Understanding today's small business technology solutions and trends

Small businesses can have big goals that can require the use of the best technology and tools to drive customer satisfaction and business performance. To help you better understand how small businesses are navigating a complex economic and technological landscape, the 2023 Verizon Business State of Small Business Survey collected insight from business owners and decision-makers about artificial intelligence (AI), cybersecurity, remote work, and more. Based on their responses, here are the top four small business technology trends you need to know about.

AI tools for small business: AI comes to small and medium businesses

One of the most important new small business tools to emerge over the past year was the rise of artificial intelligence. While only 14% say they currently use AI,¹ small businesses see the benefit; 35% believe that AI can help them overcome workforce challenges due to reduced headcount, while 43% think it will help them generate additional revenue streams.² However, almost half (45%) are anxious about AI and how they will integrate it into their business, along with any cybersecurity risks associated with AI (43%).³

As small businesses continue to grapple with ever-increasing amounts of business and customer data, they can gain a competitive advantage by knowing how to use AI to process, analyze and surface actionable insights to power their decision-making. At the same time, they are right to be cautious. With the AI landscape still in its infancy, small businesses should strive to ensure that whatever solution they select protects their business, employees, and customers from any potential risks.

Staying connected, overlooking security

Reliable connectivity is the backbone for ensuring growth, powering operations, and staying connected to customers. It's no wonder then that upgrading their internet connection remains a critical initiative, with upgrading bandwidth (53%), increasing internet speed (51%), and enhancing wireless access (47%) among the top small business technology investments made over the last year.⁴

However, their commitment to cybersecurity has not kept pace, with only 33% saying they've invested in new small business tools to ensure security. In addition, only 36% say they provide employee training on cybersecurity practices and 50% agree they have the in-house expertise required to protect the business from cyber risk.⁵

Building brands with social media

Social media continues to be a small business technology platform companies use to build closer customer relationships. More than half (56%) use social media to increase customer engagement and online traffic, while 50% use it to offer sales or deals to attract new customers. Nearly a third (31%) now use social media as a virtual storefront, allowing customers to shop and buy without leaving their social media app.⁶

Thanks to its massive user base, Facebook is the social media platform of choice, with 49% of small businesses either using or increasing their usage in the past year. The runner-ups include Instagram (39%), LinkedIn (27%), TikTok (25%), and X, formerly known as Twitter, (25%).⁷

Regardless of which platforms they prefer, small businesses will continue to rely on the power of social media to humanize their brand, build communities, and engage with customers. Now more than ever, people want a personal connection with the brands they support. By leveraging social media, small businesses can create this connection while reaching a worldwide audience.

Managing remote and hybrid work

While many employees are now back in the office, small businesses know that the future of work will also include remote or hybrid options. For some, it's a simple matter of being able to compete for top talent, with 36% saying they worry they'll lose employees to competitors who offer remote work as an option.⁸

As a result, 62% say they already or are considering offering flexible working arrangements to employees as a way to drive new hires and retain valued staff.⁹ To facilitate this flexibility, 27% invested in new small business tools to meet demands created by remote and hybrid work.¹⁰

By offering this flexibility, small businesses can demonstrate their commitment to creating a winning employee experience, while at the same time helping businesses tap a broader talent pool and potentially reduce their real estate and overhead costs.

Understanding your small business technology options

From harnessing the power of AI and social media to investing in small business tools and infrastructure to ensure connectivity in a remote work world, technology can help you overcome challenges, leverage opportunities, and remain competitive.

Staying informed is the key to adapting to a rapidly evolving landscape. To learn more about how small businesses are using new technology and tools to stay ahead, download the full Verizon Business Fourth Annual State of Small Business Survey. Learn more about how Verizon can help small businesses stay ahead.

The author of this content is a paid contributor for Verizon.