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Small businesses are navigating an evolving and often challenging economic landscape by leveraging technology and smart marketing approaches. According to Constant Contact´s Small Business Now report, entrepreneurs are responding to inflation, shifting consumer preferences, and rising costs with renewed optimism and a focus on long-term growth. Technology adoption, streamlined marketing, and prioritizing customer relationships are at the core of their resilience, allowing many to overcome early-stage hurdles and position themselves for the future.
The report highlights a significant shift in marketing channels: 63% of new entrepreneurs primarily use social media, but an increasing number are branching into email and SMS to improve customer engagement and conversion rates. Specifically, 33% consider email marketing a powerful yet underutilized tool, and although only 15% currently utilize SMS marketing, its potential for direct interaction and loyalty is widely recognized. Diversification into owned channels is particularly vital given risks such as potential platform bans, making it crucial for businesses to build audiences beyond rented social spaces.
Technology, especially Artificial Intelligence, is now seen as indispensable rather than optional. A notable 91% of new small business owners acknowledge tech´s role in their success, with 72% planning to integrate Artificial Intelligence into marketing initiatives in the coming year. Key uses include content creation (37%), customer data analysis (32%), and delivering personalized marketing experiences (31%). Data from the report shows a direct link between confidence in Artificial Intelligence and overall business optimism—entrepreneurs who are more comfortable with tech are more likely to invest in it for analytics and targeted growth. With more than a third of small business owners also planning to learn new marketing strategies, innovation remains at the forefront.
Despite ongoing challenges such as economic uncertainty and high customer acquisition costs, optimism prevails. While 52% of new owners acknowledge the difficulties of starting up, an impressive 95% would do it again. Looking to 2025 and beyond, small businesses are doubling down on adaptability, tech adoption, and a customer-centric mindset. The key takeaway is clear: continuous innovation, flexibility in marketing channel strategy, and embracing emerging technologies like Artificial Intelligence will help small businesses not only survive but thrive.
