While there isn’t any one-size-fits-all business growth strategy, small businesses anticipate sustainable business development in 2023 with the U.S. Treasury’s State Small Business Credit Initiative (SSBCI). For example, the state of Illinois will be receiving up to $354.6 million as part of the SSBCI to help attract capital investments as well as expand or initiate business operations. According to their official press release on December 7, this small business funding initiative will administer four programs that will support the key sectors and provide easier access to critical resources.
These federal dollars are also expected to boost small businesses’ IT spend in the forthcoming year, making it a booming juncture for SMB-focused IT and cloud solution providers – opening unlimited opportunities by increasing the size of your Total Addressable Market or TAM.
Uplifting the US Economy through ‘The American Rescue Plan’
With a history of tremendous success in increasing access to small business capital, The American Rescue Plan is making attempts to rebuild the US economy through its proven model of SSBCI by providing almost $10 billion to states, the District of Columbia, territories, and Tribal governments. Back in September, California Governor Gavin Newsom announced $1.1 billion to support California’s small businesses that is intended to leverage an additional $18 billion of capital to the state’s small businesses.
By calling this a “historic investment”, United States Senator Alex Padilla further added, “The $1.1 billion invested in California’s small businesses will help unlock the potential of entrepreneurs in underserved communities across the state who may have never had the support needed to build their businesses and achieve the American Dream. When small businesses succeed, they create good-paying jobs that revitalize our neighborhoods and strengthen our economy.”
How Federal Funding Can Influence Demand Generation for Your SMB-focused Solutions
A 2022 report released by the White House declares a small business boom that witnesses more new startups than ever before. On one hand, 5.4 million new business applications were received in 2021, which is 20% more than any other year. On the other, SMBs are prioritizing higher IT spending, predicting year-on-year growth.
The federal funding is the cherry on top of this evolving scenario for technology sellers/vendors, as it opens doors to unlimited opportunities by increasing the size of your Total Addressable Market or TAM.
With more and more existing and newer businesses adapting to a digitized approach, especially IT-enabled infrastructures for superior efficiency, safety, and returns, your business has the full potential to unlock the possibilities towards future expansions.
A recent report by Analysys Mason predicts, small businesses will spend USD 779 billion in 2023 on IT in order to upgrade their IT infrastructure and operations. In fact, the usual roadblocks with SBs, like cash reserves, would definitely find more than one solution with the federal funding coming in. As stated in the press release, the upcoming Advantage Illinois (AI) Loan Guarantee Program has been approved to enable small businesses to obtain financing more conveniently. The INVENT Venture Capital Program (VCP) focuses on investing in ag tech, agriculture, information technology, life sciences, manufacturing, quantum, etc., which happen to be the key industries.
With record levels of new businesses and new jobs that the small businesses are creating, a significant rise in productivity is expected to be observed, impacting the American economy as well as the standard of living. Altogether, this juncture is definitely going to be a breakthrough for IT and cloud solution providers, for the horizon is broadening and so is the future.