Financial infrastructure platform for businesses Stripe has published its 2023 Insights Report which showcases that businesses still invest in growth despite the economic climate. The report is based on a survey of 2,500 business leaders throughout nine countries and highlights that businesses have more confidence in their own growth than in the health of the broader economy.

Stripe research findings As per the press release information, 80% of respondents expressed pessimism regarding the state of the economy, something that was consistent throughout no matter the business models, location, and company size, with businesses having ranked inflation as their top concern, and 72% have reported that operating costs were higher than the previous year. Against this backdrop, companies are investing in new products and revenue streams, not cutting costs, with a majority leveraging payment tools to increase their revenue while also aiming to automate financial tasks to rein in spending. Encouraged by these opportunities, 65% of survey respondents showcased confidence towards their 2023 growth.

Commenting on this, Emily Glassberg Sands, head of information at Stripe advised that in past slowdowns, businesses that succeeded made ‘bold bets’ while cutting down on waste, and the belief is that the internet is set to enable an increased number of businesses to use the same strategy. The announcement states that businesses like General Electric and Amazon have launched new products during previous recessions while simultaneously maintaining capital discipline. What is more, study findings from Bain & Company, McKinsey & Company, and Harvard Business Review suggest that the formula can be replicated, and businesses today are turning to the internet to implement it.

The 2023 Insights Report found that 61% of businesses are making use of the current slowdown by experimenting with new ways for increasing their revenue online, with a multitude of them leveraging tools that open new revenue sources without significant upfront investment. Approximately two-thirds of businesses agree that online payments helped create new methods for making money, and 71% agree that there’s an increase in their customers’ expectations towards ‘smooth’ checkout experiences, which results in businesses wanting to prioritise payment tools that enable sales growth. However, a multitude of other businesses ‘leaves money on the table’ by not taking full advantage of innovations in payment technology.

A past Stripe research showcased that three-quarters of customers were more likely to complete a purchase when offered one-click checkout, however, half of the businesses from the 2023 Insights Report stated that they haven’t fully explored online payments for sales increase. Two-thirds of respondent businesses intend to address the inflation by cutting down costs, with 20% planning to do so on core products or services, and one-third prioritising hiring freezes. The remaining respondents aim to cut operating expenses, with 51% prioritising negotiating better rates with vendors, and 70% planning to cut the number of software providers used.

Research Methodology Based on the information detailed in the press release, the 2023 Insight report compiled survey findings from 2,500 founders, enterprise executives, heads of payments, and CFOs at businesses throughout Australia, Brazil, France, Germany, Japan, Mexico, Singapore, the United Kingdom, and the United States. .