Digital Tools & Technology Can Move AAPI Businesses Forward: Policy Makers & Market Shapers Should Help

Digital Tools & Technology Can Move AAPI Businesses Forward: Policy Makers & Market Shapers Should Help 

[January 25, 2022: Washington, D.C. ] It’s no secret the advent of the Internet fundamentally changed how businesses interact with their customers. In the past two years especially, the Covid-19 pandemic has only accelerated trends towards digital commerce; businesses were forced to close their doors to the public and offer products and services online. And as the pandemic wanes, the demand for digital services shows no signs of slowing down.

To be sure, digital tools expand far beyond digital payment tools and accounting software. For example, many small businesses rely on social media platforms to advertise, build websites, and to connect with their customers. As the pace of new technologies and tools accelerates, it will become harder to successfully run a business without them. In order for small businesses to remain competitive, absorb tech-related disruptions, and to fully participate in the economy, they need access to and training with digital tools. 

Facebook’s 2021 Global State of Small Business Report found that small and medium sized businesses (SMBs) have steadily increased their use of digital tools for advertising and selling their goods and services. The State of Small Business Report also indicated uneven expectations for the return to in-person work and interaction, leaving many SMBs feeling pressure to maintain digital services.

This supports 2020 research by Facebook that revealed small businesses that used targeted advertising on social media were more likely to reach new customers, and that 4 out of 5 small businesses said they expect to increase their use of digital tools in the future. Research shows that there is overwhelming evidence that digital tools will remain crucial tools for small businesses going forward. Small businesses are America’s top employers and job creators and many are on the road to recovery from a once in a lifetime pandemic; it’s important that digital tools are accessible to all businesses and that they can continue to be used as a tool for growth. 

Given the growing use of digital technology in business and consumer environments, improving digital engagement among small businesses may have a significant impact on future growth for both businesses and the economy as a whole. Small businesses need resources for cutting-edge digital technology solutions to adopt into their operations, as well as having the means to put these solutions into action.

With this in mind, the National Asian/Pacific Islander American Chamber of Commerce and Entrepreneurship (National ACE) calls on leaders in both the public and private sectors to ensure that access to digital tools for small business remains a priority. Larger companies can play an important role in their support of small businesses' growth,  one example being through company mergers and acquisitions. These activities support the growth and innovation of small businesses and start-ups and can help grow the next generation of entrepreneurs. The recent passage of the Infrastructure Investment and Jobs Act will without a doubt help close the digital divide, bringing more small businesses and consumers online - but there is more to be done to ensure that small businesses can fully take advantage of the benefits of the infrastructure bill.

If there was one silver lining of the Covid-19 pandemic, it might be that many small businesses took advantage of digital tools to reach new markets. But, we have more work to do. Only 46% of small businesses had a digital footprint at the end of 2020 (State of Small Business Report).

Additionally, according to research conducted by National ACE and Reimagine Main Street, the majority of Asian American/Pacific Islander (AAPI) small businesses struggle to access capital and technical assistance, a gap that could be filled through enhanced availability of digital tools. The research found that over 60% of AAPIs did not apply for Covid relief because they didn’t know they qualified or the application was too complicated. This is troubling as it demonstrates that barriers for small businesses to participate in the digital economy remain. It will be important for both Congress and large corporate partners to recognize this and do what they can to help small businesses use these vital tools to grow into the future. 

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About National ACE 
National ACE’s mission is to serve as a strong advocate of AAPI business interests and effect positive change on all issues that enhance and advance the goals and aspirations of AAPI business owners, entrepreneurs, and corporate leaders.  National ACE strives to do this through supporting and promoting issues that impact the AAPI business community, improving the economic development and economic impact of the AAPI community, advancing coalitions and enhancing community building, and fostering the next generation of AAPI entrepreneurs and executives. National ACE provides a unified voice for the business interests of AAPIs nationally.

Read the PDF here.