Empowering Small Businesses: The Impact of Technology on U.S. Small Businesses (2nd Edition)

Take-out

• Small businesses are all-in: 95% of small businesses in the United States use at least one technology platform, and the use of high technology correlates with increased sales, employment, and profits.
• Many companies are already using AI. Almost one in four small and medium-sized businesses have implemented artificial intelligence (AI) to improve marketing and communications performance. AI users had a 12 point increase in the likelihood of increased profits compared to non-AI users.
• Tired of regulation: Despite the benefits of technology, about half of small business owners express concerns about potential technology regulations and increased costs and litigation resulting from out-of-state regulations.

U.S. Chamber of Commerce Latest Edition Empower small businesses This report explores how different technology platforms play a critical role in helping small businesses overcome challenges such as labor shortages and inflation, and how small businesses that leverage technology can outperform their peers. and are more optimistic about the future. Companies are also looking to add emerging technologies such as AI to their arsenal of digital tools to compete and expand their businesses.

This continues the trends identified in the first edition of this report, released in 2022, showing that during the pandemic, technology has helped small businesses support nearly 100 million jobs and add $17.7 trillion to the U.S. economy. 86% of SMEs said the technology was 'theirs'. life line. ”

“Small businesses continue to almost universally deploy a wide range of technology platforms, a slight increase from 2022, with 95% of U.S. small business owners using at least one technology platform to run their business. They report that they are using it.''

• 87%
  

  Number of small and medium-sized businesses reporting increased efficiency due to technology platforms

• Quarter
  

  Number of small businesses using artificial intelligence

Policy recommendations

Without appropriate policies to foster a virtuous cycle of technology development and adoption, SMEs may lose their ability to adapt and face the new challenges of the 21st century economy. C_TEC offers the following recommendations to policymakers to help U.S. small businesses realize their potential through digital tools and platforms.

• Enact sensible national data privacy laws. As noted in this report, most small businesses are concerned about having to comply with out-of-state technology regulations. 7 in 10 small businesses say restricting access to data can negatively impact their operations, ensuring equal protection for all Americans and preserving the benefits of the modern digital economy. It is critical that Congress pass a national privacy law.
• Get AI regulations right. With nearly a quarter of small businesses already using and seeing value in AI, Congress must ensure America can stay competitive and foster innovation while reducing risk. be. In March 2023, the U.S. Chamber of Commerce’s Committee on AI Competitiveness, Inclusion, and Innovation emphasizes the need for a risk-based approach to AI regulation, rather than one-size-fits-all bans, moratoriums, and rules. A report has been published.
• Improve the skills of your digital workforce and education. ofGovernments need to invest in science, technology, engineering and mathematics (“STEM”) and computer science education to promote a 21st century workforce, including small business owners, and prepare the next generation of digital tool developers there is.
• Prevents exposure to excessive responsibility.In 1996, Congress enacted Section 230 of the Communications Act, which generally prohibits interactive computer services from being responsible for the activities of third-party content. Since 1996, the Internet and data-driven economy has flourished. Congress should reject calls to completely repeal this landmark law.
• Adopt a fair competition policy. Some argue that America's long-standing antitrust laws should be used to specifically target the country's technology sector. Congress should refrain from passing competition laws that single out companies for enforcement and deprive them of due process.
• Promote the gig economy. As outlined in the report, small and medium-sized businesses that use third-party delivery platforms benefit in terms of growth, employment, and revenue.. Governments should avoid imposing unnecessary restrictions on flexible working arrangementsor prevent app-based delivery companies from communicating valuable, flexible revenue opportunities to the public.
• Let's connect all Americans. Broadband access is the foundation for small businesses to use most digital tools and connect with consumers across the country. To complement private sector efforts, policymakers should make targeted investments in high-speed broadband in underserved areas and make broadband affordable for low-income Americans. should be dealt with appropriately. To make the most of these investments, policymakers must streamline permitting requirements and avoid costly regulatory obligations, such as utility-style rules for broadband and domestic content requirements.
• Modernize and digitize government. 82% of small businesses believe the government should invest in IT modernization to streamline and improve critical small business needs such as permitting and professional licensing. By investing in upgraded IT, governments can better serve their constituents and save money in the long run.