Press release

E-Commerce Firms Race for Growth Capital, Betting Big on AI and Advanced Tech according to Stenn survey

0
Sponsored by Businesswire

Stenn, the next-gen capital platform that gives entrepreneurs the freedom to grow, today revealed the results of a survey of 500 senior e-commerce leaders, uncovering the challenges their small to medium e-commerce companies encounter when scaling, and how they approach accessing capital and financial advice.

2024 has marked a milestone year for e-commerce, with global sales surpassing $6 trillion for the first time. As the sector is projected to represent nearly 41% of all retail sales by 2027, retailers are poised to capitalize on this growth in the coming years.

Key survey findings include:

  • A notable 61.8% of leaders who sought growth capital did so to invest in advanced technologies, such as AI and machine learning, to improve their businesses, demonstrating that tech investment is top of mind for future-focused e-commerce businesses.
  • When asked which resources they wished they had more access to, 63.8% of respondents pointed to growth capital. Women indicated a stronger need for business operations training (51.2%) and financial planning resources (48.8%) compared to men (30.8% and 15.4%).
  • Financial advice and mentorship were critical for many business owners, with 40% seeking external guidance at least once a week to help with business decisions. Despite these challenges, almost half (49.6%) of respondents are proactively forecasting their business activity 6-18 months ahead, demonstrating a strong commitment to strategic planning and the commitment to growth.

With the rapid expansion of e-commerce comes an array of new challenges, especially as small and medium e-commerce companies are looking to scale. Global geopolitical instability and increasing inflation is causing e-commerce to face a liquidity crisis, which means companies may not be able to access the funds they need to increase sales.

“As e-commerce continues to grow rapidly, driven by increasing online consumer demand and technological innovation, it’s important to remember that capital constraints and access to growth financing remain persistent hurdles for many e-commerce business leaders especially at small and medium-sized businesses,” said Noel Hillman, Chief Commercial Officer at Stenn. “In this competitive landscape, ensuring liquidity and optimizing supply chain processes are critical to sustaining growth and scaling operations. At Stenn, we’re committed to enabling businesses to maintain cash flow, invest in technology, and expand into new markets.”

Please see the accompanying infographic here.

Methodology

The research was conducted by Opinion Matters, among a sample of 250 US-based senior decision makers (Founders, Owners, CEOs, Managing Directors and Functional Financial Leaders) in wholesale/B2B, B2C OR D2C businesses with 1-500 employees with at least $2.5 M average annual revenue and at least a year in operation. Companies should also import goods from abroad (stock/inventory/raw materials). The data was collected between August 29th and September 5th, 2024. Opinion Matters abides by and employs members of the Market Research Society and follows the MRS code of conduct and ESOMAR principles.

About Stenn

Stenn is an online capital platform that gives businesses the freedom to grow. Stenn aims to make capital universally accessible to the world’s independent companies and entrepreneurs, expanding opportunities in global trade, online commerce and software as a service. With employees in Asia, the U.S., and Europe, Stenn has provided more than $20 billion in non-equity funding to customers in 74 countries with capital invested by top-tier financial institutions, including Citibank, HSBC and Goldman Sachs.