Why Digital Policy Is the Next Small Business Pocketbook Issue

As the 2026 election cycle gains momentum, economic anxiety is dominating conversations at home and on the campaign trail. From gas and groceries to rent and online access, Americans are closely watching every cost. One expense that is becoming increasingly personal is the rising cost of the digital tools and services that power daily life and small business growth.

For the nation’s 36.2 million small businesses, these digital tools are not abstract technology. They include search, social media, video and audio streaming, connected television, websites, email, and data-driven digital advertising and marketing—a universe of interconnected tools that allow even the smallest enterprises to reach customers, grow revenue, and compete with much larger companies.

Digital advertising, in particular, has become a cornerstone of the modern small-business economy. The broader digital economy now accounts for an estimated $4.9 trillion in U.S. economic activity, supporting jobs, innovation, and free online services relied on by households across the country. Small businesses alone employ roughly 62.3 million Americans, nearly half of the private-sector workforce, underscoring just how closely digital policy and economic opportunity are linked.

The stakes have only grown since the pandemic. Post-COVID, the United States has seen an unprecedented surge in entrepreneurship, with roughly 21 million new business applications filed between 2021 and 2024. For many of these new entrepreneurs, online tools and digital advertising were not optional—they were the most affordable and effective way to launch, find customers, and survive.

Recent national polling from Internet for Growth and Echelon Insights shows voters understand what is at stake. Across party lines, Americans overwhelmingly agree that digital tools are essential for small business survival and community growth. In fact, 94% say digital tools are vital for small businesses, and nearly 40% have run a small business themselves or say that if they were starting one today, online platforms would be their first stop.

That experience shapes how voters view the policy debates happening in state legislatures and Congress. They see personalized advertising as a helpful way to discover local businesses, not a nuisance to be eliminated. They favor a single, consistent federal data privacy framework rather than a patchwork of state rules that small businesses are ill-equipped to navigate. Large majorities also oppose new digital advertising taxes—78% say such policies would raise costs for families and small businesses.

Voters also recognize the downstream consequences. Eighty-five percent agree that limiting digital advertising risks reducing access to the free online services households rely on every day, and 57% favor one consistent federal rulebook over state-by-state regulation. The survey found that 90% believe nearly every business depends on tools like online advertising to succeed. More than 80% say digital tools make it easier for small businesses to accept payments and remain competitive, and 67% say social media is essential for local business visibility. Taken together, the message is clear that digital policy is not an abstract technology debate. It is a kitchen-table issue.

However, many states are considering online data and digital advertising taxes that threaten to raise marketing costs for small businesses while delivering uncertain revenue outcomes. At the federal level, Congress has failed to resolve the costly patchwork of state laws small businesses are expected to navigate. The result is more complexity, higher compliance costs, and greater legal uncertainty for entrepreneurs who lack teams of lawyers and compliance officers.

These policies are often framed as efforts to hold large platforms accountable, but voters see the consequences more clearly. Large majorities believe regulations aimed at big technology companies could also harm small businesses, and worry that restricting digital advertising would reduce access to free online content and services families rely on every day.

Digital advertising and online platforms allow businesses of all sizes to compete, grow, and hire. They support millions of jobs and help fund the free services and information that keep the internet accessible. When those tools become more expensive or less effective, working-class families are often hit first through higher prices passed on by small businesses and the replacement of free online services with paywalls.

There is still time for policymakers to get this right. As lawmakers continue to debate federal privacy legislation and proposals affecting digital advertising, they should avoid policies that raise digital costs and instead focus on preserving the tools that fuel entrepreneurship and local growth. With the 2026 election approaching, Americans are looking for leaders who respond with clarity and urgency.

Brendan Thomas is the executive director of Internet for Growth, a coalition of small businesses, entrepreneurs, and digital creators committed to protecting access to affordable, data-driven digital tools.