Small- and medium-sized businesses (SMBs) are prioritizing technology to a greater degree than they have in the past three years, according to a report from Verizon Business. The new study confirmed that they are investing in “both foundational and emerging” technologies.
For example, 37% of SMBs are subscribed to a 5G-enabled fixed-line business internet service and 34% use 5G networks to move contactless payments in the retail sector. Respondents from retail, restaurant, and food/beverage industries doubled their use of 5G networks for inventory processing and tracking in the past year, according to the report form Verizon’s fifth annual “State of Small Business Survey.”
SMBs also have invested in better connectivity over the past 12 months. Two-thirds (66%) of respondents in the study indicated that their business added or upgraded its internet connection to provide greater bandwidth and 61% upgraded routers or extenders to improve their wireless signal.
The proportion of SMBs using artificial intelligence (AI) increased from 14% in 2023 to 39% 2024 — more than double — primarily because of the familiarity with and accessibility of AI for business applications, the study explained.
“Small business owners are getting the hang of AI, discovering how it can automate time-consuming tasks and enabling them to focus more on their core business operations,” said Aparna Khurjekar, chief revenue officer, business markets and SaaS, at Verizon Business, about the report.
A relevant finding for the broadband industry: two-thirds (67%) of SMBs either added or upgraded their high-speed internet plans in the past year. More than one-third (38%) included digital capabilities to assist their transition to online operations. Verizon noted that as more SMBs do more business online, their technology investments have increased to support that process. The report found that 38% of small- and medium-sized businesses added online/digital operations in the past year.
It also discovered that more than eight in 10 companies use Facebook to promote their products and services and engage with customers. Nearly four in 10 (39%) operate social media “storefronts.”
In the context of the general economy, Verizon’s survey verified that despite broader economic anxiety, SMBs are optimistic about the near future. The majority of SMBs (83%) are concerned about how rising inflation will distress their business. However, nearly six in 10 (59%) expect their business to be in a “better economic position next year,” Verizon described in the report, which was based on data from 621 small- and medium-sized businesses.
“Despite economic and financial concerns, they’re still investing in faster internet, AI tools and social commerce because they understand how these technologies are crucial for their success,” Khurjekar said.
Telecompetitor recently reported on a related study, which purported that a majority of SMBs who are telecommunications customers, seek out AI-powered services from their providers.
