Small Business Growth Despite Labor Challenges: Embracing Digital Tools and AI Solutions
| In today’s fast-paced business world, small business owners are finding ways to grow and thrive despite facing significant labor challenges. A recent survey of 1,000 small business owners delves into the complexities of operating in the 2024 macroeconomic environment. From competition and inflation to supply chain disruptions and labor shortages, business owners are navigating a host of stressors while embracing the future with optimism. According to Shruti Patel, Executive VP and Chief Product Officer at US Bank, “We found that most small business owners continue to show optimism for the future, with 90% rating their business as successful—a 4% increase from 2023.” Notably, 73% of owners report that their business has grown over the past year, with even higher growth rates among Black (84%) and Hispanic (80%) owners. However, labor shortages remain a pressing concern. Over half (52%) of small businesses report being understaffed, and 56% have had to postpone strategic growth initiatives as a result. Despite these setbacks, small business owners are turning to digital tools and AI-driven solutions to manage operations more efficiently and reduce the strain on their workforce. By automating routine tasks and improving operational efficiency, AI and automation tools are reshaping how businesses handle everything from customer service to inventory management. While many owners are excited by the potential of these technologies, there’s also some apprehension about the long-term impact on jobs and employee engagement. Still, as more businesses adopt digital tools, it’s clear that they will play an increasingly critical role in the future success of small businesses. From easing day-to-day tasks to enabling growth in challenging times, the embrace of technology is a sign of resilience and forward-thinking among today’s entrepreneurs. Top 5 Stressors for Small Business Owners:Competition – 73%Economic Environment – 71%Inflation and Increased Costs – 65%Supply Chain Disruptions – 47%Funding Challenges – 42% Even amid these challenges, the ability of small business owners to adapt and grow is evident, making them a vital part of the economy. By continuing to leverage digital solutions, these businesses are positioning themselves for sustained success in the future. Read the complete report here. |
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