Empowering Small Business: The Impact of Technology on U.S. Small Business (2023)
U.S. Chamber of Commerce
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New Report Finds That High Technology Adoption—Including Artificial Intelligence—Leads to Growth and Optimism Among U.S. Small Businesses
Even as they navigate the challenges of a post-pandemic economy, small businesses are embracing technology, with 95% using at least one technology platform. This adoption correlates with growth in sales, employment, and profits.
Key Takeaways:
- Technology Embrace: 95% of U.S. small businesses use at least one tech platform, with high-tech usage driving growth in sales, employment, and profits.
- AI Adoption: Almost one in four small businesses have adopted Artificial Intelligence (AI), leading to improved performance in marketing and communications, and a 12-point increase in profit growth likelihood compared to non-AI users.
- Regulatory Concerns: Despite the benefits, half of small business owners express concerns over potential tech regulations, citing increased costs and litigation from out-of-state regulations.
Report Findings:
The latest edition of the U.S. Chamber’s Empowering Small Business report highlights the critical role technology platforms play in helping small businesses overcome challenges like workforce shortages and inflation. Small businesses that embrace tech are more optimistic about the future and outperform their peers. Companies are also turning to emerging technologies like AI to enhance their digital toolsets for competition and expansion.
This reflects a trend revealed in the 2022 inaugural edition, which showed technology helping small businesses support approximately 100 million jobs and contribute $17.7 trillion to the U.S. economy during the pandemic, with 86% calling tech their "lifeline."
- Efficiency: 87% of small businesses reported increased efficiency due to technology platforms.
- AI Usage: 1 in 4 small businesses use artificial intelligence.
Policy Recommendations:
To ensure small businesses realize their potential through digital tools, the report offers the following recommendations to policymakers:
- Enact Smart National Data Privacy Legislation: Addressing concerns about out-of-state tech regulations, 70% of small businesses believe limiting data access could harm operations. A national privacy law that protects all Americans equally is vital for a modern digital economy.
- Get AI Regulations Right: With nearly one-quarter of small businesses already using AI, Congress should promote innovation while mitigating risk to maintain U.S. competitiveness.