Costs Are Biggest Obstacle For Milwaukee Small-Business Owners

MILWAUKEE, WI — The COVID-19 pandemic's shift in the way business owners use technology to complete transactions has placed new burdens on some Wisconsin small businesses.

High costs are the biggest obstacle for small businesses that want to use technology, a Wisconsin Policy Forum report said. Milwaukee small-business owners who were surveyed said that a lack of training, capital and cultural recognition were also significant barriers.

Some 66 percent of business owners said that fees were the biggest barrier for them to use technology for their business, the nonprofit said. Some 57 percent of owners said costs kept them from adopting new technology.

More than a third, or 34 percent, of business owners said training with technology was also a barrier, the nonprofit said. Some 28 percent said comfort with technology was also a barrier, a common response from older small-business owners.

Many owners said they increased their use of hardware, software and social media during the COVID-19 pandemic, the nonprofit said. Young business owners were more likely to use all three.

Every Black, Latino and Hmong business owner surveyed said participating in existing entrepreneurial initiatives felt intimidating because they were focused on or led by the white Milwaukee community, the nonprofit said. Language was also a barrier for some business owners, particularly for those who spoke Spanish and Hmong.

The report was commissioned by the Greater Milwaukee Committee to look at the use of technology by Milwaukee businesses as they try to respond to challenges of the pandemic and the related recession, the nonprofit said.

Federal funds are available for pandemic relief, and the city can use some of the money to ensure quality internet access for those who need it, the report added.