Articles

Artificial intelligence has been a hot topic in recent years, quickly becoming a crucial technology for businesses of all sizes. Advances in generative AI, along with the increasing availability of AI models through APIs, have led to new types of services with expanded use cases. This shift has made AI more accessible—not just for large tech companies, but for the general public as well. But what impact can these developments have on small business owners, and in what areas can AI be applied? Here are a few key areas where AI can make a significant difference, helping small businesses improve efficiency, customer experience, and growth.

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Administration

Running a business often involves a great deal of administrative work. One of the most obvious ways AI can support small businesses is by automating these administrative tasks. AI tools can take over repetitive and time-consuming processes, reducing human error and freeing up valuable time. In accounting and finance, AI can be particularly helpful in automating bookkeeping, invoicing, and tax preparation—lightening the workload and allowing business owners to focus on other aspects of their company.

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Marketing

Marketing comes in many forms, from large-scale campaigns to small, everyday efforts. Regardless of size, every business relies on marketing to reach customers and grow. However, creating high-quality content—whether text-based or visual—can be time-consuming, expensive, or both, especially for small business owners who lack specialized skills in this area. Generative AI tools, such as ChatGPT and Midjourney, have made headlines for their ability to rapidly generate text and visuals. These tools have the potential to revolutionize marketing for small businesses, enabling them to produce blog posts, social media content, email campaigns, and other marketing materials with minimal manual effort.

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Customer service

One of AI’s biggest advantages is its ability to handle time-consuming tasks efficiently. This makes it particularly valuable in customer service. By integrating an AI-powered chatbot, businesses can provide instant, 24/7 responses to customer inquiries, significantly reducing the volume of questions that need to be answered via email or phone. This not only saves time for business owners but also improves the customer experience by offering faster support.

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Skills development

AI can play a crucial role in education and professional development, both for business owners themselves and their employees. Today, AI-powered training solutions can analyze learning needs and create personalized education programs. AI-driven platforms, including virtual assistants and chatbots, offer instant feedback and support, ensuring continuous skills development. Additionally, AI can help identify skill gaps and recommend areas for improvement, enabling businesses to upskill their teams more effectively.

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Forecasting and analytics

Small businesses often lack the resources to process complex data for forecasting and analysis. However, AI can bridge this gap. By analyzing data, AI can identify trends and patterns that help business owners make more informed decisions. It can also be used to predict future trends, customer behaviors, and market shifts—enhancing strategic planning. Additionally, AI can provide real-time business analytics, highlighting both strengths and areas that need improvement.

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AI has the potential to unlock opportunities for small businesses that were once only available to large corporations with substantial budgets. By leveraging AI to automate time-consuming administrative tasks and handle complex processes, small business owners can save time while enhancing their operations. However, the best use of AI will vary from business to business, so it’s important to start by identifying your company’s specific needs before selecting the right AI tools for you.

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Getting a small business financing operation up and running isn’t something you do overnight. You need to have infrastructure, license and funding amongst a number of things in place to be able to do it. But thanks to embedded finance, non-financial companies such as platforms, marketplaces, SaaS providers, or other B2B services can leverage the capabilities of financial companies and integrate financing solutions and offer it directly to their customers. Offering financing to your customers brings a number of benefits to your business, here are five reasons why you should add it to your offering. 

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Your customers need it

It’s no secret that access to financing is a major hurdle for the majority of small businesses, and has been for quite some time. Europe alone has a 400 billion EUR financing gap, and worldwide the number is in trillions. So, your small business customers probably have a hard time getting access to financing when they need it, and you can solve it for them. But it’s not only that you’ll give your customers that are actively seeking financing a solution to their problem, you’ll also open up possibilities for those who aren’t in the market at the moment. Knowing that they have access to financing if and when they need it, your customers can make bets and investments they previously held back because they didn’t think they could finance them. It will also allow them to become more flexible with their cashflow management

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An additional revenue stream

The most obvious reason to integrate financing is the fact that it allows you to add an additional revenue stream, which requires minimal effort or investment from your end. With Embedded, you can integrate our white-label SME lending solutions into your existing platform with only a couple of hours worth of development time. Once integrated, the only thing you need to do to earn money from it, is to funnel your customers to use the service. You don’t need to worry about the operational aspects, funding or credit risk as the platform handles all of it. Essentially, embedded SME financing lets you add a service to your offering that manages itself and generates income with no risk attached to it.

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It increases loyalty

It’s not only revenue that you get from embedding financing though. Another reason why you should add financing is because your customers will start to see you as an enabler of their success, as you’d solve a problem that many of them have. That might lead to even bigger gains than the revenue you’re earning from their lending. When your customers become more satisfied, they will also become more loyal to you, meaning your NPS score will increase. You’ll essentially start a circle of growth, where your customers will do more business with you, while also turning into promoters for your brand.

