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How Technology Affects Small Businesses

Updated: Jan 16, 2023

Ever since the invention of technology almost two million years ago, everything has changed. The invention and the development of technology over the years have brought about drastic changes in the way we live our lives today. The first ever technological invention was a chopping tool made from stone, and the latest inventions are robots that can act almost like humans themselves. Therefore, it is safe to say that technology affects all things around us. In the same way, it affects all the small businesses as well that have taken a surge during the pandemic times.


Despite becoming a big hit during the early stages of COVID-19, small businesses also became the sole form of income for many around the world. With the entire world shutting down and coming to a halt, numerous people lost their jobs and were forced to stay home to tackle this virus that had infected and taken the lives of almost 3 million people, as reported by the World Health Organization.


With the help and establishment of small businesses, many families have managed to survive their toughest times. 93% of business owners have reported that their business runs more efficiently when they take the help of technology. Compared to other small firms, small businesses that use technology expand more quickly, make more money, and hire more employees. These are some of the main conclusions of a recent U.S. Chamber of Commerce report.


In addition to these benefits of having a technologically advanced business, here is how else technology affects these small businesses.


1. A space to share and collaborate

Online applications, such as E-mail and online messenger tools, help small business owners and their employees communicate with each other, their clients, and external vendors easily. Communication takes less time and is more efficient when both parties have a place to share their thoughts and ideas and work on them together. Web-based project management tools, such as Smartsheet, Project Manager.com, and Miro provide a platform for collaboration where all collaborators can work together and keep track of all tasks increasing productivity and efficiency.


2. Provides a flexible work environment

With the use of technology, small business owners and their staff members can operate in an office setting, from home, while traveling, or even from another nation. Technology can help firms achieve a competitive edge in the global marketplace by enabling small business owners to hire talent from all over the world. In addition to providing a flexible environment, this also creates a diverse workplace because people from all over the world may come together to work in the same place.


3. Reduces operating costs

The use of technology can help small business owners cut costs. A company may automate back-log office tasks like record keeping, accounting, and payroll with the help of basic business software. Field representatives and people working in home offices can communicate live by implementing mobile technology. For instance, field representatives can utilize mobile apps to record daily expenses as they occur and have them connect with accounting software at the office immediately by syncing the linked accounts on both the office and the employee’s devices.


4. Enhances customer relationships

Businesses involving technology have more chances of making long-term, good relationships with their customers. Through more consumer communication, technology enables organizations to provide better customer service. Companies can collect data to ensure a great experience, keep customers informed with personalized or automated messaging, and provide additional accessibility with round-the-clock digital service.


Businesses expand through marketing outreach, and technology has transformed the marketing sector. In the past, small companies relied on newspaper advertisements or billboards at the side of the road. They now have access to considerably more potent tools for expanding their firm. Businesses may engage with a specific audience and form better relationships with them to ensure that they are returning again. This has been made possible by the numerous social media sites that also help in marketing the business, including influencer marketing and social media advertisements. While frequently costing much less and producing greater results than traditional advertising, digital marketing is another aspect of technology that yields greater benefits for small businesses and their owners.


5. More security for clientele information

Business owners can use technology to build secure environments for storing delicate and sensitive customer or business data. Many forms of business technology and software are user-friendly, enabling business owners with only minor knowledge of information technology to make the most of their resources. Businesses can secure their data by enabling data encryption. To prevent unwanted parties from accessing the data, every firm working with extremely sensitive data should think about encrypting the data. Data is encoded by cryptographers using intricate algorithms and ciphers to prevent theft or exposure.


These are only some of the ways in which technology has helped small businesses grow. When implemented correctly, technology can be one of the most vital tools in the growth of a business. With the world moving forward and becoming more and more tech-savvy each day, it is wise to shape your business with the help of these growing mechanizations to see better end results and maximize profits. Stay ahead of business trends by utilizing as much of the internet and modern technology as possible to keep surviving in this cutthroat economy!





REFERENCES:


World Health Organization


Click2Houston.com


Chron


BusinessCloud




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