Connected Commerce Council (3C)

New 3C research shows AI is leveling the playing field for small businesses. Our latest survey of small business leaders finds that more than half say AI is already critical to their success, and 62% believe it helps them compete more effectively with larger companies. At the same time, 80% say digital tools are important to running their businesses, with more than a third calling them absolutely critical. For small businesses navigating economic uncertainty, access to affordable, effective digital tools isn’t optional. It’s foundational. Read the full report out now: connectedcouncil.org/the-digital-ad…

Texas tax policy is still driving up costs for small businesses that sell online. Right now, marketplace platform fees are treated as taxable “data processing services,” which can make it more expensive for small sellers to use tools like Amazon, Etsy, and eBay. Lawmakers considered a fix last year but didn’t get it across the finish line, and the tax is still in effect. With new leadership at the Comptroller’s office, this is the right time to revisit the issue. Small businesses shouldn’t face higher taxes just for using digital tools to reach customers. connectedcouncil.org/policies/texas/

California legislators just moved forward with a bill that could restrict common pricing and promotion tools small businesses use every day. We sent a letter on AB 2564 last week, warning that the bill could sweep in routine practices like coupons, loyalty discounts, and targeted offers that small businesses leverage to stay competitive. Good policy should go after bad actors without making it harder for small businesses to serve their customers. connectedcouncil.org/wp-content/upl…

Small businesses cannot simply be carved out of broad data restrictions. Much of the value small businesses get from data comes from the tools built and operated by large service providers. If those providers face new limits on how data can be collected or processed, the impact reaches the small businesses using those tools too. That can mean higher advertising costs, fewer insights, and a harder time competing. Data privacy protections matter, but policy should reflect how small businesses actually operate and avoid unintended consequences that make it harder for them to grow.

Many data privacy proposals include strict data minimization rules that limit how customer data can be used beyond a narrow purpose. These proposals often say small businesses are protected through exemptions and carve-outs. In practice, small businesses do not manage most data themselves. They rely on digital platforms, online marketplaces, and online service providers to process data so their tools can work. When those providers face new limits, the effects flow through the entire system. As a result, policies designed to target large companies can still create real challenges for small businesses. Policymakers should carefully consider these real-world impacts when developing balanced data privacy protections.

Small businesses are constantly looking for smarter ways to save time, reach customers, and grow. Join us for a workshop on April 7 with Komal Singh, founder of 4X Digital, to walk through how AI-powered marketing tools can help you create content more efficiently, run more effective campaigns, and get better results from your advertising. This session will focus on practical, real-world ways small businesses are using AI to strengthen their marketing and stay competitive in today’s digital economy. Save your spot: connectedcouncil.org/events/the-fut…

Small businesses run on integrated digital tools and services. An online seller might use an e-commerce platform, an email service, a digital ads tool, and an analytics dashboard at the same time. These services work together so the business owner can see what’s working, reach the right customers, and make smarter decisions. This is how a small team can do work that used to require a full marketing department. Restrictions on how data can be collected, shared, or processed do not stay confined to large companies. They directly affect the tools small businesses use to operate and grow.

3C was in Indianapolis today for a small business roundtable with local entrepreneurs and policymakers, talking about the importance of digital tools and online marketplaces that help small businesses compete and grow. Small business voices matter in these conversations, and we appreciate the Indiana entrepreneurs who took the time to share firsthand how policy decisions affect their businesses and communities. Thank you to Sen. Brian Buchanan, Rep. Wendy Dant Chesser, and Tom Fritts from Sen. Young’s office for joining the discussion and taking the time to hear directly from Hoosier small business leaders.

From a North Dakota family farm to grocery shelves nationwide, 3 Farm Daughters is proving that small businesses can turn bold ideas into big success. When Mollie Ficocello and her sisters started growing a new wheat variety packed with protein and fiber, they saw an opportunity: create a pasta that delivers the taste people love, with ingredients they can feel good about. The result? A fast-growing brand now selling through their website, Amazon, and major retailers like Whole Foods and Target. Digital tools have helped fuel that growth, helping the sisters reach shoppers in real time through Instacart ads and build buzz on Meta, Google, and TikTok around their farm-to-table story. But success also comes with challenges. As their business expanded nationwide, Mollie says navigating a patchwork of state privacy laws quickly became a heavy lift for a small team trying to focus on growing their business. Grab a fork and dig into their story 🍽️ connectedcouncil.org/north-dakota-s…

Small businesses run on digital tools. They use online ads, optimize campaigns with analytics, sell on online marketplaces, and leverage email marketing to understand customers, reach new audiences, and compete with larger businesses. These tools work because customer data can be securely processed around the trusted services small businesses use every day. When policymakers consider new limits on data use, it’s important to understand how much of modern small business activity depends on those connections. 80% of small businesses say digital tools are important to running their business. Changes to data rules will not just affect tech companies; they will affect the small businesses using these tools every day.

