Small businesses are increasingly turning to technology in order to overcome modern business challenges. Technology allows SMBs to do more work with fewer resources and alleviates manual work, helping them focus on growth.
We combed through the plethora of data out there about the current SMB landscape to share an analysis of trends and practical next steps. Here are five surprising things we learned about SMBs and their use of technology.
With challenges like inflation, expensive financing, and tight labor market, SMB owners are understandably turning to technology to push their limited resources further.
It’s the amount of investment SMB owners are making relative to other business sizes that’s surprising: SMBs made up over half of the world’s $370 billion technology spending. SMBs outspent their larger counterparts in several technology categories, including wireline, wireless and technology devices, lagging behind only in software.
Though SMBs are already outspending their larger counterparts in technology, SMB owners don’t seem to be slowing down their investing. Many businesses are looking for technology that can directly impact their bottom line by reducing labor costs and increasing operating efficiency. In a 2024 survey of American small business owners, 50% said they were likely to allocate more of their budget to technology and infrastructure.
Owners are most interested in artificial intelligence (50%), productivity and collaboration tools (41%), and communications technology (34%).
AI-powered solutions can be incredibly useful to businesses, as they quickly complete tasks without needing to hire additional employees. AI can be useful for improving tasks like generating content, taking notes, managing finances, and customer service. Interest in AI has grown among small businesses, with one survey finding that nearly three-quarters of small businesses would like to explore using AI. Despite this interest, only about a quarter (26%) have implemented AI.
Of companies that have taken the step to try AI, most implement it for social media (52%), generative content creation (44%), and email marketing (41%).
SMBs who have taken the jump into AI report that AI is already making a difference. Over half of companies (60%) say it has saved them time and added efficiency to their work. AI can be applied in many areas of business, like accounting, cybersecurity, sales and marketing, logistics, and IT, making it versatile with wide reaching impact. With its ability to quickly process large quantities of data, AI can provide important insights into business processes, customers and growth opportunities, while taking over repetitive tasks to free up time for employees.
Plus, more than a quarter of SMBs using AI and automation expect it will save them at least $5,000 in 2024.
Businesses who do implement technology are often getting the competitive edge they need: One survey found that early technology adopters were more likely to report achieving business objectives and growing revenue than those who were slower to adopt technology.
Implementing technology is important for adding efficiencies and reducing overall workload. Automating your payments process is one of the easiest ways technology can reduce manual workload.
Plooto’s all-in-one platform automated your entire payables and receivables process, meaning less effort and fewer errors, plus more time to focus on the bigger picture.
With two-way syncing to your accounting software you can benefit from automatic reconciliation while accessing better cash control. See how Plooto’s automation can transform your finances today with a free, 30-day trial.