Seven out of 10 small business owners who have introduced digital and artificial intelligence (AI) technologies are experiencing the effect of reducing time and efficiency of work.
The Korea Federation of Small and Medium Business conducted a survey on 500 small business owners on the 9th on the current status and policy demand of DX and AX, and found that 69.8% (279 companies) of 400 small business owners who introduced digital and AI technologies experienced the effects of "shortening time and efficiency" (multiple responses).
In addition, 25.5% (multiple responses) of 400 companies used experienced "increased sales due to promotional effects." Some experienced "cost reduction" (11.0%) and "customer satisfaction improvement" (8.5%).
The survey was carried out to check the use of digital technology and AI by small business owners and to find policy alternatives for small business owners to respond effectively to digital transformation demands. Small business owners who participated in the survey were restaurant businesses (200), retail businesses (150), lodging businesses (50), personal service businesses (50), education and leisure businesses (50).
Management support (54.5%), customer response (31.8%), sales and distribution (22.3%), and marketing and promotion (21.3%) were the areas where small business owners mainly use digital and AI technologies.
Of the 500 small business owners, 400 were using digital and AI technologies, but 83.3% of the companies responded with the "basic and introductory stage" level of digital technology use.
In the basic stage, small business owners felt difficult and unfamiliar to introduce new devices or apps other than the basic functions of smartphones or PCs, and the introductory stage was to use universal digital tools such as kiosks, delivery apps, and social network services (SNS).
How to use digital technology (45.0%), followed by in-device software and programs subscription (45.0%), device rental (31.8%), and device purchase (24.8%).
The highest digital cost was 'less than 50,000 won per month' (40.9%) when renting a device. When purchasing the device, it was 'more than 2 million won' (14.1%). The monthly software subscription fee was the highest at 14.4% for "less than 10,000 won to 30,000 won" and "less than 30,000 won to 50,000 won," respectively.
Meanwhile, only 3.2% (16 out of 500) of small business owners have participated in digital technology and AI-related support projects promoted by the government over the past three years. Of the 484 places that did not participate, 76.2% said they were "not aware that there was a support project." Analysts say that it is necessary to raise policy awareness and expand public relations.
The most necessary digital technology and AI support policies for small business owners were operational cost support (59.0%), initial cost support (35.8%), customized education (16.6%), and consulting support (14.0%).
Kim Hee-joong, head of the economic policy division of the Korea Federation of Small and Medium Businesses, said, "The rate of digital use by small business owners is high, but it is still at the basic level," adding, "It is urgent to strengthen digital capabilities so that it can be of practical help to store management."