Small businesses have played a critical role in shaping America’s economy. However, big data affects small businesses meaning these companies could be in jeopardy.
Startups and small enterprises have created millions of jobs. As we move into the future, these companies may be in jeopardy. Zoe Baird, CEO and President of the Markle Foundation, explains how big data affects small businesses and how they’re in danger of falling on the wrong side of a growing digital divide.
Large corporations are investing more and more into data and analytics that are outside the capabilities of smaller firms. 84% of executives in large companies suggested that big data analytics will shift the industry’s competitive landscape within 12 months. Almost 90% of those surveyed reported that big data analytics is one of the top priorities of their company. If the public and private sectors can’t work together to fix this imbalance, small companies may simply be pushed out of the market.
Data has enormous power. Advanced analytics allow companies to forecast demand, identify markets, optimize supply chains, and spur innovation. Breakthrough innovators frequently generate new ideas through information collected from social media and big data. Large enterprises use data and analytics to give themselves a competitive advantage.
Small business face two challenges: cost and access to skilled talent. We need collaboration between government, business, and organizations to make data tools available to smaller enterprises. This would result in more jobs and secure economic opportunity for all Americans. The digital divide caused by access to big data is a pressing issue that must be addressed sooner rather than later.