Level the Playing Field: How SMBs Leverage Tech To Compete with Giants

Small and medium-sized businesses (SMBs)—those with fewer than 1,000 employees—are often working hard to keep pace with larger companies that have deeper pockets and greater resources.

Competing with industry giants can feel like rowing a small boat in a race full of speedboats. But through technology, SMBs are claiming their own lanes and making serious waves.

Thinking big and acting nimble

Here’s how SMBs are using technology to boost efficiency, scale faster, and grow strategically—all without breaking the bank.

Integrating AI and automation for efficiency

Artificial intelligence (AI) isn’t just for tech pros anymore. Thanks to advancements like generative AI, people in all kinds of roles—from architects to admin assistants—are harnessing AI to get more done in less time.

Individual workers aren’t the only ones supercharging their productivity through AI. According to Salesforce, 91% of SMBs using AI report revenue growth, and nearly 87% said it helped them scale their operations.

You may think businesses are using AI to save money by cutting jobs, and that may be true in some cases. However, many SMBs are using AI to handle repetitive tasks so their teams can focus on higher-value work—leading to happier employees and better results.

Take Notice Ninja, for example. This small Phoenix-based company helps tax pros manage the mountain of tax notices they receive. With just 15 employees, efficiency is critical for Notice Ninja. So, they built an AI-powered platform that scans tax notices and routes them to the right person automatically. That way, their team can spend less time sorting through paperwork and more time doing what they do best.

“When implemented thoughtfully by domain experts, (AI) can drive major efficiencies,” said company president Amanda Reineke. “AI won’t replace human work, but will augment and lift it.”

Operating on the cloud for smooth scaling

Cloud platforms are a game changer for SMBs. The online platforms offer powerful tools for data storage, team collaboration, and security—all without the need for hefty investments in servers or IT staff.

Take a Maryland-based cybersecurity company, for instance. As they grew, their on-premise systems couldn’t support remote collaboration or security needs. By switching to Microsoft 365, they improved collaboration, tightened security, and cut IT costs. An added bonus: The IT team no longer spent time managing servers, which freed them to focus on more strategic tasks.

For SMBs, moving to the cloud is often simpler than it is for big companies, as SMBs usually have fewer legacy systems to migrate, use simpler workflows, and can make decisions faster. No wonder 61% of SMB workloads are already in the public cloud.

Digitizing marketing for targeted reach at scale

Marketing on an SMB budget can be a challenge, but digital tools make it easier to connect with customers, gather meaningful data, and create personalized experiences. 

Revival Rugs, a company with around 55 employees, is an example of how SMBs can use technology to compete with larger players. The online company uses AI and augmented reality (AR) to overcome common e-commerce hurdles, like buyer indecision. Here’s how it works:

• AI-powered quiz. Customers answer a few simple questions about their style, needs, and budget, guided by an interface that feels like chatting with a friendly sales rep.
• Personalized recommendations. Based on their answers, the AI suggests products tailored to their preferences.
• AR visualization. Shoppers can use AR to see exactly how a rug will look in their space before making a purchase.

This approach allows Revival Rugs to deliver a personalized shopping experience, build customer confidence, and scale their operations—all without losing the human touch.

Using business intelligence tools to improve resilience

Unlike big companies, SMBs usually don’t have teams of data analysts in house. But business intelligence (BI) tools make powerful data insights accessible to anyone.Even better: BI tools are designed for non-technical users. So anyone can use their data to increase their competitiveness across the entire business by:

• Tracking competitors’ strategies and spotting opportunities
• Identifying cost-saving measures across their value chain
• Monitoring employee performance and developing tailored career development plans
• Spotting problems before they become an issue

The payoff of using BI tools is significant. Research shows SMBs that use big data analytics are found to be more organizationally resilient than those who don’t. Put another way:

Data-powered SMBs can better adapt to changes, recover from disruptions, and maintain business continuity during crises.

Subscribing instead of buying tools for cash flow

Software as a service (SaaS) are cloud-based products that you access online on a subscription or pay-per-use basis. These products make enterprise-grade technology accessible to SMBs. Think tools like Google Workspace, Zendesk, BambooHR, and Okta. 

