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How to Get the Best ERP for Small Business to Ensure Growth

Published: Apr 18, 2024  |   | 
ERP for Small Business

Whether you run a small business or own a startup, it is an arduous task to handle multiple tasks. Managing finances, customer relationships, sales, and inventory can create complexities and hurdles on your way to growth. Thankfully, evolving technology has found the solution to this difficulty in the form of an ERP for small business. The right ERP tool can streamline operations and give valuable insights for making real-time decisions.

However, selecting the best ERP for small businesses is a critical decision. You need to consider multiple aspects like business needs, competition, market trends, and even budget when choosing the most suitable ERP software for your business. Here, SAP ERP solutions can lend a helping hand with excellent features and seamless functionality. In this post, we will dig deep into the types of SAP ERP software available for small businesses.

SAP is a renowned name in enterprise software. It offers several solutions for SMBs including SAP Business One (SAP B1), SAP Business ByDesign, SAP S/4HANA Cloud, and SAP ERP Core Finance. Let's understand and compare these types in the next section, and see the criteria for selecting the most suitable software for your business.Before moving ahead, let’s see some interesting facts related to SAP ERP solutions.

Interesting Facts

  • The SAP ERP market size is expected to reach $15.2 billion by 2027
  • The SAP ERP software has over 440,000 corporate customers across 180 countries in the world
  • SAP has more than 17000 official partners worldwide to offer innovative ERP products
  • Almost 80% of SAP ERP customers are small and mid-size enterprises
  • Source

Top SAP ERP Software for Small Businesses

ERP For Small Business

SAP offers a range of ERP solutions for modern businesses. Here is a breakdown of SAP ERP software for small business.

SAP Business One

Designed specifically for small and mid-sized businesses (SMBs), SAP Business One is an all-in-one ERP solution. It offers functionalities like managing financials, inventory, customer relationships, and sales. SAP Business One is a scalable solution that can grow with your business.

SAP Business ByDesign

This cloud-based ERP solution is ideal for fast-growing small businesses. SAP Business ByDesign boasts pre-configured industry-specific templates, enabling users to get a quicker implementation. It streamlines core business functions like financials, project management, and human resources.


This robust cloud-based ERP system is built on SAP's in-memory computing technology, HANA. While SAP S/4HANA Cloud caters to a wider range of businesses, its inherent scalability makes it a potential option for some small businesses looking for a high-end, robust, and future-proof solution.

SAP ERP Core Finance

This offering focuses solely on core financial management functionalities like general ledger, accounts payable and receivable, and financial consolidation. Though SAP ERP Core Finance is not a full-fledged ERP system, it is useful for small businesses with needs for financial management.

Let's compare their features and benefits so that you can make your decision.

Comparison of features and benefits of ERP for small businesses

Here we give a concise list of features, benefits, pricing, and pros and cons of SAP ERP for small businesses. It will help you choose the best ERP for small business-

Features and Benefits

1. SAP Business One

  • Features - Core financials, CRM, inventory management, production planning, reporting & analytics.
  • Benefits - Affordable, user-friendly, scalable, on-premise deployment.

    2. SAP Business ByDesign

  • Features - Financials, project management, CRM, human resources, pre-configured industry templates.
  • Benefits - Cloud-based, fast implementation, industry-specific functionalities.

    3. SAP S/4HANA Cloud

  • Features - Real-time analytics, powerful in-memory computing, scalability, a broad range of business functionalities.
  • Benefits - Future-proof, robust, comprehensive solution.

    4. SAP ERP Core Finance

  • Features - General ledger, accounts payable & receivable, financial consolidation.
  • Benefits - Focused financial management, potentially lower cost.

    Let’s talk about SAP costs for small businesses.

    Pricing and Licensing of SAP ERP solution

    • SAP Business One- Varies depending on features, deployment model (on-premise or cloud), and number of users. Generally considered the most affordable option.
    • SAP Business ByDesign- Subscription-based pricing model with tiers based on functionalities and users.
    • SAP S/4HANA Cloud- Subscription-based pricing with variable costs depending on features, users, and storage requirements. Typically the most expensive option.
    • SAP ERP Core Finance- Licensed per user with potential additional costs for maintenance and support.

    Finally, it is beneficial to go through the pros and cons of each SAP ERP solution.

    You May Also Like - SAP Business One Price in India

    Pros and Cons of SAP ERP solution

    SAP Business One

    Pros- Affordable, user-friendly, good fit for growing businesses. Cons- Limited industry-specific functionalities, on-premise deployment requires IT infrastructure.

    SAP Business ByDesign

    Pros- Cloud-based, fast implementation, industry-specific features. Cons- May lack customization options compared to Business One, subscription costs can add up over time.

    SAP S/4HANA Cloud

    Pros- Powerful, real-time analytics, future-proof, scalable. Cons- Complex implementation, high cost, may be overkill for small businesses with simple needs.

    SAP ERP Core Finance

    Pros- Focused functionality, potentially lower cost Cons- Limited to financial management, may require additional solutions for other business areas, potential integration challenges

    You can consider the following criteria for selecting the best SAP ERP software for your business.

    Criteria for Choosing the Best SAP ERP Software

    Selecting the most suitable SAP ERP software for your small business depends on several key criteria. First, you need to understand your company's objectives, growth trajectory, and specific operational needs. You can evaluate features like core financials, customer relationship management, inventory control, and industry-specific functionalities. Secondly, you can consider your budget and IT infrastructure, as some options like SAP B1 require on-premise deployment while others are cloud-based.

    Finally, it is necessary to consider the pros and cons of each solution, including user-friendliness, scalability, implementation complexity, and long-term costs. Support and maintenance cost for each software is also a necessary aspect to consider. You can consult an official SAP implementation partner with these considerations to identify the optimal SAP ERP solution for your business.

    Experience advanced business solutions. Simplify operations. Improve productivity. Achieve growth.


    SAP has brought several advanced ERP solutions for small and mid-sized businesses across different industry sectors. SAP B1, SAP Business ByDesign, SAP S/4HANA, and SAP ERP Core Finance have their features, benefits, pros, and cons. Hope this comprehensive guide will help you select the best ERP for your business. It is always advisable to consult an official SAP Partner to learn more about these advanced and user-friendly solutions.

    Silver Touch is a leading SAP ERP solutions provider. We can assist you in finding the best ERP software for small business in India and abroad. Our experienced SAP professionals can help you get the most suitable solution with the desired features to meet diverse business needs effectively. If you are looking for the right SAP ERP system for small business, simply contact us and we will assist you from the very first step.

    FAQs on ERP for Small Businesses

    What is ERP and how can it benefit my small business?

    ERP stands for Enterprise Resource Planning. As an all-in-one software, ERP can streamline various aspects of your business like accounting, inventory, and sales.

    Is ERP too complex or expensive for a small business?

    ERP systems can seem complex, but there are solutions from SAP designed specifically for small businesses that are user-friendly and affordable.

    What are some key considerations when choosing an ERP system for my small business?

    You can consider your budget, industry needs, and how scalable the system is as your business grows.

    What are the typical steps involved in implementing an ERP system? Should I consider using a free or open-source ERP system?

    Implementation of an ERP system involves steps like data migration, configuration, and training. Free/open-source options can be cost-effective but may require more technical expertise to set up and you need to pay additional costs for support and maintenance.