What is the author's claim about technology adoption by small firms?

What is the author's claim about technology adoption by small firms?

• A. Technology adoption reduces costs for small firms.
• B. Technology adoption has no effect on growth.
• C. Technology adoption promotes growth for small firms.
• D. Technology adoption harms small firms.

Answer: (C)

The main idea being tested is how adopting technology influences growth for small firms. The author argues that when small firms embrace technology, it promotes growth by boosting productivity, enabling scaling, and expanding market reach. Technology makes routines more efficient (automation and better data handling), helps firms make smarter decisions with analytics, and opens new sales channels (online platforms, digital marketing). All of these together help small firms grow faster than sticking with traditional methods. This isn’t just about cutting costs; it’s about how the right tech enables small businesses to expand, serve more customers, and react to opportunities quickly. The other possibilities—that technology only reduces costs, has no effect, or harms growth—don’t align with the claim that technology adoption drives growth for small firms.

The main idea being tested is how adopting technology influences growth for small firms. The author argues that when small firms embrace technology, it promotes growth by boosting productivity, enabling scaling, and expanding market reach. Technology makes routines more efficient (automation and better data handling), helps firms make smarter decisions with analytics, and opens new sales channels (online platforms, digital marketing). All of these together help small firms grow faster than sticking with traditional methods.

This isn’t just about cutting costs; it’s about how the right tech enables small businesses to expand, serve more customers, and react to opportunities quickly. The other possibilities—that technology only reduces costs, has no effect, or harms growth—don’t align with the claim that technology adoption drives growth for small firms.