Deloitte’s research found that rural-based businesses are not as likely to be using advanced digital tools. While they face many similar challenges to non-rural small businesses, US small businesses in rural areas were twice as likely to report having an inadequate Internet connection. Jim Hobart, co-founder of Alpaca Direct in Hayden, ID, has had to overcome this Internet access challenge to build a thriving yarn and apparel business that serves over 100,000 customers in 30 countries. In a Senate testimony, he discussed the challenges that rural-based small businesses face: “For a small business in northern Idaho, our sales demographics may surprise you. 92% of our annual sales are online. In the USA, our four top selling states are New York, California, Texas, and Florida. We feel that improved Internet access…needs attention. Our competitors in urban areas are operating on the equivalent of a 12-lane freeway while our access to that freeway is a like a worn-out toll road." 

Deloitte found that only 12% of small businesses with less than 10 employees were digitally advanced, compared to 39% of small businesses with 100-250 employees. While the smallest businesses are less likely to be using advanced digital tools, those that are online are holding their own against much larger competitors. Villa Lagoon Tile based in Gulf Shores, AL has seen the power of digital tools to help them grow. With ten employees, they work on a very niche product - durable cement tiles - and heavily rely on online tools to find their customers. According to John Adams, Director of Technology, “AdWords is really perfect for matching clients and vendors in a niche market. We could never compete with big-box stores on standard tiles. But we can compete for cement tiles thanks to Google search and advertising.”