Technology is wielding unprecedented influence on small and medium-sized businesses (SMBs) across the United States this year. Today innovation is not just a buzzword but a critical component of success. That’s why SMBs are harnessing the power of cutting-edge technologies, including artificial intelligence (AI) to streamline operations, engage customers, and drive growth. But not just in theory!
The 2023 report by the U.S. Chamber of Commerce has captured substantial evidence to confirm the data of high technology adoption among SMBs—so much so that “95% of U.S. small businesses use at least one technology platform, with high-tech usage correlating with growth in sales, employment, and profits.” SMB are braving through numerous challenges, such as limited workforce, inflation, etc., armed with advanced tech support, which is also keeping them focused as well as optimistic about the future. Here’s more.
“…even during one of the most challenging times for smaller and independent operators to do business, when those companies used technology, they contributed $17.7 trillion to the U.S. economy and supported nearly 99 million American jobs.”
—U.S. Chamber of Commerce, 2022
Technology Equals to Growth for SMBs
According to this year’s report by the U.S. Chamber of Commerce, small businesses, which have made greater implementation of technology in the recent past, are more likely to have enjoyed higher sales profit and workforce expansion.
So, how SMBs are using technology to run their businesses?
Topping the charts, 61% are applying it to their marketing/promotions, which is a 8% rise from last year. 57% for processing sales, 56% for customer/prospect communications, among others. Interestingly, 27% have adopted technology to prevent fraud as well as to better ‘know’ their business partners.
The report further claims that social media and digital payments happen to be the most used platforms among SMBs. 87% of small businesses saw the greatest increase with technology use in social media and 57% chose digital payments.
How technology is able to keep SMB owners at ease?
On top of growth, tech support has been quite comforting to small businesses owners during the hours of crisis. By lightening the burdens of weather inflation and supply chain disruptions, access to credit and capital, and more, technology has literally been the key sustenance to many. 39% SMBs have agreed that technology platforms helped their businesses limit cost increases that would otherwise have been passed on to customers.
Small Businesses Partnering with AI
23% of U.S. small businesses already use AI, and marketing and communications happen to be the most common use cases.
It goes without saying that small businesses in the United States are increasingly turning to AI to enhance their operations and competitiveness. AI technologies, such as chatbots and personalized marketing algorithms, have been instrumental in improving customer service and increasing sales. Small businesses have leveraged AI-powered data analytics to gain insights from large datasets, aiding in decision-making and forecasting. Moreover, AI-driven inventory management systems have enabled more efficient stock control, reducing costs and optimizing supply chains. The adoption of AI in financial management, HR, and cybersecurity has also helped SMBs streamline operations and protect against potential threats.
“84% of businesses using AI are optimistic that it will help future growth. 82% also agree that AI has helped increase efficiency of business operations.” (U.S. Chamber of Commerce, 2023)
What’s stopping the rest of SMBs from turning to AI?
Primarily, lack of knowledge. The U.S. Chamber of Commerce report indicates that 39% have no clue as to how AI can help their businesses; 38% don’t know enough of the technology; 25% have cost concerns; and 7% informed about adequate training issues.
“Given the importance of AI education, small businesses that know more about the technology are more likely to understand its benefits. For example, among those who say they are very knowledgeable about AI, 77% of small businesses believe it will help their business in the future compared with only 35% of firms that claim to not know much.”
The report further states that out of the small businesses that use AI, 92% have realized that technology helps businesses communicate more effectively with their customers, and 89% agree that it has supported growth during challenging times. Plus, 90% of the SMBs who use FinTech understand that technology helps find new customers.
Besides keeping the optimism high among tens of thousands of SMBs, the major technology innovations are helping businesses shine by growing their sales, profits, and workforce. Undoubtedly, the possibilities are immense with this transforming magnitude! And that’s all the more reason for tech companies and digital service providers to amplify their outreach in connecting with SMBs, which opens a two-way street for learning and churning out benefits.
