U.S. Small Businesses Embrace Technology Amid Economic Headwinds
- A. D. Siddiqui
- Dec 9, 2024
- 2 min read

This briefing document reviews the main themes and insights from the U.S. Chamber of Commerce Technology Engagement Center's report, Empowering Small Business: The Impact of Technology on U.S. Small Business. The report, based on a nationwide survey conducted in partnership with Teneo Research, explores the critical role of technology in helping small businesses navigate contemporary challenges and capitalize on growth opportunities.
Key Takeaways
Technology Adoption Is Nearly Universal: 99% of small businesses report using at least one technology platform, reflecting a steady increase over the past three years.
AI Use Is Surging: Generative AI adoption has nearly doubled since 2023, with 40% of small businesses now leveraging this powerful technology.
Technology Drives Growth: Small businesses utilizing a broader range of technology platforms demonstrate consistently higher growth in sales, profits, and employment compared to their less tech-savvy counterparts.
Combating Inflation with Technology: In the face of persistent inflation, 79% of small businesses credit technology with helping them avoid raising prices for consumers.
Technology Usage and Business Growth
The report highlights a strong correlation between technology adoption and business growth. Companies leveraging multiple technology platforms are more likely to have experienced growth in key areas:
Sales Growth: "Small businesses that leverage technology platforms are more likely to have experienced growth in sales and profits over the past year."
Profit Growth: "For the third year in a row companies that are utilizing a wide range of technologies are more likely to be growing than their non-tech-enabled peers."
Employment Growth: "Small businesses that leverage technology platforms are more likely to have… an increase in their workforce."
Furthermore, the report emphasizes the role of technology in mitigating the impact of inflation:
Cost Control: "As inflation remains the single most prevailing headwind for small businesses, nearly four in five small businesses report that technology platforms help them prevent passing on cost increases to consumers."
Supply Chain Resilience: "Nearly two-thirds have indicated that technology platforms enable them to mitigate supply chain difficulties."
The Rise of AI in Small Business
The 2024 report underscores the rapid rise of AI adoption among small businesses:
Generative AI Use Doubles: "AI use among small businesses is booming. Compared to 2023, generative AI use has nearly doubled to 40%."
Top AI Applications: "The most prevalent uses of AI are for marketing, developing customer insights, and communicating with customers."
AI Fuels Optimism: "91% of businesses actively using AI say it will help their business grow in the future."
The report showcases real-world examples of small businesses successfully leveraging AI:
Tiny House Coffee: Uses AI for marketing, equipment management, and raw material sourcing, allowing them to compete effectively with larger businesses.
SweetBio: A biotech company that utilizes generative AI to create educational materials for patients, streamlining patient education and enhancing their experience.
Despite the optimism surrounding AI, the report identifies key barriers to adoption:
Education and Awareness: Lack of understanding regarding AI's benefits remains a primary obstacle.
Compliance Concerns: Growing anxieties about navigating the evolving regulatory landscape surrounding AI.
Staffing Challenges: Difficulty in finding and retaining employees equipped with the necessary AI skills.