Makes customers stay customers for longer

It’s not only the customers that become promoters that will stay for longer though. Your average customer will too. Partially because you’ll get a lock-in effect on customers that have an active loan, as it will become harder for them to switch during the repayment period. But more importantly, because offering financing makes your overall offering more attractive. You’ll gain an edge on your competitors by offering a service that brings value to your customers. And the knowledge that financing is far from widely available for small businesses elsewhere will also have an effect. It will make your customer more hesitant to move on from your business, as doing so means that they’ll also move on from the possibility of accessing financing when they need it, and will lower your churn rate as a result. 

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Potential to grow your core business

Interest revenue, increased loyalty and reduced churn can all be attributed to the lending itself – but looking past, adding financing to your offering will have more long term effects. Financing will enable your customers to invest and grow their businesses, and when they do, they will grow their overall business with you too. So on top of the short term effects of embedded lending, you’ll also get long-term core-business growth from providing your customers with the tools to help them succeed. 

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Small businesses need financing, and by integrating lending into your offering, you can bring it to them, and gain positive effects to your business in the process. By using Embedded, you can add a lending solution that is developed specifically to the needs of SMEs and that’s easily integrated into your existing platform, under your brand. With an application process that is completed in minutes, automatic data collection, credit analysis and decisioning, as well as instant loan disbursements, you can give your customers an unmatched financing experience, while proving value for both you and your customers.

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Book a demo today to learn more about how embedded lending can help you grow your business. 

Hiring your first employee as a small business owner is an exciting milestone, but it also brings challenges. Whether you have hired before or if you are going to do it for the first time, it can feel like a big step to take and that it must not go wrong. It's an investment to hire and find the right skills and employees is not straightforward. A hiring process can also be costly if it takes time or if it doesn't get right and the process needs to be redone. Here are some tips and advice to make the process as smooth and successful as possible for you when you are going to hire.

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Before you start
In order to be employed, your company needs to be registered as an employer with the Swedish Tax Agency. If not already, you can register as an employer at verksamt.se. On verksamt.se you will also find practical information about being an employer.

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Define the needs
Before starting the recruitment process, it is important to think carefully about the specific needs of your company. Write down a detailed job description that clarifies the duties, responsibilities and goals of the new role. Also consider what skills, experience and qualifications are required. If you already have employees, it's a good idea to talk to them about what needs and areas they think should be reinforced. Next, formulate a job description, define job duties and what requirements are imposed on the person to be hired.

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Budgeting for expenses
Hiring involves more costs than just the salary. You need to take into account employer contributions, insurance and work tools. It's also important to think about any benefits that might make your offer more attractive, like the wellness allowance and pension. Not all hires provide the right of return from day one. But by making a concrete budget, you can ensure that your company can actually afford to hire and that you can bear the cost until the investment starts to pay off.

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Start searching
Once you've made your preparations, it's time to start searching for the right candidate. Put together a job advertisement that is relevant to the profile and qualifications you are looking for and publish in relevant channels. It is important that the description in the advertisement actually matches the intended role. It is rarely good if the person you hire does not feel that the role matched their expectations, and then there is a risk that you will not get the maximum return, and may need to redo the process. Be open to hiring someone with potential and willingness to learn instead of staring you blind to it being exactly the right experience. Sometimes attitude, person chemistry and cultural match can be a better choice than the right experience on paper.

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Conduct interviews & check references
Schedule interviews and prepare questions that can help you gain a deeper understanding of the candidate's competencies and personality. Structure the interview to cover the most important aspects, like work experience, skills and problem solving skills. Also, be sure to assess how well the candidate fits into your company culture. Let the interview become a two-way communication where the candidate will also have the opportunity to ask questions and get a feel for the company. Before you decide to hire, it is good to check the candidate's credentials. This can reveal both positive and negative aspects that do not appear in the interview but can help you make a more informed choice.

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Offer competitive terms
Finding good employees can be difficult, keeping them happy doesn't have to be. It can be easy to try to get away as cheaply as possible when hiring, but retaining labor is all of the time cheaper than finding new ones. And if your employee does not feel sufficiently appreciated or that they are not receiving compensation in line with their contributions, it can easily lead to decreased motivation and them starting to look for other jobs. Therefore, start by offering the most competitive terms possible based on your circumstances and the employee's profile to ensure their satisfaction. Keep in mind that it is not only the salary that comes into play, but other benefits such as flexibility, development and a stimulating work environment are just as important.

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Create a good introduction
A well-thought-out introduction is crucial for a new employee to feel welcome and quickly get up to speed with their tasks. Prepare an onboarding process and have a clear plan for what the employee will be working on and how they will be integrated into their responsibilities. Be ready to provide support for a period until they have a solid grasp of the job. Also, ensure they receive all the necessary information and tools to perform their tasks efficiently. Additionally, schedule regular check-ins during the first few months to ensure they feel confident and have everything they need.

