Relationship shown between adopting new technologies and competitiveness in the marketplace.
Many small business owners, including those in the shed industry, are constantly looking for a way to stay ahead of the competition.
According to NFIB’s Small Business and Technology Survey, the use of updated technology affects production and opportunities.
“Small business owners are our nation’s top source of innovation, yet many small businesses struggle to keep up with technological advancements,” says Holly Wade, executive director of the NFIB Research Center.
“Use of updated technology contributes to competitiveness and productivity, and this report offers unique insight into the considerations small businesses of varying sizes and industries encounter when they adopt new technologies. This includes the rapid proliferation of AI (artificial intelligence) and how technology impacts business operations now and their anticipation of how it will impact them in the future.”
Key areas of interest include the usage of AI, technology development, and websites for small businesses.
There are significant challenges for small businesses when implementing new technologies, including upfront costs and a lack of resources. Larger businesses are far more likely to adopt new technologies to enhance productivity because of their greater access to resources, causing a notable divide between large and small businesses.
Key findings of the survey include:
- Twenty-four percent of small business owners currently use AI tools like ChatGPT, Grammarly, Canva, etc. to help with workflow or production.
- Sixty-three percent of small business owners believe the integration of AI will be important for their industry in the next five years, with 12 percent reporting it will be extremely important, 21 percent reporting it will be moderately important, 30 percent reporting it will be mildly important, 15 percent reporting it will be not at all important, and 23 percent reporting they don’t know.
- Small business owners reported AI had several benefits to their businesses. Thirty percent of owners reported increased productivity, 23 percent reported improved product and service quality, 8 percent reported lower operating costs, 5 percent reported increased revenue, and 4 percent reported increased sales.
- Nearly all small businesses currently using AI (98 percent) reported no change in the number of employees at their business.
- Fifty-seven percent of small businesses introduced new or improved technologies in their business in the last two years, with 51 percent of businesses with 1-9 employees using new technologies versus 75 percent for businesses with 50 or more employees.
- Sixty-five percent of small businesses reported that new technologies allowed them to stay competitive.
- Eighty-two percent of small businesses have their own website. Among businesses with a website, only 19 percent accept payments through their website.
The survey was consistent with its data that small businesses tend to use specific tools like AI far less than bigger companies, and that was reflected in the current and future projections on its importance for small businesses.
Businesses with at least 50 employees felt that the utilization of AI was more important by a wide margin, with 69 percent reporting AI was important to some degree compared to just 37 percent for businesses with 1-9 employees.
The NFIB survey also finds that small businesses with fewer employees were less likely to have improved software recently, have a website, and accept payments through their website, which is consistent with the status quo.
ARTIFICIAL INTELLIGENCE
Something to keep in mind, according to SCORE, is that although small businesses often have limited resources, AI can help by making certain processes more efficient.
“By automating repetitive tasks, AI can streamline workflows and bolster employee productivity,” says SCORE mentor Gray Poehler. “For example, AI-powered sales automation can analyze customer data, predict potential leads, and automate outreach. This allows sales teams, especially those with limited bandwidth or capacity, to focus less on manual prospecting efforts and more on nurturing high-priority leads.”
In addition to streamlining processes, AI can also draft written content for your business. “With AI writing tools, creatives can leverage pre-designed email templates tailored to different stages of the client’s journey,” explains SCORE mentor Chloe Clark. “From welcome emails that set the tone for collaboration to daily or weekly project updates that keep clients informed about progress, these emails ensure that communication remains seamless and proactive.”
It’s important to remember that AI can make mistakes, so you’ll need to review the final product for errors before moving forward.
SCORE mentor Kathryn Bardins recommends thinking of AI as just one aspect of your overall strategy: “This is another new tool in your marketing toolbox and should be considered as only a tool—not the entirety of your efforts.”
