A whopping 81% of businesses predict a boost in sales from large corporations over the next five years, according to a survey by American Express. The survey of small and midsize business suppliers found that 50% of respondents anticipate revenue increases by 50% or more from contracts with large corporations with over $1 billion in revenue.
Small Business Contracts With Big Companies on the Rise
The optimism stems from the fact that more and more corporations are contracting small businesses for substantial external purchases each year. These contracts are creating vast opportunities for small and medium businesses. And they are amounting to 30-50 % of their total revenues depending on the industry.
Nearly three-quarters expect their company’s revenue to increase over the next 12 months. And another 73% agree their companies have increased their financial commitment to working with companies with over $1 billion in revenue.