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Follow-up regularly
Schedule regular follow-up meetings with your new employee to discuss their progress and provide feedback. This allows you to identify any potential issues early on and ensure they receive the necessary support to succeed. These meetings are also a great opportunity to talk about their development and future goals, which can boost their engagement and motivation. Additionally, it’s important for you to remain flexible and be prepared to make adjustments if needed.

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Hiring is a big step for many small business owners and something that can be critical to the success of the business. By carefully-planning and executing the recruitment process, you can make it easier to find the right employees to contribute to the growth and development of the company.

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When 2024 is summed up, we can state that it has been a challenging but also insightful year for Sweden's small business owners. With high interest rates, rising costs and changing customer behaviour, adaptation has been required to keep up with developments. At the same time, there have been glimmers of light in the form of new opportunities thanks to digitalisation and an increased awareness of the importance of local presence. Here's a look back at the most significant trends in 2024 and some thoughts on what might be good to carry into 2025.

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Trends that shaped 2024

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Continued economic challenges
High interest rates and the general economic situation put pressure on entrepreneurs from several directions and made 2024 a tough year for many. Especially in sectors such as construction and trade, many entrepreneurs struggled with falling demand. At the same time, it is possible to look forward with more optimism than in years. Inflation has stabilised and interest rates have started to fall. This will benefit businesses both in terms of reduced financing costs, but also increased demand as the economy begins to recover.

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New technologies provide new opportunities
AI went from being a trend to actually becoming a tool that makes it easier for entrepreneurs. Today, there are a range of AI tools that can help entrepreneurs automate tasks, streamline processes and even create materials. For entrepreneurs, not only does this mean new opportunities, but AI can help free up both time and energy in a busy everyday life.

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Sustainability continues to be important
In 2024, customers continued to prioritize companies that take responsibility for sustainability — both socially and environmentally. For small business owners, this meant that a clear sustainability strategy was not only a way to do good, but also a business necessity. Working with sustainability is also a way to secure the company for the future, as it is likely that higher demands will be placed on smaller companies in the future related to sustainability work.

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Events around the world benefited the local
An outside world of trade threats, unrest and increased customer awareness led to the return of the local becoming a trend in the past year. Customers came to appreciate personal meetings and businesses with local roots. Something that made social media, storytelling and presence in the local community important tools for building trust and loyalty.

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Things to think about in 2025
Even if 2025 looks to be a much better year for Sweden's entrepreneurs, lessons can be learned from the past year, in order to build for the future.

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Build buffers and be flexible: With times now hopefully getting better, it's good to start building up the company's buffer. That way, you can be better equipped in case there are tougher times again.

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Bend using new technology if you don't already: As I said, AI and other digital solutions can help you streamline your business, and if you haven't tested the tools available today, it's time to do so. It can give your business new opportunities and free up time for you that you can spend on developing the business.

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Be proactive: With customers now starting to come back, it's good to be ahead of time with your planning to be able to gain market share during the year. Therefore, do your research
and start processing the customers instead of waiting and hoping they come to you.
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Think about cyber security: The threat from hacker attacks and fraud is growing, with businesses and individuals alike increasingly affected. Is corporate cyber security not fully in place? 2025 is the year to act! Take control and learn more at sakerhetskollen.se.

2024 has shown that small business owners are resourceful and conflicted when times get tougher. By being close to customers, exploiting technological opportunities and investing in sustainability, you can create the conditions for success in 2025.

Embedded finance is rapidly changing the funding landscape for SMEs, but we have only scratched the surface of its potential. Many B2B vendors have already begun to realize the benefits of offering financing. Developments in embedded finance are progressing rapidly and a number of innovations are expected to be introduced in the coming years. Here are some areas to keep an eye on:

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Increasing use of AI

Artificial intelligence has been on everyone's lips in recent years and the emergence of this field is likely to have a big impact on embedded finance as well. With AI's ability to analyze large amounts of data to identify fraud patterns and predict risks, customer awareness (KYC) and anti-money laundering (AML) processes can be automated to a greater extent and become both faster and more precise. This will not only lead to reduced costs and better compliance, but also better customer experiences.

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New technological solutions

As more and more partnerships are established in embedded finance, companies will find solutions to leverage each other's infrastructure and launch innovative products. Card-based lending and the fact that loan transactions are made automatically through the customer's debit card is an example of such innovation. But we are likely to see even more innovations in areas such as collateral, instalments and transactions in the coming years.

