American Wireless Companies Can Do Better for Small Business

PORTLAND, Ore. & LIVORNO, Italy--(BUSINESS WIRE)--What can American wireless companies learn from European’s about small business?

Due to the composition of their business market, European mobile companies, make small business a top priority.

In contrast to the U.S., the European business market consists of a high proportion of small versus large businesses. While in the U.S., medium/large businesses employ 70% of employees, European large enterprises employ only 30%. In Europe, the other 70% are in small businesses.

U.S. carriers have historically focused their energies and investments building salesforces to reach large customers. Conversely, European carriers, have emphasized mass marketing strategies as the only economically feasible manner of reaching small business.

The lack of focus from U.S. wireless companies on small businesses comes down to prioritization between immediate financial return, and long term growth. Small business requires a new sales model, and new services. As a result, most US wireless companies address small business with brochures and advertising, but when you look under the covers, the offerings aren't very different from large business or consumer offerings.

However, the US business composition is changing. As can be seen consistently from 1993-2004, employment in the US is shifting from large toward small. In 2004, firms with less than 500 employees accounted for all net new jobs in the US (1.86 million), while firms with 500 or more had a net loss (Source: US Government).

According to Lynn Castlevetro, CEO/Principal at GlassHouse Global, "Europeans haven't had a choice. With 70% employed by small business, it must be a focus for European wireless companies. Over many years, Europeans have studied the small business: business drivers, operations, services they need, how they buy, and how to support them. They understand the differences across industries such as construction or healthcare. Europeans understand small business in great detail."

A new report "Selling Mobile Phone Services to Small Businesses - What can American wireless companies learn from Europeans about selling wireless to small business?" is available for purchase. Results will be published in February.

For pricing/details, www.glasshouseitalia.com/researchStudyWireless.htm or research@glasshouseitalia.com

GlassHouse Italia/GlassHouse Global is a consultancy, helping mid/large corporations to reach small business. GlassHouse initiates research to improve technology sales and marketing to small business.