Digital transformation: Survey finds lack of digital fluency in key areas, need for additional support

The coronavirus pandemic has forever changed consumer behavior and how business is done. Larger companies were able to capitalize on this seismic shift, leaving small businesses with fewer resources behind, particularly those owned by women and entrepreneurs of color. To address this challenge, Small Business Majority is conducting a series of surveys and other research to examine how small businesses have adapted to challenges brought on by the Covid-19 pandemic. 

This first survey specifically explores small business confidence in implementing digital tools and technologies, their digital literacy and their access to broadband. Additionally, the survey reveals the current state of small business growth and how this may impact their digital transformation. In the last quarter of 2022, small businesses experienced slight increases in revenue, expenses, and headcount, which points to a slow recovery for Main Street. A little less than half (45%) of small businesses noted that their revenue has increased, while more than half (56%) noted that their expenses have increased. Around 1 in 3 (33%) small businesses increased their headcount while more than half (51%) noted headcount stayed the same. A majority of small businesses (77%) are optimistic about their business prospects over the next six months, while only 12% are pessimistic.