Small Businesses Inherit Big Business Money Problems

SMBs Sourcing Internationally

57%

Percentage of U.S. SMBs that purchase goods or production inputs from overseas suppliers.

Revenue-Sourced Internationally

75%

Percentage of firms generating between $1 million and $10 million in annual revenue that source internationally.

Low Revenue International Sourcing

40%

Percentage of businesses earning less than $150,000 annually that now buy from foreign suppliers.

§ 01 Executive Snapshot

What: Small and medium-sized businesses (SMBs) are increasingly adopting enterprise finance responsibilities due to global sourcing.
Who: U.S. small and medium-sized businesses, PYMNTS Intelligence, Mastercard.
Why it matters: The shift in SMB finance operations signifies a critical evolution in how domestic businesses manage international transactions and supplier relationships.

Nearly 6 in 10 U.S. SMBs (57%) purchase goods or production inputs from overseas suppliers.
About 75% of firms generating between $1 million and $10 million in annual revenue source internationally.
Over 40% of businesses earning less than $150,000 annually now buy from foreign suppliers.

The globalization of supply chains is leading to an increase in financial responsibilities for SMBs, traditionally associated with multinational corporations.
The trend reflects a broader narrative of how technological advancements and globalization are reshaping local business operations into more complex, international frameworks.

Immediate implications include the need for SMBs to enhance their financial operations to manage foreign exchange risks and cross-border cash flows effectively.
Long-term implications suggest that the competitive edge for SMBs may hinge on their ability to manage global supplier relationships and financial transactions efficiently.

Potential risks include regulatory challenges and the complexities of managing foreign exchange exposure and supplier payment preferences.
Competition from traditional financial institutions and the rapid evolution of FinTech platforms could present challenges for SMBs in adapting to new payment systems.

Upcoming milestones include the increasing adoption of embedded payment solutions within accounting and enterprise software platforms.
Future developments to watch will be the effectiveness of SMBs in managing their global supplier relationships and the evolution of their financial operations as they adapt to these changes.

§ 07

What financial responsibilities are small and medium-sized businesses adopting?

Small and medium-sized businesses are increasingly adopting enterprise finance responsibilities due to global sourcing.

Why is the shift in SMB finance operations significant?

The shift signifies a critical evolution in how domestic businesses manage international transactions and supplier relationships.

How are globalization and technology affecting SMBs?

Globalization and technological advancements are reshaping local business operations into more complex, international frameworks.

What risks do SMBs face with international sourcing?

SMBs face regulatory challenges and complexities in managing foreign exchange exposure and supplier payment preferences.