New Scientific Opinion Poll: Small Business Owners Experience Unlevel Playing Field with Large Companies and Big Tech
Poll finds that the majority of small businesses have been negatively impacted by anti-competitive business practices and support updates to current laws that will level the playing field
Washington, D.C. - Today, Small Business Majority released a scientific opinion poll that reveals most small business owners seek a more equitable playing field with larger competitors, particularly on digital platforms and in the area of contracts and agreements.
Even before the pandemic, large corporations maintained a stranglehold across all markets and industries. When many small businesses pivoted to online platforms during the pandemic to keep their businesses afloat, they were exposed to further competitive inequities. Following are key findings from the report, outlining some of those unfair practices:
- Small businesses want a more equitable playing field with their larger competitors: 83% said larger companies have the resources to drown small businesses out with their market power
- Small businesses increasingly rely on online platforms for their businesses: 30% use Facebook's marketplace as part of their marketing strategy
- Standard big business practices are hurting smaller firms: 35% said they had been affected by self-preferencing, while 55% believe that it's an issue; 34% said they had been negatively affected by predatory pricing, while 55% believe that it's an issue
- Small businesses are impacted by unfair agreements and terms with large companies: 41% said they had been negatively affected by differential pricing based on their size
"I never considered myself an entrepreneur, but when I decided to pursue entrepreneurship after losing my job during the pandemic, I knew that being a business owner was part of my destiny," said Jasmine Johnson, Owner and Inventor, ParentCo Electrical Outlet Covers, Orland Hills, Ill. "I've had to overcome barriers on my journey to attain the American dream and build generational wealth, mostly from large technology platforms that practice unapologetic monopolization. Big tech companies like Amazon have the resources to test different marketing strategies and stand by calmly as their revenue fluctuates. Us small guys don't have that luxury. We have to pay to win. But we have no chance of winning if the competition isn't playing fair."
The responses of 500 small business owners nationwide reveal that myriad anti-competitive practices are harming our nation's entrepreneurs. Larger businesses are using their market power to stifle smaller businesses -- thus putting them at a distinct competitive disadvantage. Smaller firms support policies to create a more equitable environment in which to do business. Bipartisan legislation such as the American Innovation and Choice Online Act exemplifies the strong measures needed to address monopolization holding our nation's job creators and innovators back.
"Small businesses are still struggling to recover from the effects of the pandemic," said John Arensmeyer, Founder & CEO, Small Business Majority. "Nearly 4 in 10 small businesses say their revenue has declined since last year, and only half think their business will survive indefinitely without additional funding or market changes. Promoting a level playing field for small businesses, particularly in under-resourced communities, and implementing new solutions to address monopolistic practices is critical to continued economic growth."
This poll reflects a national survey of 500 small business owners with up to 100 employees conducted by Lake Research Partners for Small Business Majority. To read the full report, visit: https://bit.ly/SmallBusinessMajorityFairCompetitionPoll
About Small Business Majority
Small Business Majority is a national small business organization that empowers America's diverse entrepreneurs to build a thriving and equitable economy. We engage our network of more than 85,000 small businesses and 1,500 business and community organizations to deliver resources to entrepreneurs and advocate for public policy solutions that promote inclusive small business growth. Our work is bolstered by extensive research and deep connections with the small business community that enable us to educate stakeholders about key issues impacting America’s entrepreneurs, with a special focus on the smallest businesses and those facing systemic inequities. Learn more about us on our website and follow us on Twitter, Facebook and Instagram.