The impact of technology on small businesses

Summary

A report by the U.S. Chamber of Commerce reveals that small businesses leveraging technology grow faster, profit more, and hire more workers. Key findings highlight that technology platforms, like social media and payment apps, help small businesses survive challenges like COVID-19 and inflation. These platforms also create new job opportunities and contribute significantly to the U.S. economy. However, there are concerns that certain legislation targeting big tech could unintentionally harm small businesses. Experts suggest small businesses can start modernizing by adopting tools like social media and payment apps, while advocating for policies that support data access and workforce upskilling.

Takeaways

• 😀 86% of small businesses believe technology helped them survive COVID-19.
• 😀 Technology platforms are critical to small business growth and survival.
• 😀 Small businesses using technology grow faster, profit more, and hire more workers.
• 😀 Nearly 3 in 4 small businesses agree that technology helped them manage costs and supply chain issues during inflation.
• 😀 Technology platforms support nearly 100 million jobs and contribute $17 trillion to the U.S. economy annually.
• 😀 Social media is crucial for small businesses, with 92% finding new customers through it.
• 😀 Delivery apps have helped small businesses, particularly in the food and grocery sectors, grow their workforce by 73%.
• 😀 Payment apps enable small businesses to tap into the digital cashless economy, making transactions more convenient.
• 😀 80% of Americans used a payment app in the last month, helping small businesses access a broader customer base.
• 😀 Potential legislation targeting big tech, like privacy laws, could unintentionally harm small businesses by limiting data access.
• 😀 It's vital for Congress to pass a national privacy law that balances protections for consumers and small businesses alike.

Q & A

What is the key finding from the U.S. Chamber of Commerce report about small businesses using technology?

The report found that small businesses that use technology grow faster, profit more, and hire more workers compared to businesses that do not use technology.

How did technology help small businesses survive the challenges of COVID-19?

According to the findings, 86% of small businesses reported that technology played a crucial role in helping their businesses survive during the COVID-19 pandemic.

How has technology helped small businesses manage inflation and supply chain issues?

Nearly 3 in 4 small businesses believe that technology helped them limit cost increases and handle supply chain difficulties during times of inflation.

What are some specific examples of technology platforms supporting small businesses?

Examples include digital advertising, business software delivery, and delivery apps that connect businesses with consumers, supporting economic benefits and job creation.

How do social media and delivery apps help small businesses?

Social media helps small businesses find new customers, while delivery apps, particularly in sectors like restaurants and grocery stores, connect small businesses directly to consumers, creating new jobs.

What is the impact of payment apps on small businesses?

Payment apps enable small businesses to access the cashless economy, with 80% of Americans using them in the past month. This facilitates transactions, allowing businesses to operate more efficiently.

What role does technology play in job creation for small businesses?

Technology helps small businesses grow their workforce. In fact, 73% of small businesses using delivery apps reported an increase in their workforce.

What potential legislation could unintentionally harm small businesses?

Potential legislation aimed at big tech, such as privacy laws, could have unintended consequences, including limiting small businesses' access to their own data, which may harm their operations.

What kind of national policy is important for small businesses regarding privacy laws?

It is important that Congress passes a national privacy law that protects all Americans equally while also taking into account the needs of small businesses to access and use data effectively.

For small businesses still in the early stages of modernization, where should they start?

Small businesses should consider starting with social media for marketing and payment apps to facilitate digital transactions. These tools are straightforward and impactful in helping businesses modernize.