Small Businesses Using Digital Tools to Adapt

Small business owners rely on a lean yet essential set of digital tools to help as they navigate challenges and pursue new business opportunities, according to a new survey of small business owners conducted by the Capital One Insights Center. The survey is the latest installment of ongoing research to better understand the strategies and resources entrepreneurs use to maintain and grow their small businesses.

In 2024, research by the Insights Center found that digital tools play an important role in helping owners build resilience in their small businesses. Resilience is being able to absorb and adapt to adversity or uncertainty. The ability to successfully pivot when disruptions emerge is critical to overcoming challenges, staying competitive and thriving in the midst of change. Last year’s report found small business owners agree that digital tools helped them run their businesses more efficiently (90%) and find new customers (90%). 

To understand specifically what tools owners leveraged in the past year to remain resilient, in April 2025, the Insights Center surveyed 1,000 small business owners in the U.S. to examine the variety of digital tools they used, and how important they were to business owners.

Respondents represented a wide array of industries and sizes: More than half (54%) of respondents generated less than $1 million in revenue, and many (43%) have 10 or fewer employees. Construction (15%) and retail/online (13%) were the top industries represented in the survey. However, the vast majority had an exciting trait in common: The study found that nearly 90% of those surveyed met our definition of resilient small business owners, meaning, they pivoted their small businesses in some way in the last four years. 

It’s important to understand the backdrop against which businesses are operating and leveraging their digital toolbelt, and also often pivoting in some way. Running a small business is not easy, and business owners face perennial challenges; respondents told us that some of the most difficult aspects of managing their businesses are planning for the future (45%), time management (42%) and managing cash flow (39%). 

When asked about the past year of running their business, nearly half (48%) of all small business owners said the past year (2024 - 2025) had been the most difficult to run their small businesses, and 56% said they have faced more uncertainty this year than last as they navigate the external environment. 

Despite that, when asked to share their views on the economic environment, many small business owners expressed optimism about the future: An overwhelming majority of resilient owners (89%) shared that they are excited about opportunities to grow their businesses this year. 

While resilient small business owners have many tools in the digital toolbelt to choose from, nearly half (45%) of respondents indicated that they use three or fewer digital tools. A small yet important set of tools help owners manage their small businesses, with banking mobile apps (51%), business credit cards (47%) and accounting software (45%) among the most commonly used in the past year.

Resilient business owners were asked not only to identify the tools they used, but which of those tools were most important to managing their business. Customer communication tools (49%), Customer Relationship Management (CRM) (47%), bookkeeping or accounting software (45%), business credit cards (45%) and tools for payroll processing (47%) were the most likely to be seen as absolutely essential by resilient business owners. 

Business owners also made clear through the survey that they value these tools because they help build resilience and address some top business challenges, including time management, managing cash flow and planning for the future. More than four in ten (41%) resilient business owners said they value CRM because it provides customer insights; we know from last year’s study that listening to customers is key to being a resilient business. Bookkeeping or accounting software and payroll processing tools are most likely to be valued for their automation of unwanted tasks – helping business owners free up and better manage their time. The top selected benefit of business credit cards by business owners was that they afforded them flexibility to respond to challenges (26%), followed closely by time to focus on business growth and strategy (22%), helping to address the challenge of planning for the future.

With small business owners using a small but meaningful set of tools, we took a closer look, specifically at business credit cards, to better understand how they foster resiliency. 

Resilience and the ability to pivot requires extreme flexibility from business owners, who in turn require that of their tools, and business credit cards emerged as one of the most flexible tools business owners use. Four out of five (81%) resilient owners report having a business credit card, and the overwhelming majority of them say their business credit card is an important digital tool that provides flexibility to manage their finances (92%) and is essential to managing cash flow (90%, one of business owners’ top reported challenges).  

Resilient business owners demonstrate their business credit card’s flexibility in the variety of ways they use their cards: Half (50%) of resilient owners use business credit cards to pay vendors, while others use a business credit card to set up recurring transactions (42%), manage employee spending (37%) and provide employee recognition (30%). 

This flexibility extends to the use of their business credit card rewards, as well. More than three quarters (77%) of all small business owners surveyed use business credit card rewards to directly grow their operations or manage their businesses, and resilient businesses are especially likely to take advantage of the flexibility of rewards; more than half reported redeeming rewards in three or more ways. 

Resilient business owners say they use rewards to buy needed equipment (48%) and increase inventory (44%) – increasing short-term resiliency for long-term success. Additionally, one out of three (34%) resilient businesses use business credit card rewards to reward employees, which can help improve employee morale, retention and productivity. 

Pacific Transformer is an Anaheim, California-based business that manufactures transformers for many different customers, including the U.S. military, hospitals, Disneyland and NASA. “Just because we're in an industry that hasn't changed in 120 years, we can't operate as a business that hasn't changed in 120 years. We must make sure the tools we're using are always at the forefront, and have exemplary customer service, quick prototypes and competitive pricing,” said CEO Justin Richardson. “We essentially doubled our revenue from 2020 to 2023. We are working like crazy, and it’s imperative to the success of my business and employees that we have a banking partner that ensures we’re taking advantage of new opportunities and tools.”

In the first report on small business resiliency, we learned about the strategies small business owners use to adapt to challenges and seize new opportunities. Listening to customers and leveraging digital tools play a critical role in helping small businesses successfully pivot in the face of adversity and uncertainty.

This newest installment finds that resilient small business owners are discerning about the tools they need, selecting tools that address their top challenges and position them for resilience. Staying aligned with the customer experience, maintaining flexibility and increasing efficiency are some of the most impactful ways digital tools help small businesses respond to setbacks, embrace change and achieve success.

Note: all data in this report is from self-reported, anonymous research of U.S. consumers broadly, not specifically from or about Capital One customers or employees.

The Capital One Small Business Resilience survey was conducted April 4-14, 2025 among a sample of 1,000 business owners as those with more than one employee and total annual revenues of up to $20 million.. 

The surveys were conducted online and the data were unweighted.

Results from the full survey have a margin of error of +/- 3 percentage points.

The Center combines Capital One research and partnerships to produce insights that advance socioeconomic mobility. As a nascent platform for data and dialogue, the Center strives to help changemakers create an inclusive society, build thriving communities and develop financial tools that enrich lives. The Center draws on Capital One’s deep market expertise and legacy of revolutionizing the credit system through the application of data, information and technology.

This material has been prepared by the Capital One Insights Center, a non-partisan center for objective research and insights, and is provided solely for general information purposes. Unless otherwise specifically stated, any views, analysis or opinions expressed herein are solely those of the Capital One Insights Center’s staff, researchers and listed partners (if applicable) and may differ from the views and opinions expressed by Capital One Financial Corporation, other departments or divisions of Capital One Financial Corporation, or its affiliates and/or subsidiaries (Capital One). Information has been obtained from sources believed to be reliable. 

The data relied on for this report are based on self-reported survey data from anonymous respondents across the U.S. Survey respondents included may or may not have relationships with any number of financial institutions and/or products. 

Analysis and conclusions constitute the Capital One Insights Center’s judgment as of the date of this report and are subject to change without notice. Furthermore, the analysis and views will not be updated or otherwise revised to reflect information that subsequently becomes available or circumstances existing, or changes occurring, after the date of publication. 

Any opinions expressed herein should not be construed as an individual recommendation for any particular customer or client and is not intended as advice or recommendations of particular securities, financial instruments, market conditions or strategies. Capital One Financial Corporation and its affiliates and/or subsidiaries may issue reports or have opinions that are inconsistent with, and reach different conclusions from, this report.