Small and medium-sized enterprises (SMEs) play a critical role in the global economy. More than 98% of all businesses in the United States, Canada and the UK are SMEs. These businesses employ 36% of the US business sector workforce, 47% of Canada’s, and 44% of the UK’s. They are responsible for around 40–70% of business sector gross domestic product (GDP) worldwide and there’s huge potential for SMEs to get a boost in the race to go digital thanks to new, userfriendly AI-powered tools.
Faster growth
Recent data reveal a promising trend: financially and digitally connected SMEs, that are also leveraging AI tools, grow faster. The Intuit QuickBooks Small Business Index Annual Report found a direct correlation between increased use of AI-powered digital tools and employment and revenue growth. SMEs leveraging more than eight digital tools were twice as likely to report revenue growth and three times as likely to report workforce growth of those use fewer than three digital tools.
Smarter policies
SMEs can benefit immensely from leveraging AI technology — but this technology is rapidly evolving, and many don’t know where to turn for resources to help them understand the risks and benefits. In addition, policy makers shouldn’t lose sight of the unique perspectives SMEs can bring to regulatory discussions to ensure they can use such tools safely. To ensure SMEs can better harness the power of AI to help grow their businesses, policy should:
- Provide government programmes and the necessary training and talent to help small businesses use emerging technologies, including AI-powered tools. For example, the Small Business Artificial Intelligence Training and Toolkit Act (S.4487) in the U.S. would assist in the development of AI resources and toolkits for small firms; authorise the creation of a grant programme to support AI training partners; require meaningful collaboration between the Small Business Administration and the Department of Commerce to educate small businesses.
- Modernise existing small business programmes to ensure they meet the emerging technology needs of small businesses. For example, Canada’s Digital Adoption Program (CDAP) helps SMEs adopt new digital technologies. The government programme provides SMEs grants of up to CAD 15,000 to develop a digital adoption plan, and/or CAD 7,300 to hire skilled young talent to assist the digital transformation of the business. Once the plan is developed, the programme also gives access to 0% loans, up to CAD 100,000 from the Business Development Bank of Canada (BDC) to implement the plan and cover costs associated with technology adoption, access to expert advice, and support for digital transformation.
- Provide SMEs with a seat at the table. AI has huge potential for small businesses, but they must be included in the policymaking process and have a voice in regulation, legislation, and AI advisory committees. One good example of this is the European Union’s SME Envoy Network which brings together SME representatives from each EU member state provides a platform for small businesses to influence EU policies and regulations and ensures that their needs are taken into account.
Better data
More data will be required to help policy makers better understand AI’s impacts and how small businesses are responding. One way Intuit aims to support policy makers is by leveraging data. We worked with University of Chicago economist Professor Ufuk Akcigit to develop the Intuit Quickbooks Small Business Index, which provides a rigorous pulse-check on the health of small business over the past month. The Index publishes the latest employment and hiring information before official statistics become available and generates new insights into the use of business tools.
Leveling the playing field
Government leaders have the unique opportunity to help level the playing field for SMEs by putting the power of AI in their hands — giving them improved access to financial tools, services and expertise to power their prosperity. The technology landscape is changing minute to minute, so policy makers need to act now to make sure their SMEs aren’t left behind in the race to go digital.
Kerry leads Intuit’s legal, global corporate affairs, privacy, and compliance teams as they work to support Intuit’s mission of powering prosperity around the world.
Kerry joined Intuit in 2006, most recently serving as Deputy General Counsel. Prior to joining Intuit, Ms. McLean spent over six years at Wind River Systems, Inc., most recently as the Director of Legal. She also worked as an associate at Howard, Rice, Nemerovski, Canady, Falk & Rabkin PC (now Arnold & Porter Kaye Scholer LLP). Ms. McLean currently serves as a member of the Board of the California Minority Counsel Program supporting its mission of promoting diversity in the legal profession by providing attorneys of color with access and opportunity for business and professional development.
Ms. McLean holds a Bachelor of Arts degree in International Relations from the University of California, Davis and a Juris Doctor from the University of California College of the Law, San Francisco.