Highlights risks of AB 1776, proposed legislation that could break apart tools that help businesses thrive
San José, CA (May 27, 2026) — A new report commissioned by the Silicon Valley Leadership Group and conducted by RXN found that 81% of California small- and medium-sized businesses (SMBs) say digital tools play a key role in their business’s success. The findings come during Small Business Month as California lawmakers consider the COMPETE Act (AB 1776), legislation that could break apart many of the tools valued by small business and which could negatively impact the investment and growth underpinning California’s dynamic innovation ecosystem.
Integrated digital tools and services help keep small businesses competitive and deploy effective marketing strategies to reach and retain customers. For example, 66% of California SMBs say integrated tools like Google Business Profile save them time and money by helping their customers find accurate, up-to-date information about their businesses. AB 1776 could lead to the removal of services like Google Maps and Reviews from Profiles, leaving small businesses struggling to attract new customers and grow.
“Small businesses are an essential engine of California’s economy and innovation leadership, employing millions of workers and creating jobs across every region of the state,” said Ahmad Thomas, CEO of the Silicon Leadership Group. “These small businesses are heavily reliant on integrated Integrated tools, which allow them to stretch their dollars and conserve time and resources. It’s imperative that we foster a policy environment that supports California’s small businesses, fosters healthy competition, and spurs greater investment and growth.”
The report also found that over half (52%) of California SMB leaders rate the state’s economy as “not good,” and most (79%) say digital tools are important to navigating inflation and economic uncertainty. Without access to integrated tools and services, California SMBs will struggle to grow, compete, and succeed in today’s economy.
About the Silicon Valley Leadership Group:
The Silicon Valley Leadership Group (SVLG) is the leading business association representing the innovation economy and its ecosystem. Founded by David Packard of Hewlett-Packard, SVLG has worked for nearly five decades to address issues that affect the region’s economic dynamism and quality of life. Today, SVLG is focused on accelerating the next era of Silicon Valley leadership, activated by our Institute for California AI Policy (ICAP) and three new Centers of Expertise (COE): Technology & Innovation, Business Competitiveness, and Civic Impact. SVLG members collectively provide nearly one in every three private-sector jobs in Silicon Valley and contribute trillions to the global economy. For more information, visit svlg.org.
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