Review of the “SMB Ambitions Barometer 2024” by Payoneer

Review of the

“SMB Ambitions Barometer 2024” by Payoneer

Have you checked out the Payoneer report, “SMB Ambitions Barometer 2024” yet?

In this report, Payoneer explored the challenges and opportunities that small and medium-sized businesses (SMBs) face right now. Working with Oxford Economics, Payoneer surveyed 3,779 SMBs across 15 countries to understand their progress, goals, and frustrations. The respondents represented companies from over 16 industries, ranging from e-commerce to mining. These businesses drive the economy, so their insights provide a broad view of the global business landscape.

We've gathered the most interesting insights and findings from the report in this post, focusing especially on trends in Ukraine (note: in 2024, the Ukrainian sample size was 64 respondents, compared to 200+ from other countries, so keep this in mind when analyzing the facts below).

Globalization is on the rise

On average, 46% of SMBs' customer bases are international, up from 42% in 2023.

Europe is the top expansion destination

26% of respondents plan to grow there over the next five years. Ukraine has the highest share of international clients among all the surveyed countries, averaging 61%.

SMBs face several barriers..

.. when entering new markets, including business costs, legal and regulatory requirements, and language and cultural barriers.

Businesses are underprepared for macro events

over 40% say they are not ready for geopolitical conflicts, product boycotts, etc. The report mentions "ongoing conflicts in the Middle East" and the "Russia-Ukraine war" as parts of the turbulent geopolitical environment impacting SMBs.

Barriers for international expansion among Ukrainian SMBs:

Local restrictions and sanctions: 41%
External events/disruptions: 41%
Unstable financial indicators: 42%
Limited personal or professional networks: 37%

Ukrainian businesses note these benefits from going global (compared to global averages):

Access to new customers: 64% (global: 56%)
Innovation: 58% (global: 56%)
Access to suppliers: 53% (global: 53%)
Financial performance: 52% (global: 51%)
Access to quality resources: 50% (global: 51%)
Access to capital: 47% (global: 47%)
Pricing control: 42% (global: 45%)
Ability to find and retain talent: 38% (global: 45%)

Technology aids globalization

76% of entrepreneurs believe that the pace of technological change drives innovation in their companies.

AI usage is growing

nearly two-thirds of surveyed companies plan to use or are piloting AI for various business processes.

AI usage in Ukraine is notable in some areas (compared to global averages):

Improving merchandising: 31% (global: 23%) – a significant percentage even with a smaller sample size. It seems Ukraine has found an excellent way to use AI. Interested in reading more about this? Or maybe you can share your thoughts
Improving inventory management: 22% (global: 23%)
Enhancing customer service: 19% (global: 26%)
Trend forecasting: 19% (global: 22%)
Competitor analysis: 17% (global: 22%)
Supply chain optimization: 16% (global: 22%)
Content creation: 13% (global: 24%)
Localization and translation of content: 9% (global: 22%)

Overall, Ukrainians are still lagging in AI implementation. So, there’s your opportunity for growth!

According to the report, half of the businesses worldwide still don't understand where to apply AI or who will implement it. 43% of SMBs find it hard to effectively integrate new technologies into their operations, and 44% struggle to find the right people to help.

Cybersecurity is becoming a priority

the number of respondents who consider reducing cyber risks a key business goal has increased by 63%. Despite the trend of globalization allowing for cheaper hires from low-income countries, many companies still prefer hiring local staff to support their national economies. Interestingly, surveyed businesses tend to prefer international suppliers (contractors) over local ones. In Ukraine, the distribution of planned hires this year is as follows: 54% local, 27% regional, and 20% international.

Global payment trends are shifting

SMBs are sending/receiving fewer payments to/from the USA, China, and Canada, but more to/from Brazil, India, Japan, and Germany. Companies in Ukraine mostly send and receive payments to/from the USA, Poland, and Germany.

Stay tuned for more insights and updates from the Payoneer report!