Many experts were laid off after the Covid-19 epidemic erupted in 2020. Others had their hours reduced or started working from home, giving them more opportunity to pursue other revenue sources.
• COVID-19-related lending schemes will be important, but they will not be adequate. In order to satisfy the capital demands of company owners in 2021, other sources of finance will be required.
• As conventional marketing and public relations get a makeover in 2021, digital marketing investment is expected to rise.
• As the COVID-19 epidemic continues into 2021, small companies will drive the adoption of emerging technologies, and AR/VR will shine.
As a result of these reasons, there has been a significant increase in the number of new startups and small businesses, many of which are still surviving as we approach 2022.
1. Online-offline hybrid business models
We began to see the emergence of digital nomadism a few years ago (Forbes). A significant portion of the workforce has decided to work from home or to pursue several freelancing jobs. As many people can confirm, this is a stepping stone to business. Many freelancers eventually go on to create their own consulting or professional services firm.
Priya Saiprasad, a venture capitalist, explains, “The paradigm of nine-to-five has been completely broken by the virus.”
The hybrid online-offline company strategy seems to be a trend that will last for quite some time. Even retail enterprises will be obliged to offer more online by 2020. Consumers, in my opinion, like the freedom to purchase both online and offline. Many clients, for example, like to do extensive internet research before visiting a shop, vehicle dealership, or other establishment.
2. Social Business
Mobile phones, in particular, have become a conduit for ecommerce, as have social media sites. Social commerce has grown naturally as a result of people’s usage of social media. As social media has grown in popularity, many individuals have begun to sell and acquire online social networking sites and applications, which is a logical progression. After all, people use social media, and people like and purchase stuff. Why not try selling on social media?
In fact, 30% of internet customers prefer to make purchases using social networking platforms like Facebook (BigCommerce). As a consequence, Facebook seized the opportunity to boost social commerce. Users may list their items for sale on Facebook Marketplace. It’s also connected with Facebook Messenger, so your consumers can set up a meeting or negotiate over pricing.
We anticipate additional social networks to follow suit in the next years, based on current social media patterns. Furthermore, many individuals are not just getting into social selling, but also becoming proficient at it. As a result, we should not only anticipate a rise in the number of persons participating in social commerce. In the next years, we can also expect social selling to become more sophisticated. This includes snazzy new digital tools and best-practice guides for each platform. One of the most compelling reasons for VC investors/ Angel investors to back social media entrepreneurs is their ability to attract an ever-increasing number of young users.
3. The Gig economy
The gig economy, often known as the “on-demand” or “shared” economy, has recently sparked as much controversy as it has enthusiasm and cash from venture capitalists looking for the next Uber or Airbnb. The gig economy is rather large (Mastercard, 2019). As of 2021, it is estimated to be valued $300 billion globally. Experts expect that it will be valued $455 billion by 2023, based on a 17.4 percent CAGR. In addition, the US gig economy accounted for 44% of the worldwide gig economy’s Gross Volume in 2018.
Over 59 million individuals work in the gig economy in the United States today. It also employs roughly 36% of the American workforce, who have together contributed $1.2 trillion to the US economy (Business Wire, 2020). Furthermore, it contains decacorns. If you’re unfamiliar with the word, decacorns are private corporations with a market capitalization of $10 billion or more.
Of course, saying it is easier than doing it. When it comes to running a gig-based company, there are several dangers to be aware of. Owners must strike a balance between demand and supply, just as the Uber algorithm does. And, as you may know, perfecting this takes a long time. In addition, when markets change, the algorithm must adapt. However, if you’re working on a small scale, spreadsheets could suffice.
4. The market is becoming narrower.
The majority of individuals want to stand out. This is a commonly held opinion. After all, no one wants to show up to a party wearing the same outfit as the other person. Furthermore, a rising number of individuals seek items that are very particular and, in certain cases, customisable. To put it another way, being customer-centric will bring you along this path. Furthermore, a high level of customer-centricity fosters the growth of specialized markets.
Many new niches are expected to become quite successful in the next years, according to analysts (Shopify, 2021).
Most venture capitalist and entrepreneurs boast about their company’ greatest prospective market. Some entrepreneurs, on the other hand, are deliberately thinking small.
Rather than aspiring to be the next Google Inc. or Amazon.com Inc., niche startups create products for influential, high-value audiences outside of the mainstream, such as tens of thousands of people suffering from a rare disease or a few hundred thousand scientists working in the world’s research labs.
