NEW SBE COUNCIL SURVEY: Small Businesses Deepen Tech Investment and Use

By SBE Council at 8 April, 2025, 3:03 pm

AI and Express Checkout Fuel Growth, Tech Platforms Critical, Confident About Trump’s Tech Policies

FOR IMMEDIATE RELEASE

Washington, D.C. – Small businesses are leaning heavily into innovative technologies to drive growth, productivity and competitiveness, according to new survey results released today by the Small Business & Entrepreneurship Council (SBE Council). The Small Business Technology Use Survey 2025, conducted by TechnoMetrica for SBE Council, reveals that small business owners and their employees are enthusiastic adopters and users of artificial intelligence (AI) tools, social media and technology platforms, and e-payments systems. Moreover, small business owners embrace the benefits of pro-innovation policies announced by the Trump Administration to supercharge the momentum behind U.S. global leadership in AI and tech innovation.

“Small business owners are taking charge of their future through strategic investments in technology – especially AI – and they want an environment that supports investment and innovation,” said SBE Council President & CEO Karen Kerrigan.

Winning the AI Race: Most small business owners – 82% – believe winning the global AI race is essential to the future of the U.S. economy, and 62% express confidence in President Donald Trump’s leadership in this critical area. Support is also strong for extending the Trump tax cuts, which 72% of small business owners say is critical for fueling the innovative growth of their businesses.

Kerrigan added:

“The pro-growth and pro-investment tax policies being advanced in Congress and supported by President Trump are critical to innovative growth and global tech leadership. Our survey underscores the importance of AI and technology tools and how they are helping small businesses unlock innovation and new revenues, strengthen customer engagement, and keep prices steady for consumers, even as high costs and workforce challenges remain pressing concerns. Extending tax relief and investment incentives via the reconciliation package that Congress is advancing is vital to the virtuous cycle of American innovation and by extension to small businesses and our economy.”

AI Investment is Robust: According to the survey, small-business investment in AI tools and solutions will be strong over the next twelve months: 96% of small business owners who have deployed AI in their businesses will continue investments – 70% plan to increase their spend, and 26% will maintain their current levels of investment.

AI Use Across Business Functions, Employee Response is Positive, AI Critical to Small Business Competitiveness

The survey finds 58% of small businesses are actively deploying AI tools, with a large percentage (82%) reporting they have adopted AI within the past two years and 35% in the past six to twelve months.

The most common uses include: content writing and creation (43%), image creation including presentation and branding materials (37%), e-mail marketing automation (36%), social media management (32%), customer support (30%), financial management (28%), and cybersecurity (27%). Small business owners are using AI tools for a wide variety of needs across their businesses.

POPULAR AI APPLICATIONS USED BY SMALL BUSINESS OWNERS

The median annual spend on AI by small businesses is just under $1,000.

AI ANNUAL INVESTMENT SPEND BY SMALL BUSINESSES

Nearly all small-business users – 91% – say AI tools are vital to their competitiveness. In addition, small business owners report that employee acceptance and use of AI has been a positive experience – 81% report that employee response to and engagement with AI tools has been constructive. Only 2% report a negative response, while 17% say it has been “neutral.”

The Virtuous Cycle of Reinvestment: Small businesses are reinvesting AI-driven savings into growth areas: 44% have improved customer engagement and practices, 37% are exploring new growth opportunities, 36% report AI helps keep prices stable, and 33% are using the savings to invest in new technologies and equipment. One in four (24%) have increased wages and benefits as a result of savings.

WHERE SMALL BUSINESSES ARE INVESTING AI-DRIVEN SAVINGS

“Small business owners have found that AI tools are practical, affordable and powerful. AI is helping entrepreneurs thrive and compete in a challenging environment. The Trump Administration’s focus on supporting AI innovation and reclaiming U.S. tech leadership not only boosts the competitiveness of our nation’s small businesses, it will bolster the many entrepreneurs in the tech sector who are creating new tools,” said Kerrigan.

Express Checkout Tools Deliver Results and Optimism

More than half (53%) of small businesses use express checkout services to process online payments, and 94% of those users say the tool contributes to their success. Nearly half report that express checkout drives more than 30% of their total sales – with a median share of 28.8% – and 77% expect that number to grow in 2025.

Kerrigan noted that an expansive rulemaking finalized by the Consumer Financial Protection Bureau (CFPB) during the Biden Administration threatens the convenience and efficiency of such online payment tools for consumers and small businesses. Therefore, current efforts in the Congress to invalidate the new regulation are welcome.

