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There is a myth, growing in popularity, especially in Washington, D.C., that large technology companies somehow prosper at the expense of small businesses. The reality is far different, as seen from a recent survey by the Small Business & Entrepreneurship Council (SBE Council) and other evidence.

Regardless, some in the political class and special-interest, high-priced, Washington-based attorneys thrive on stoking these divisions. That is nothing new as the politics of envy has perennially fueled ambitious political attacks.

The danger now is that protracted litigation against America’s most innovative companies could derail our thriving culture of innovation.

Opportunities for small businesses in all sectors are greater than ever before in part because of the services and competitive innovation Big Tech provides. For small businesses, Big Tech means higher sales, improved operating efficiencies, and even potential investors.

The March 2025 survey by the SBE Council found that:

  • The median percentage of sales for small businesses from social media and tech platforms is 23.5 percent.
  • One in five businesses derive over half of their sales from these channels.
  • 58 percent of businesses use AI tools or solutions.
  • 91 percent of small business AI users say that AI tools and technology platforms have been important to their firm’s growth and competitiveness over the past year.

The study also found the top uses for AI among the small businesses currently using it include writing for websites and other content (43 percent), image creation (37 percent), e-mail marketing automation (36 percent), and chatbots for customer support (30 percent). Of those using AI, 70 percent plan to increase spending on it.

A healthy small business sector is also integral to the success of large tech companies.

Third-party sellers account for over 60 percent of Amazon’s online store sales. This amounts to more than 4.5 billion items annually, with U.S.-based sellers averaging more than $250,000 in annual sales. Amazon ships products to 100 countries worldwide, opening new frontiers that were unfathomable to small businesses until a short while ago.

In 2024, Google provided $850 billion in economic activity for American businesses, nonprofits, publishers, creators, and developers. In fact, many companies benefit from Google without incurring any costs. More than 19 million American businesses used Google’s tools at no cost for phone calls, bookings, reviews, requests for directions or other items.

Meta is also targeting “hundreds of millions” of businesses worldwide as it deploys AI. More than 200 million businesses worldwide are already using Meta services such as WhatsApp, Facebook, and Instagram. Meta expects to provide widespread AI to help with redundant tasks and customer service.

The three companies mentioned above have also budgeted $235 billion for capital expenditures, mostly for AI investments, in 2025 alone.

Meanwhile, the Federal Trade Commission (FTC) is pushing ahead with aggressive lawsuits that could break up Amazon and Meta, while the U.S. Department of Justice is doing the same with Google and its parent company, Alphabet.

The lawsuits are unnecessary and reckless as they put at risk the economic vibrancy and effectiveness by which millions of small businesses thrive or thrive more than they otherwise would. American businesses have made their views clear and will continue to do so as the risks from these actions grow.

Paul Steidler is a Senior Fellow with the Lexington Institute, a public policy think tank based in Arlington, Virginia. 

 



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