Small- and medium-sized businesses (SMBs) experienced a decade of resurgence and growth in the United States in the 2010s. While many politicians, researchers, and policymakers take for granted that retail entrepreneurship is disappearing due to the rise of digital e-commerce technology, a close examination of the data reveals that the facts do not support the popular narrative. 

A NERA team led by Director Dr. Robert Kulick was retained by the Computer & Communications Industry Association (CCIA) to prepare a report examining data from the US Census Bureau’s Business Dynamic Statistics (BDS) program, which provides the most comprehensive publicly available data on entrepreneurship and the growth of SMBs in the US. 

Prior to the NERA study, there has been limited rigorous empirical examination of the experience of retail SMBs in the 2010s, despite the fact that the popular narrative regarding the demise of retail SMBs has become widely accepted. Using the BDS data, the NERA team found that the facts do not support the narrative, specifically:

• The retail sector remains a hub of SMB activity and continues to be a primary source of startup activity in the US economy.
• Retail SMBs experienced a period of resurgence and growth in the 2010s.
• The resurgence and growth of retail SMBs in the 2010s coincided with increased adoption and use of technology in the retail sector.
• A substantial body of evidence suggests the resurgence and growth of retail SMBs in the 2010s was linked to increased adoption and use of digital and e-commerce technology.