How Technology Plays a Role in Small Business Success

Summary

Jordan Crenshaw, Vice President of the U.S. Chamber of Commerce's Technology Engagement Center, discusses the vital role of technology in supporting small business growth and survival. Highlighting findings from a recent report, Crenshaw explains how tech platforms, such as digital advertising, business software, and payment apps, help small businesses thrive, especially during tough times like the pandemic and inflation. He also points out the benefits for women and minority-owned businesses. However, he cautions against potential legislation targeting big tech, which could unintentionally harm small businesses. Crenshaw emphasizes the need for balanced policy that supports innovation and inclusion.

Takeaways

• 😀 Technology platforms are essential for small business growth and survival, with 86% of small businesses stating that tech helped them through the pandemic.
• 😀 Nearly 75% of small businesses report that technology has helped them manage costs and overcome supply chain issues during inflation.
• 😀 Small businesses that use technology platforms, such as digital advertising, business software, and delivery apps, are seeing significant benefits, including job creation.
• 😀 In Florida, small businesses using technology contribute to 5 million jobs, and 83% of small business owners agree that tech helps them compete with larger companies.
• 😀 Small businesses that embrace technology are more likely to experience growth in sales, profits, and workforce expansion.
• 😀 Social media platforms have been crucial in helping small businesses reach new customers, with 92% of small businesses saying social media has helped them find new clientele.
• 😀 Delivery apps have been particularly beneficial for businesses like restaurants and grocery stores, with 73% of small businesses using delivery apps seeing growth in their workforce.
• 😀 Payment apps enable small businesses to engage in cashless transactions, with 80% of Americans having used a payment app in the past month.
• 😀 Minority-owned small businesses that are high adopters of technology have experienced higher sales growth compared to those using fewer tech platforms.
• 😀 Women-owned small businesses that embrace technology are able to hire more workers than those that do not use tech as extensively, showing how tech can foster inclusivity in entrepreneurship.

Q & A

What is the key finding of the report regarding technology's role in small business growth?

The report highlights that technology platforms are crucial for small business growth and survival. 86% of small businesses stated that technology helped them survive the pandemic, and nearly 75% agreed that it helped them manage costs and supply chain issues during times of inflation.

What specific technology tools are mentioned as supporting small businesses?

The technologies mentioned include digital advertising, business software, delivery apps, and payment apps. These tools help small businesses reach new customers, streamline operations, and compete with larger companies.

How have social media and delivery apps benefited small businesses?

Social media has helped small businesses find new customers, with 92% of small businesses reporting this benefit. Delivery apps have enabled businesses like restaurants and grocery stores to reach consumers and create new jobs, with 73% of businesses using delivery apps growing their workforce.

What role do payment apps play for small businesses?

Payment apps facilitate cashless transactions, which are crucial for businesses participating in an increasingly digital economy. These apps help small businesses, like food trucks, ensure that customers can pay without cash.

How has technology affected minority-owned small businesses?

The report found that minority-owned businesses that are high adopters of technology (using six or more platforms) experienced higher sales growth from 2020 to 2022 compared to those using fewer technologies.

What impact has technology had on women-owned small businesses?

Women-owned small businesses that adopted more technology were able to hire more workers compared to those who were less enthusiastic about technology adoption.

What potential issues could arise from privacy legislation for small businesses?

Privacy legislation, if not carefully crafted, could unintentionally harm small businesses. The report highlights that limiting access to data could significantly disrupt operations, as 80% of small businesses said it would harm their business.

What is the recommended policy action for Congress to support small businesses?

The report advocates for Congress to pass a national privacy bill that balances protection with business needs. Additionally, Congress should focus on policies that upskill the workforce and enable flexibility for workers in the gig economy.

How has technology improved entrepreneurial inclusion, especially for minority groups?

Technology has enhanced entrepreneurial inclusion by enabling minority-owned businesses to thrive. The study revealed that businesses using multiple tech platforms have outperformed those using fewer tools, showing the potential for technology to level the playing field.

What resources are available for those who want to learn more about this study?

For more information, individuals are encouraged to visit AmericanInnovators.com to learn about the study and the work being done by the U.S. Chamber of Commerce's Technology Engagement Center.