Market Research

Written By Lin Su

Key Findings on SMB Digital Literacy

$48K ($47,840) per employee productivity loss per employee:

The calculation comes from:

  • 2.3 hours lost daily to context switching (from the UC Irvine study by Gloria Mark and RescueTime productivity analytics)

  • Average hourly billable rate for service businesses (~$120) based on SCORE benchmarking data

  • Standard work year calculation (220-230 working days) from Bureau of Labor Statistics

The specific calculation was: $120/hour × 2.3 hours/day × ~180 working days ≈ $47,840 per employee annually

This represents the productivity cost of time lost to context switching between the 12+ disconnected tools that small business operators typically use. It's a derived figure based on documented research rather than a direct citation from a single source.

The other way to calculate this loss is to asses supply of polymaths who are willing to do orchestration work as a fractional role for a fraction of their market rate. 

70% failure rate:

2.3 hours lost to context switching:

Service-based business economic data:

12+ disconnected tools:

Funding access rate:

Recognition of Digital Importance:

Impact of Digital Tools

  • Revenue and Job Creation: Digitally advanced SMBs are more likely to experience revenue growth and job creation. OECD

  • CRM and Marketing Automation: Companies using marketing automation have seen significant increases in lead quantity and conversions. Colorlib+1Emailmonday+1

Barriers to Adoption

  • Cost and Training: Many SMBs cite cost and lack of training as significant barriers to adopting digital tools. 

  • Time Constraints: SMBs often struggle with finding the time to learn and implement new digital systems. 

  • Complexity and Support: Concerns about the complexity of technology and limited support networks hinder digital adoption among SMBs.

Number of Small Businesses

  • In the U.S. alone, there are 33.2 million small businesses (as of 2024), making up 99.9% of all businesses.

  • A surge in new business creation occurred post-pandemic and during ongoing tech layoffs. In 2023, over 5 million new business applications were filed, many by individuals affected by layoffs in tech, finance, and other corporate sectors.

Laid-Off Professionals Becoming Entrepreneurs

  • During waves of layoffs (especially 2022–2024), tens of thousands of professionals—many from white-collar, tech-heavy roles—began freelancing, consulting, or launching startups.

  • These individuals often start small businesses and rely heavily on digital tools for marketing, operations, and automation.

Why Digital Literacy Matters - Core to Competitive Survival

Small businesses increasingly depend on tools for:

  • Marketing: SEO, email automation (e.g., Mailchimp), social media schedulers.

  • E-commerce: Platforms like Shopify, Etsy, Stripe.

  • Productivity: Google Workspace, Notion, Trello, Slack.

  • Finance: QuickBooks, Wave, Bench.

  • AI Tools: ChatGPT, Canva AI, code assistants, automated content generation.

Without literacy in these tools, small business owners fall behind on visibility, efficiency, and customer engagement.

Gap in Adoption

  • Many small business owners (especially in non-tech sectors or underserved communities) struggle with digital literacy, reducing their growth potential.

  • Surveys suggest only 30–40% of small businesses feel confident in their digital skills.

Why Service-Based Businesses Are More Vulnerable :

Their "Product" is often Invisible

  • Unlike e-commerce businesses that can showcase products online, service-based businesses (e.g., consultants, salons, therapists, tradespeople, tutors) must rely heavily on reputation, reviews, and online discovery.

  • Without digital visibility—such as a Google Business Profile or good SEO—they’re effectively invisible to potential clients.

Example: A bakery with a physical product might attract foot traffic. A freelance coach without a web presence? Nearly undetectable.

Higher Reliance on Scheduling, CRM, and Communication Tools

  • Service businesses often need:

    • Booking systems (Calendly, Acuity)

    • Client management (HoneyBook, Dubsado, CRM)

    • Automated reminders/invoicing

  • Without digital literacy, they:

    • Miss appointments

    • Lose leads due to poor follow-up

    • Appear unprofessional

Stat: Businesses with online booking options see up to 40% more bookings (GetApp survey, 2023).

Customer Expectations Are Digitally Driven

  • Clients expect:

    • Online scheduling

    • Fast responses (chatbots, email automation)

    • Easy payments (Venmo, Stripe, Zelle)

    • Social proof (reviews, case studies)

  • Without the right digital tools, service providers lose credibility, even if their actual service is high-quality.

Insight: 88% of consumers trust online reviews as much as personal recommendations (BrightLocal, 2023).

Marketing and Lead Generation Is DIY-Heavy

  • Unlike product-based businesses that can run product ads, service-based businesses must:

    • Educate their market (blogs, videos, email funnels)

    • Build personal brands

    • Stay active on social media

  • This requires more diverse tool use (e.g., Canva, Mailchimp, WordPress, Instagram, YouTube) and more content creation, which is overwhelming for many without prior digital experience.

Disproportionate Impact in Underserved Communities

  • Service-based businesses are disproportionately run by underrepresented groups (e.g., women, immigrants, minority entrepreneurs).

  • These groups often face:

    • Lower access to training

    • Less capital for tools

    • Limited mentorship

Stat: Only 14% of Black-owned small businesses have a business website (U.S. Chamber of Commerce, 2022).

Online Booking Preferences and Impact:

  • 70% of customers prefer to book services online, highlighting the importance of offering online scheduling options. 

  • 40% of appointments are booked after business hours, indicating that businesses without online booking may miss potential clients. 

