80% of Small Business Owners Use Digital Technologies, But Most Remain at the Basic or Introductory Level

Korea Federation of SMEs Announces Results of "Small Business DX·AX Status and Policy Demand Survey"

Eight out of ten small business owners utilize digital and artificial intelligence (AI) technologies, but most remain at a basic or introductory level, according to a recent survey.

The Korea Federation of SMEs announced on June 9 the results of its "Small Business DX·AX Status and Policy Demand Survey," conducted with 500 small businesses. The survey found that 80.0% of small business owners are using digital and AI technologies. Meanwhile, 19.6% have not adopted such technologies, and 0.4% stopped using them after initial adoption. This includes the use of everyday digital technologies such as document editing, kiosks, and delivery apps.

The main areas where digital and AI technologies are utilized (multiple responses allowed) were: ▲business support (54.5%), ▲customer service (31.8%), ▲sales and distribution (22.3%), and ▲marketing and publicity (21.3%). Looking at the main technologies used (multiple answers allowed), for business support, "digital POS systems" were the most common at 68.3%. In customer service, "AI call assistants and chatbots" were most widely used at 66.9%. For sales and distribution, "online store management" accounted for 51.1%, and for marketing and publicity, "SNS channel management" was cited by 52.9%.

However, the digital competency of small business owners was found to be generally low. As many as 83.3% of respondents said they were at the "basic or introductory level" (30.5% basic, 52.8% introductory).

Small business owners reported experiencing positive effects from adopting digital technologies (multiple responses allowed). Specifically, 69.8% cited "time savings and improved efficiency," while 25.5% experienced "increased sales through better publicity." Other benefits included "cost reduction" (11.0%) and "improved customer satisfaction" (8.5%).

Regarding usage methods (multiple answers allowed), 45.0% subscribed to software and programs on their devices, 31.8% rented devices, and 24.8% purchased devices. In terms of cost, for device purchases, "over 2 million won" accounted for the highest proportion at 14.1%. For device rentals, "less than 50,000 won per month" was the most common at 40.9%. Monthly software subscription fees were most frequently in the "10,000 to less than 30,000 won" and "30,000 to less than 50,000 won" ranges, each at 14.4%. However, a significant percentage of business owners responded that they "do not know" the digital costs, with 64.6% for device purchases, 37.8% for device rentals, and 37.2% for software subscriptions, indicating that many small business owners are not fully aware of related expenses.

Only 3.2% of small business owners reported having participated in government-supported digital and AI-related support programs over the past three years. The most common reason for non-participation was "not being aware of the existence of support programs," at 76.2%. The most needed digital and AI policy supports for small business owners were: ▲operational cost support (59.0%), ▲initial cost support (35.8%), ▲customized education (16.6%), ▲and consulting support (14.0%). The most anticipated digital support program for small business owners this year is "support for AI utilization education and for introducing AI-powered product development and services" (46.4%).

Heejoong Kim, Director of Economic Policy at the Korea Federation of SMEs, stated, "While the rate of digital adoption among small business owners is high, the reality is that most remain at a basic level," adding, "It is urgent to strengthen digital competencies so that they can be practically helpful for store management."

This content was produced with the assistance of AI translation services.