Micro business owners are using AI to compete with big brands to level the playing field: report

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More micro businesses, companies with 10 or fewer employees, are leveraging generative AI to grow their businesses and compete with big brands.

Over 3,000 micro business owners were surveyed by Venture Forward, GoDaddy's international research initiative, in February 2024 about leveraging generative artificial intelligence to compete with large brands and level the playing field across a multitude of industries. The findings concluded that 44% of micro businesses, companies with 10 or fewer employees, somewhat or wholly agree that AI capabilities will assist in business growth over the next year.

Their greatest challenge when they start is marketing," Alexandra Rosen, senior director at GoDaddy Venture Forward, told FOX Business during a video interview. "They’re using it for the things they previously hired people for." Though micro business owners are no longer in need of marketers to provide digital services, Rosen said despite the assumption that there are fewer jobs left because of GenAI, there is no evidence to show jobs are actually displaced.

Of those surveyed, 40% of the owners reported that their micro business was not their main source of income, and 66% reported hoping that it would become the primary source, according to Venture Forward data. "It seems like it’s a lot more for supplemental income or for the flexibility that it enables," Rosen said. As for demographics of the surveyed group, 1 in 3 Black and Hispanic-owned micro businesses are using AI, according to Venture Forward data.

The data also concludes that Black-owned businesses are twice as likely as White-owned brands to use AI specifically for customer service, while Asian and Hispanic micro business owners use it twice as much to drive sales. "People who maybe were more affected during economic downturn, were displaced from the workforce, or just in general, people reflected on being their own boss, or always had a dream of opening their own business," Rosen said.

 

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