AI is transforming advertising, and small businesses that learn how to leverage it now will have a major advantage. Join us Tuesday, April 7 for an expert-led webinar on how small businesses can use AI-powered advertising to connect with customers and grow. Komal Singh, founder of 4XDigital AI, will share practical strategies to help you create ad content faster, target campaigns more effectively, and get better returns on your marketing spend. Register here: connectedcouncil.org/events/the-fut…

State legislatures across the country are considering proposals to restrict data-informed and algorithmic pricing tools. For many small businesses, these tools are simply how they run promotions, manage inventory, and compete with larger retailers. In Pennsylvania, HB 1942 could limit common practices like loyalty discounts and abandoned-cart offers. In a PennLive op-ed, Pittsburgh’s Melissa Horvath and Laura Anderson of Sweet Water Decor explain why proposals like this risk hurting the very businesses lawmakers want to support. Before advancing broad legislation, policymakers should listen to the small businesses that use these tools every day. 👉 Read their op-ed to learn more: pennlive.com/opinion/2025/1…

Adebukola Ajao of Destiny African Market writes in the Boston Globe that the proposed Massachusetts Data Privacy Act could make it harder for small businesses like her family’s to connect with their communities and grow. “Like many small, immigrant-owned businesses, our advertising budget is tiny. That makes data-powered digital advertising essential,” she says. “If our ability to use data to power our ads is restricted… we’ll have a much harder time reaching the right audience.” Lawmakers should ensure privacy legislation protects consumers without undermining local entrepreneurs. Full op-ed ⤵️ bostonglobe.com/2025/12/02/opi…

Small businesses are navigating real economic uncertainty, and they’re turning to digital tools to stay resilient. In our latest survey of more than 4,000 small business leaders, a clear pattern emerged: most say economic conditions are hurting their business, and most say digital tools will be essential to managing through it. Digital tools are not an add-on. They’re how small businesses manage risk, control costs, and compete with larger companies that have deeper resources. As policymakers debate tech policy proposals, one thing should be clear: digital tools are part of the Digital Safety Net that helps small businesses compete and grow. connectedcouncil.org/the-digital-ad…

State lawmakers across the country are advancing bills that would restrict how small businesses use data-driven pricing and marketing tools. These proposals are often framed as targeting “surveillance pricing.” But too often, the debate blurs the line between harmful conduct and everyday business practices. Small businesses have always adjusted prices based on inventory, demand, and promotions. Technology simply makes those decisions faster and more efficient. Broad or unclear legislation risks taking useful tools off the table, raising costs, and making it harder for small businesses to compete, especially in an already challenging economy. Policymaking should be precise and targeted, not broad and confusing. More on what’s fact vs. myth from @NRFnews nrf.com/blog/debunking…

AI skills are becoming core business skills. According to 3C research, 79% of small business leaders say it’s critical to their growth. Google’s new AI Professional Certificate gives entrepreneurs practical, hands-on training they can use right away for marketing, communication, data analysis, and workflow automation. Access to high-quality AI training helps small businesses compete, adapt, and grow in a rapidly changing economy. Learn more: coursera.org/google-certifi…

Last week, small business owner Quinten Saathoff drove over 2 hours to Lincoln, Nebraska, to speak at a hearing, telling lawmakers why he opposes a bill (#LB1025) that would tax social media platforms. The co-founder of Caspian Creates warned lawmakers that the proposal would effectively tax the data-powered ads small businesses rely on to reach customers — especially in rural communities. Higher ad costs, in turn, would force small businesses to scale back growth and hiring or raise prices. “Affordable, effective data-powered advertising is vital to thousands of small Nebraska businesses,” he said. “A tax that makes those ads more expensive will hurt those businesses, the communities they serve, and our state’s economy.” When policy drives up costs, small businesses feel it first. Nebraska legislators should think carefully before making it harder for them to grow and compete.

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3C is proud to endorse the bipartisan AI training bill introduced by Sens. Cantwell (D-WA) and Moran (R-KS). @SenatorCantwell @JerryMoran The legislation would expand practical AI toolkits and training for small businesses through the Commerce Department and SBA, focused on real use cases like accounting, marketing, supply chains, and government contracting. Here’s why that matters: AI is quickly becoming a core business capability. When small businesses have access not just to tools, but to hands-on guidance, they can compete more effectively, operate more efficiently, and grow with confidence. This is the kind of targeted, pro-small-business policy that strengthens the broader innovation ecosystem. More details here: commerce.senate.gov/2026/2/cantwel…

AI is quickly becoming a core growth engine for small businesses. Our latest research shows that a strong majority are investing in AI and already seeing real results, with many saying these tools are now critical to their success. There’s real optimism around AI’s potential to drive growth. But there’s also a clear warning: if costs or regulatory burdens increase, many small businesses say they’d have to scale back their use of these tools AI is helping small businesses save time, cut costs, and reach customers more effectively. Policymakers should focus on preserving that access, not making it harder or more expensive. connectedcouncil.org/new-study-reve…

This week in Sacramento, small business leaders brought their stories and real-world experience to the Capitol. In meetings with California Assembly and Senate offices, they shared how affordable digital ads drive customer growth, how AI helps small teams move faster and compete smarter, and how integrated tools keep their businesses running efficiently. When lawmakers hear directly from small business leaders, it makes a real difference. Access to digital ads, integrated services, and AI is essential for small business success. Thank you to Chudi Iregbulem (Beatmatch), Jeff Bond (Inspect.net), and Aly Henderson (Sundrop Vintage) for joining us in Sacramento and ensuring small business voices were heard!