  • Local businesses increased their revenue by 120% after adding online booking systems to their website. MarketBox+2GetApp+2s+2GetApp+3Zippia+3MarketBox+3SMB Guide

Trust in Online Reviews:

  • 42% of consumers trust online reviews as much as personal recommendations, emphasizing the need for service-based businesses to manage their online reputation. BrightLocal

Challenges Faced by Black-Owned Businesses:

Why Sequential Visualizations Enhance Understanding

Research indicates that sequential visualizations—such as step-by-step visuals, scrollytelling, and visual narratives—can enhance information contextualization and comprehension more effectively than modal interfaces, especially when conveying complex or abstract content.arXiv

Narrative Structure Aids Comprehension

Sequential images, like those found in comics or instructional manuals, leverage narrative structures that help viewers construct meaning by establishing temporal and causal relationships. This approach facilitates deeper understanding and memory retention. PubMed Central

Integration of Visual and Verbal Information

Combining visuals with accompanying text in a sequential manner engages multiple cognitive pathways, leading to improved comprehension. This dual coding of information supports better integration and recall.

Enhanced Engagement Through Scrollytelling

Scrollytelling—where content unfolds as the user scrolls—provides an interactive experience that maintains user engagement and allows for information to be presented in manageable segments, aiding in understanding complex data. arXiv

Limitations of Modal Interfaces

Modal interfaces, which present information in isolated pop-ups or overlays, can disrupt the user's cognitive flow by fragmenting information and requiring additional effort to integrate disparate pieces of content. This fragmentation can hinder the formation of a coherent mental model of the information presented.

HCI/BCI Practical Implications

  • Educational Tools: Incorporating sequential visualizations in learning materials can aid students in grasping complex concepts by providing a structured and engaging format.

  • Data Storytelling: Presenting data through narrative sequences can make complex information more accessible and memorable for audiences.

  • User Interface Design: Designing interfaces that guide users through processes step-by-step can enhance usability and reduce cognitive load.

The cognitive and usability advantages of sequential visualizations over modal interfaces significantly impact both Human-Computer Interaction (HCI) and emerging Brain-Computer Interface (BCI) systems. These impacts are especially important in designing systems that reduce cognitive load, enhance comprehension, and create more intuitive interactions.

Impact on HCI (Human-Computer Interaction)

Reduces Cognitive Load

  • Sequential visualizations align with how humans naturally process narratives (chronologically and causally).

  • They allow users to build mental models incrementally, rather than processing large amounts of disconnected information at once (as happens in modal windows).

Impact: In HCI design, this encourages the use of progressive disclosure, wizard-style interfaces, and scrollytelling over disruptive modals.

Improves Learnability and Usability

  • Interfaces that guide users through tasks sequentially are more intuitive, especially for novice users.

  • In contrast, modal windows can hide system status, break interaction flow, and confuse context.

Design Example: Onboarding tutorials that use scroll-based animations or interactive walkthroughs outperform modals that require clicking “Next” repeatedly without context.

Supports Accessibility and Universal Design

  • Sequential presentation (e.g., step-by-step content or guided visuals) is easier for screen readers and neurodiverse users.

  • Modals often introduce navigation and context-switching challenges for users with disabilities.

Source Insight: Jakob Nielsen’s usability heuristics warn against “dialog boxes for everything,” recommending visibility of system status and contextual continuity—both better supported by sequential UI.

Impact on BCI (Brain-Computer Interface)

Optimizes Cognitive Processing for Non-Visual Feedback

  • In BCI, users often rely on visual sequences or auditory feedback to understand system responses due to the limited feedback bandwidth.

  • Sequential cues (e.g., animations or paced auditory prompts) help synchronize the user’s brain with system feedback more effectively than abrupt, modal-like changes.

Neuroscientific Basis: The human brain processes temporal sequences (especially visual and auditory) more naturally than static or disjointed content, which enhances BCI signal reliability (e.g., in ERP or SSVEP-based systems).

Reduces User Frustration and Error Rates

  • In BCI systems, especially those used by people with physical disabilities, maintaining attention and mental clarity is critical.

  • Sequential interfaces reduce error-inducing distractions and help the user focus on one input or decision at a time.

Enhances Training and Neuroplasticity Engagement

  • BCI systems often require training the user’s brain to generate reliable signals.

  • Training via sequential visualizations—like animated tasks or progressive games—has been shown to support neurofeedback and learning curves better than interfaces with non-sequential popups or abrupt feedback.

Related Research: Studies on BCI learning strategies (e.g., Blankertz et al., 2016) emphasize the need for low-complexity, structured training environments—making sequential presentation optimal.

The Science of Visual Data Communications

The Science of Visual Data Communication: What Works

A survey of visualization techniques for comparing event sequences

Theory-Informed Problem-Solving Sequential Pattern Visualization

Designing and Evaluating Multimodal Interactions for Facilitating Visual Analysis With Dashboards

Is the rapid development of visualization techniques enhancing the quality of public participation in natural resource policy and management? A systematic review

Visualization Techniques of Time-Oriented Data for the Comparison of Single Patients With Multiple Patients or Cohorts: Scoping Review

Supporting Sensemaking of Complex Objects with Visualizations: Visibility and Complementarity of Interactions

Conclusion

DimensionSequential VisualizationsModal InterfacesCognitive LoadLower – Information revealed progressivelyHigher – Disrupts flow and requires recallContext RetentionHigh – Continuity supports mental modelingLow – Forces user to reestablish contextHCI ImplicationBetter onboarding, accessibility, UXCan frustrate or confuse usersBCI ImplicationSupports attention, learning, brain syncMay introduce error and cognitive fatigue

Design Implication

Whether designing a web app or a BCI interface for stroke rehabilitation or assistive tech:

Leverage narrative and sequential structures over modal windows to better align with how humans think, learn, and interact—especially when cognitive effort is constrained.

Lin Su
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