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EU legislation

As part of its efforts to establish a Capital Markets Union, the European Commission has presented a proposal for an SME referral scheme. The proposal means that banks and other lenders would have to refer SMEs to alternative sources of funding, if they denied their application for funding. The idea is that it should encourage operators not to casually reject applications from SMEs in favour of more profitable lending. However, by integrating embedded finance solutions developed for SMEs, banks and other lenders can stay ahead of any legislation. This way, they can avoid having to refer customers to competitors and at the same time improve the experience and service.

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Financing integrated into customer flow

B2B providers of both services and products will increasingly make financing an integral part of the customer flow. By integrating the services into their own feeds, B2B vendors can create more seamless experiences where they have greater control over the customer's buying journey. When customers can resolve financing without having to leave platform they already use, friction decreases and customer satisfaction increases. In addition, suppliers may collect data on customer behavior that can be used to tailor products and services.

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Cooperation between fintech and banks

The role of banks in the B2B segment is changing as fintech companies in different niches have established themselves. Today, more and more banks offer their services to or through fintech companies and virtually all traditional banks have begun to establish banking-as-a-service offerings. In the coming years, partnerships between banks and fintechs will become increasingly common. By working together, fintech companies can benefit from banks' infrastructure and regulatory compliance, while banks can offer their customers new and innovative services.

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Developments in embedded finance will reshape the B2B finance market in several ways. The coming years will see a series of new innovations and collaborations be launched that will lead to more relevant and contextual financial solutions, new revenue streams and a more integrated and seamless customer experience. Companies that can successfully adapt and navigate the embedded finance landscape will stand strong in the future.

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Most entrepreneurs want to grow their businesses, and while it can be challenging, it's also very rewarding. Growing the company can be done in several ways but always requires strategic planning, careful execution and a willingness to adapt to changing market conditions. Here are some tips that can help you on how to proceed and where to start if you want to grow your business.

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Set vision and goals
A clear vision and concrete goals are the foundation of any successful business. Vision tells you what your long-term goal is and acts as a compass that you can use in your decisions and actions to ensure they align with where you want to go. Once you have a clear vision, the next step is to break it down into concrete and measurable goals. The goals act as sub-goals and give you clarity on how to achieve the vision. One tip is to do it by using the SMART method (specific, measurable, accepted, realistic, timed) to set realistic and motivating goals that give you clear guidelines and motivation.

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Develop a strategy
A strategy is your plan to achieve the goals you set. Start by doing a market analysis to understand the market conditions, competitors and the latest trends. Identify what resources you need in terms of personnel, capital and technology. Then create an action plan with timelines and responsibilities for each goal. Keep in mind that the strategy must be flexible in order to be able to adapt if circumstances change. By having a clear and structured strategy, you can ensure that the company is working towards its goals.

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Understand the target audience
Understanding your target audience is one of the most important aspects of running a successful business. By knowing who your customers are and what they need, you can create products and services that truly meet their needs. Use market research, focus groups, and data analytics to gain insights about your customers. Divide your audience into segments based on demographics, behavior, and preferences. It allows you to tailor your offering and marketing to better appeal to each segment.

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Improve customer experience
A positive customer experience leads to loyalty and increases the likelihood that your customers will recommend your company. Improving the customer experience can be done in many ways, you can invest in training your team in customer service and making sure they have the tools and resources they need. You can also invest in new systems that make the shopping experience smoother or increase personalization. Also collect feedback from your customers, partly to find out how they think and feel, and partly to show that you value their opinions.

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Expand the reach of the company
To grow, you need to reach out to more potential customers and one way to do that is to expand the business. Depending on what your business does and how dependent it is on physical meetings or locations, an expansion can be different complexes to implement. However, it usually takes some type of major investment to make an expansion, especially if you are going to establish yourself in a new locality or market. You can also expand by partnering with other companies to leverage their customer base and resources. Partnerships can open doors to new markets and opportunities, and can be an effective way to quickly increase your reach.

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Invest in marketing
One of the most effective and proven ways you can reach new customers is through marketing. Effective marketing creates awareness, drives sales and increases customer preference. Different types of marketing serve different purposes however, but the basic rule is to have a balance between activities that are supposed to strengthen your brand long-term and ones that drive conversion in the here and now. Start by looking at what you are doing today and what you could do to reach out better. You can enlist the help of a brand consultant or marketing agency to help you review your needs and prerequisites.

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Developing new products or services
Innovation is often the key to differentiating oneself in a market. By analyzing market needs and developing new products or services that address those needs, your business can stand out from the crowd. If you are also constantly improving your existing products or services based on customer feedback and technological advances.

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There are many ways to grow businesses and there are really no right and wrong. Without what works for your conditions, what is right for your business. By focusing on these areas, you can create a solid foundation for growth and success. Remember to continuously evaluate and adjust your strategies to meet changing market conditions and customer needs. With the right vision, strategy and tools, your small business can reach new heights.