“The convenience and efficiency of online payments – like express checkout – are valued by consumers and allow small businesses to better compete with bigger businesses. The CFPB’s unnecessary regulation is an overreach, as regulators failed to identify consequential problems. Thankfully, a resolution passed the Senate and is poised for action in the House to nullify the rule, which will preserve the benefits of express checkout for small businesses. It will also encourage more innovation in the payments area moving forward,” said Kerrigan.

Advertising Shifts Continue: Word-of-Mouth and Social Media Take Center Stage

Word-of-mouth marketing (61%) and social media marketing (57%) and are now the dominant advertising strategies for small firms, far ahead of “traditional” media like print (12%), TV (9%), and radio (9%).

Facebook, Instagram, YouTube, TikTok, LinkedIn and Amazon are the top platforms identified by small business owners as the most effective for branding and revenue generation. The median share of sales from social and e-commerce platforms is 23.5%, with 21% of firms reporting that these platforms account for more than half their revenue.

“Social media and technology platforms continue to be a lifeline for small businesses – both in brand-building and generating meaningful sales. They have become a key part of a multi-channel strategy that helps small businesses meet customers where they are, and to pivot quickly if needed. The ecosystem is incredibly diverse, and small businesses are leveraging every available tool to respond to the market and changing customer needs,” said Kerrigan.

ADVERTISING TECHNIQUES DRIVING HIGHEST ROI FOR SMALL BUSINESSES

TikTok’s Future Important to U.S. Small Businesses

As noted in the survey, TikTok is a top-five “most important” platform identified by small business owners for branding and income generation – 26% of respondents identified the platform as such in the survey. Kerrigan pointed out that the use and effectiveness of TikTok has steadily grown over the past eighteen months for small businesses, and efforts to reach a deal to keep this tool in the U.S. social media ecosystem is important to America’s creators and small businesses across industries.

In a Small Business Check Up Survey in September 2023, 17% of small business owners identified TikTok as the most effective platform for branding and income generation. That jumped to 26% in the current survey.

“It will be good news for U.S. small businesses when a final deal to bring TikTok under American ownership is announced. Still, small business owners are adapting and testing new tools, which is always a good thing to make sure their businesses are not missing out on other channels and opportunities to drive new sales and customer engagement,” added Kerrigan.

MOST IMPORTANT PLATFORMS FOR BRANDING AND INCOME GENERATION

Amazon: An Important Part of the Multi-Channel Sales Ecosystem for Small Sellers – 92% Report Amazon Pricing is Fair

According to the survey, just over a quarter of small businesses (26%) sell on Amazon. This represents an increase from the 22% reported in a December 2023 SBE Council Small Business Check Up Survey. These small sellers report a median profit margin of 28.5%. Nearly half (47%) reporting their profit margins on Amazon are better than other sales channels, and 41% saying their profit margins are about the same as other sales channels.

Overwhelmingly, small sellers are pleased with their Amazon partnership, 92% say Amazon pricing is fair. Moreover, 86% believe the company provides significant support for small sellers, such as branding and marketing tools. Nearly all Amazon sellers use additional sales channels – including social media (60%), their own websites (55%), and marketplaces like Etsy and eBay (37%), or in-person events such as farmers markets, special events, community fairs, or seasonal/holiday expos (35%).

AMAZON SELLERS ARE MULTI-CHANNEL SELLERS: OTHER TOP CHANNELS THEY USE:

Nearly three-quarters (73%) of Amazon small sellers report that less than 30% of their total sales come from Amazon. Only 9% of small sellers say more than 50% of their sales are generated from the platform. The most common sales share range is 11% to 15%, reported by 23% of respondents. The median share of sales among small sellers via Amazon is 22.9%.

“Small business owners recognize the value of Amazon and its role in a multi-sales channel ecosystem. Amazon small sellers are generating solid sales with healthy margins. This cuts against FTC assertions in their lawsuit against Amazon, which claims small sellers are being unfairly treated. Moreover, most of the sales generated by most small sellers are generated outside of Amazon. If Amazon was such a bad partner, wouldn’t these small sellers ditch the platform in favor of the other sales channels? The lawsuit makes no sense,” observed Kerrigan.

About the Survey

The Small Business Technology Use Survey 2025 was conducted online by TechnoMetrica for SBE Council between March 12-19, 2025. The national sample of 532 small business owners (firms with 2-99 employees) carries a credibility interval of +/- 4.3 percentage points.

Access the complete survey findings here.

CONTACT:

KAREN KERRIGAN, kkerrigan@sbecouncil.org

RAYMOND KEATING: rkeating@sbecouncil.org

SBE Council is a nonpartisan advocacy, research and education organization dedicated to protecting small business and promoting entrepreneurship. For nearly 30 years, SBE Council has advanced a range of private sector and public policy initiatives to strengthen the ecosystem for strong startup activity and small business growth.

Visit www.sbecouncil.org for additional information. X: @SBECouncil

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