5. The Growth of Subscription-Based Businesses
According to a recent study, the worldwide subscription and billing business would be valued $11.1 billion by 2027, up from $3 billion in 2020, with a CAGR of 14.4%. This is due to two key factors: an increase in current brand subscribers and an increase in new subscription-based models. Furthermore, there are several end-user industrial sectors. Telecom, healthcare, media and entertainment, retail, and information technology are just a few of them. And, as a result of the pandemic’s forced isolation from the outside world, 22.5 percent of subscription companies saw their growth rate accelerate (ZDNet, 2020).
Getting a venture capitalist to invest in your subscription service is a terrific method to pump significant funds into your already-growing company.
6. Empathy and Emotional Intelligence
The importance of emotional honesty and modeling emotional intelligence cannot be overstated. Empathy is no longer a luxury, but rather a valuable tool for coping with life’s and work’s obstacles. You don’t need to know or divulge every detail of an employee’s (or your own) situation, but being able to identify moods or behaviors and reacting with care is appreciated. It has always been about the people behind the ideas in venture capital and entrepreneurship — not the value or the amount of money raised, but the people who make a business great.
7. Getting the Most Out of Google
Google’s maximum usage will be the game-changer in 2022. Google My Business, local services, ads, and SEO are all examples of this. Owners of small businesses must understand how to utilize, interpret, and implement Google lead generation.
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8. Personal branding
It will be crucial to master not just corporate branding but also personal branding. Small- and medium-business owners, in my experience, tend to hide behind their company’s brand and refuse to reveal who they are or to expose themselves as vulnerable and human. As an owner, the only way to gain loyalty is via emotional connection, which comes from being true and genuine, revealing the human aspect of your company, and presenting you and your staff. It is critical to create and maintain a personal brand in today’s world. This applies to both entrepreneurs and investors (Venture capitalist/ angel investor)
9. Younger Entrepreneurs
The recent “Great Recession” produced economic circumstances that made finding good-paying work difficult for Millennials. As a result, many people seek for non-traditional professional opportunities, such as starting a company (AllBusiness.com). As a result, today’s entrepreneurs are younger than ever before. Other entrepreneurial tendencies emerge as a result of this.
Many young individuals are driven to succeed as entrepreneurs. Furthermore, when it comes to business, they have an optimistic approach (Guidant Financial, 2019). Furthermore, small company owners feel optimistic about the current political atmosphere. They like their positions as business owners as well. And they’ll probably keep doing so for a long time.
10. Green Businesses
Many businesses are aiming for environmentally friendly goods, as described in the preceding section. Today’s portion is rather large. Green consultancy, green app development, energy efficiency audits, and recycling firms are all part of the eco-conscious movement (World Forum Disrupt). This also covers the green items discussed before.
Environmentally concerned legislation, goods, and information campaigns have influenced consumer perceptions. Indeed, the car sector, which has been highlighted as a source of pollution, is gradually becoming more environmentally friendly as a result of the pressure.
On the one hand, as compared to other high-tech enterprises, venture capitalist may be more willing to invest in green ventures.
How Can You Take Advantage of These Business Trends?
Many (if not all) of these themes are intertwined, as you may have seen. The same circumstances that allowed entrepreneurs to manage enterprises from home are, for the most part, the same ones that allowed worldwide corporations to flourish. Furthermore, the commercial and social developments that evolved from the same circumstances are closely linked, and, more crucially, are positioned to assist enterprises in coping with the epidemic.
Take the growth and acceptance of disruptive technologies, for example. This has aided in the growth of specialized markets in several sectors. Furthermore, this sparked a trend toward more specialized entrepreneurship and business education. Furthermore, these specialist education courses are in response to broader trends such as the desire for greater diversity, environmentally responsible practices, and general social responsibility.
Recent entrepreneurial data back up this assertion. The present trend indicates that more businesses will concentrate on assisting society as a whole.
There is no such thing as a trend that exists in a vacuum. All of these factors influence the present socioeconomic environment in distinct ways. Recognizing the interrelationships between them is prudent for entrepreneurs, especially prospective entrepreneurs.
Greener meadows and bluer waters with less fierce rivalry are often found around the boundaries. Finding the correct and ripe niche for starting a small company might take a long time. It, too, need the perfect circumstances to flourish.
Technology, on the other hand, will play a larger role in business in the future. All of the aforementioned developing entrepreneurial themes are influenced by technological advancements and applications. The rapid adoption of SaaS has already altered the way entrepreneurs do business.
However, they are just that: tools. It is up to the individual and the organization to make the most use of them. For example, read our article on the 10 methods to become a more successful entrepreneur if you want to understand more about what it takes to be a better businessman today.