In honor of Small Business Month, it’s a good time to reflect on the vital role small businesses play in shaping our communities and powering the global economy. Running a small business takes vision, resilience, and adaptability, but staying competitive in 2025 is more challenging than ever. Amid rising costs, evolving customer expectations and rapid advancements in technology, many entrepreneurs are navigating uncertainty while trying to maintain efficiency, morale and growth.
According to Salesforce, 43% of small businesses have been actively exploring tech upgrades to boost productivity because their current technology has become outdated. Despite this appetite for innovation, many business owners feel overwhelmed by the volume of options and the risk of making the wrong choice.
In working with small to medium-sized businesses (SMBs), I’ve seen firsthand how strategic technology decisions can make a powerful impact. Whether through peer networks, local mentorship, or programs like Lenovo’s Evolve Small, which provides support to underserved small business owners, finding the right guidance can be just as valuable as the tools themselves.
When business owners understand their biggest challenges, they’re in a better position to tackle them. Here are three of the most common pain points small businesses face today and how they can begin to solve them.
Outdated or Misaligned Technology
Many small businesses continue to use the same technology they started with, not by choice but by necessity. This continuation comes despite a recognition that investing in the right tools may increase competitiveness. In fact, according to the Chamber of Commerce’s latest tech impact study, 84% of small business owners say digital tools help them compete with larger companies and 87% believe technology has helped them grow during challenging conditions.
Yet, when every dollar counts, it can feel safer to stick with the familiar, even though old systems often come with hidden costs, including reduced productivity, poor customer experience and rising employee frustration.
Upgrading doesn’t mean chasing the latest gadget. It starts with evaluating your unique business needs to find the adequate solution. Are you frequently on the go? Then, hybrid devices that work well in the office, at off-site client meetings or while traveling may be essential. This can include laptop-based systems and a tablet so users can switch between functions to accommodate their settings and needs. Do you lack dedicated IT support? Then, a managed services model that bundles devices, software and support into a cohesive, connected ecosystem may be more cost-effective than selecting tools a la carte. Your smart technology investments should align with how you work, not with what’s trending.
Bottlenecks in Productivity
Small teams often mean one person wearing numerous hats with even more responsibilities, which makes inefficiencies even more painful whenever they occur. From juggling sales and service calls to navigating disjointed systems, it’s easy to lose time on tasks that don’t move the business forward.
The key to better productivity isn’t longer hours, but rather working smarter and streamlining workflows. To focus on bigger projects, we must identify and implement ways to maximize the efficiency of each team member. Start by talking to your team to uncover where the bottlenecks are. What slows them down? What is a duplicate and can be dropped? From there, look at tools that automate and reduce manual work, such as scheduling assistants, shared dashboards or AI-enabled writing tools to summarize meetings. Starting with simple, well-supported tools can help build confidence and deliver fast returns. It all starts with listening to your team and removing friction from their day-to-day.
Making Sense of AI
AI holds enormous promise for small businesses, yet many are still unsure how to begin. Figuring out the best way to incorporate AI starts with identifying tasks that are repetitive or time-intensive, but don’t necessarily require a human touch. Think data analysis, invoice and expense management and scheduling. According to ColorWhistle, 72% of small businesses using AI-driven customer support see faster resolution times and improved overall customer satisfaction
One area seeing early success is AI-driven marketing solutions such as ad targeting. ColorWhistle also found that 47% of marketers in small businesses now rely on AI to improve targeting and drive higher conversion rates. Other common use cases include drafting social media content, writing marketing emails and creating digital ads.
Rather than diving in headfirst and viewing AI as an all-or-nothing business investment, start with one or two of these repeatable tasks. These low-risk, high-impact applications can offer a fast return on investment and build confidence in the value of AI.
Today’s small business owners face many challenges, with time management and operational efficiency among the most critical. When right-sized and strategically implemented, technology can alleviate major pain points and create opportunities for growth. By understanding your business core needs, involving your team and leaning on partners and community resources, SMBs can adopt the right technology and scale smarter.
Tom Butler is the Vice President, Worldwide Commercial Portfolio and Product Management at Lenovo IDG.
