Washington DC (June 25, 2025) – National Federation of Independent Businesses (NFIB) New Release Small and Medium Enterprises and Technology Research. The report is based on a national survey of small business owners and provides insight into what types of technology they are and the speed at which new technologies are incorporated into business operations. The data focuses on small employers who are small businesses with at least one employee.
This study covers how small and medium-sized businesses incorporate technology in a variety of ways. This includes using new or significantly improved technologies, using artificial intelligence (AI), or using websites. Overall, despite its merits reputation for innovation, adopting new technology can often be challenging for many small businesses and can impact their ability to grow and compete.
Click to download NFIB SMEs and Technology Survey here.
“Small business owners are the top source of innovation in our country, but many small businesses struggle to keep up with technological advances,” he said. Holly Wade, executive director of the NFIB Research Center. “Using updated technology contributes to competitiveness and productivity. This report provides unique insight into the considerations small businesses of various sizes and industries encounter when adopting new technologies. This includes predicting the rapid surge in AI and how technology will affect current business operations and how it will affect future.”
The key findings are as follows:
The familiarity, use, and importance of new AI technologies
The rapid growth of AI technology has changed the way business owners work. However, the implementation of AI technology remains limited among the smallest companies. Most SMEs have not yet adopted AI technology in their businesses, but in general we expect it to evolve into a more important role in the industry and business operations.
- Currently, almost a quarter (24%) of all small employers use AI technology (ChatGpt, Copilot, Grammarly, Canva, Lunmen5, etc.) compared to 76% who do not. These figures ranged from 21% of single-digit employee companies to 48% of 50 or more employees, and were significantly different depending on the size of the company.
- 63% of all small employers believe that the use of AI technology in the industry will be somewhat important over the next five years. 12% reported being extremely important, 21% reported being moderately important, and 30% reported being mildly important. 15% reported it was not important at all, and 23% didn't know.
- 29% report using or using AI technology for communications (emails, notes, documents), and 27% reporting using it for marketing or advertising. 14% reported business or predictive analytics, 9% reported customer service, 4% reported accounting, 4% reported process automation, and a further 4% reported cybersecurity or fraud detection.
- Almost all small employers using AI technology (98%) report that their use has not changed in the number of employees in their business.
Use of new or significantly improved technologies
- Over half (57%) of all small employers have introduced new or significantly improved technologies (software, equipment, etc.) into their businesses within the past two years. Like AI, there was a wide range of intake. 51% of single-digit employee companies add new or significantly improved technologies, with 75% of employees companies with 50 or more.
- One reason small business owners choose to introduce new technology is to improve the market's competitiveness. Small business owners were asked if the technology introduced could stay ahead of the competition and stay competitive or keep up with it.
- 65% report that new technologies introduced will help them stay competitive. 14% reported that they could keep up with the competition, while 11% reported ahead of the competition.
- Most small business owners more or less evaluate themselves with their competitors when it comes to using technology. Almost half (48%) of small employers believe they have no overall technical advantage over their major competitors, but report benefits and 10% report disadvantage.
Use and Operation of the Website
- Overall, 82% of small employers have their own websites.
- Of the companies surveyed, 75% had websites with 1-9 employees, 90% of companies with 10-24 employees, 96% of companies with 25-49 employees, and 97% of companies with 50 or more employees.
- Of the SMEs that have a website, about fifth (19%) accept payments through the website, and 81% do not.
Methodology
The study was placed by email in a random sample of 20,000 SME owners from the NFIB membership database. The survey took place on the field from March 6, 2025 to March 31, 2025, with the first invitation on March 6th and a reminder on March 14th. A total of 521 respondents completed the survey.
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