So why subscribe instead of buy?

Buying software outright is expensive and a hassle to scale. SMBs must install the software on their own servers, maintain the infrastructure, manage security, handle updates, and stay compliant with regulations. That’s a lot to juggle.

Subscribing, on the other hand, keeps things simple:

• Lower upfront costs make it easier on cash flow.
• Access from anywhere means employees can work seamlessly, no matter where they are.
• Minimal maintenance because the provider handles updates, security, and server upkeep.
• Easy scalability lets SMBs add users or features without changing their infrastructure.

The benefits are so strong that 90% of SMBs use SaaS products.

Solving for talent shortages with freelance professionals

Did you know businesses that adopt technology early are nearly twice as likely to experience higher revenue growth? That’s according to a Microsoft study. The benefits go far beyond just revenue—they’re a major boost for building stronger, more efficient businesses.

But resources limitations make it difficult for SMBs to overcome common hurdles like:

• How do I know which solutions are right for me?
• Integrating new apps with our existing ones feels overwhelming.
• How do I maintain data privacy and security?
• Getting employees up to speed takes too long.
• Our IT team doesn’t have the bandwidth or expertise to handle this.

These challenges all come down to one thing: having the right skilled people to get the job done well.

This is where freelance professionals come in. See how real-life SMBs are staying competitive with help from freelance specialists.

‍The Workplace Depot

‍The U.K.-based company transitioned from a catalog-based business into a fast-growing e-commerce success by relying on freelance specialists. David Barnes, the company’s head of marketing, explained:

“The cost savings from contracting talent outside of the U.K. are significant. Hiring a 3D animator through Upwork, for instance, saves us 85% compared to an agency. The savings also come from the flexibility in how we work with the freelancers. Because we work on a project basis, we can manage the workflow and, equally, the cash flow.”

‍PGA of America

‍The engineering team at PGA of America uses freelance software developers to test proof of concept before committing internal resources. This approach is not only cost-effective, but also a less risky way to innovate.By pulling in freelancers, the team completes projects three times faster; working with freelancers saves them 50% on average compared to traditional hiring. George Whitaker, Director of Software Engineering at PGA of America, shared:

“Independent talent changed how we handle development. They gave us the confidence to test new ideas and opened our minds to what’s possible.”

‍Ensemble Consultancy

‍Michael Contreras, who regularly worked with freelancers during his time at NASA, brought that approach to his D.C.-based consultancy. Freelancers have become a cornerstone of his business, helping him compete with larger firms.

“Because we have our Upwork talent bench, we can say in our proposals that talent on Upwork is a key part of our last mile build strategy,” Contreras said. “I can be confident that we’ll have all the needs for a project filled in under two weeks. And the real silver bullet is that the specialists we connect with on Upwork have so much more experience than the usual talent in the beltway that these agencies would pull from.”

One standout project involved working with a freelance tech development agency to build an educational app for NASA. Large firms would have charged $4 to $6 million, but the freelance team completed it for just $175,000—including maintenance for the first year after launch.

Work with the best freelancers, without the searching and vetting hassle

Technology is no longer a luxury reserved for big corporations. SMBs are leveraging it to punch above their weight, adapt quickly, and thrive in competitive markets.

SMBs that incorporate freelancers into their workforce unlock the specialized skills they need to fully leverage new technologies. And finding the perfect freelancer for your project is simpler than ever with Upwork Business Plus.

Here’s how Business Plus helps you work with quality freelancers faster:

• Top-tier professionals. Connect with Expert-Vetted Talent—the top 1% of professionals on Upwork.
• Customized matching. Talent Specialists personally source and vet freelancers to ensure they can do what you need them to do and complete work within budget.
• Fast results. Receive a curated shortlist, handpicked by real people, within two business days.

And the best part? There’s no subscription fee or upfront cost.

Close the skills gap and enable your teams to compete with the giants. Visit Upwork Business Plus today and see how easy it is to work with world-class professionals.

‍

‍Upwork is not affiliated with and does not sponsor or endorse any of the tools or services discussed in this article. These tools and services are provided only as potential options, and each reader and company should take the time needed to adequately analyze and determine the tools or services that would best fit their specific needs and situation.