Rakesh Raman Holding a Digital Marketing Program for Business Leaders in India
Amid growing questions on the effect large technology companies are having on America’s small businesses, a Deloitte study has found that 85 percent of U.S. small businesses report that digital tools are critical to their success.
The study, commissioned by the Connected Commerce Council (3C), also found that digitally empowered small businesses perform better financially, experience more employment growth, and are better able to compete in a global marketplace.
Deloitte acknowledged that additional training and education could help small businesses scale, which provides an opportunity for the Small Business Administration to support U.S. small business growth.
Deloitte Study Takeaways
- 85 percent of small businesses report that digital tools help their business.
- Small businesses that use digital tools are 3 times more likely to experience customer growth, which tends to be twice as high.
- Small businesses that use digital tools are 2 times as profitable.
- 90 percent of all small businesses believe that digital tools have fostered innovation in their business, particularly in entering new markets and communicating with customers.
Key Transition Barriers
- 45 percent cited access to training and education as a critical concern
- 31 percent cited privacy and security concerns
The Deloitte study emphasized the role small businesses play in the U.S. economy, employing half of the U.S. private workforce and making up for 45 percent of U.S. GDP. Additionally, 3C highlighted how digital tools empower small businesses to help the U.S. maintain economic dominance and its leadership in technological innovation.
The Deloitte researchers found that 85 percent of digitalized small businesses have enhanced their business performance, and are five times more likely to reach new international customers.
With an expanded international reach, the study underscored how small businesses help make the U.S. more competitive in the global economy and position America as a worldwide leader in innovation. However, the study also shows that there are opportunities for the federal government to address barriers that still exist for small businesses.