Small businesses are huge contributors to economies across the globe. The role of the small business enterprise has continued to grow with these entities providing employment for a significant number of individuals. A lot of changes in different sectors are set to revolutionize how people do business in the next five years. When looking at the future of small businesses, the upcoming trends are the features to concentrate on. Understanding these patterns and what they mean for small business owners (SBOs) is essential for any entrepreneur with hopes of getting into this market.
The Age of the Freelancer
One thing technology has changed dramatically is the modern-day employee. The advent of electronic devices and the internet has allowed professionals to work from anywhere. A considerable number of companies these days get freelance workers on short-term contracts. Some merits present themselves when a small business does not have to be wholly tied to an individual. For instance, if a small retailer needs maintenance for its website, hiring a freelance IT specialist offers an inexpensive option. Such an entrepreneur doesn’t have to worry about paying medical benefits, paid leave, insurance, and other compensations that come with the traditional workers. This strategy also negates the need to train workers, which can be quite costly. The next five years will see more individuals join the freelancing pool and more small businesses capitalizing on the resources of such professionals.
Work from Anywhere
Another way that entrepreneurs cash in on the technology is working from anywhere. Setting up a business is an expensive venture with elements such as space, overhead costs, and registration, among others demanding significant capital. The use of applications and other online tools have made it possible to start and run small enterprises with minimal costs. For example, a musician teaching part time can use the online platform, Lessonface, to connect with students. By doing that, the need for commuting to meet students is eliminated. It also allows a music teacher to attend to more students without geographical barriers. Developers in today’s world are always tinkering with an app or another to cater to different consumer needs. The next few years will see the invention of more online tools that will simplify small business operations even further.
Big Tech for SBOs
One advantage large companies possess over small businesses is the ability to invest in the latest technological innovations. Automation machines have become readily available and are helping these entities work faster and smarter. Providing automation solutions for small businesses is one factor that will enhance their standing in society. Recently, some of these technologies have become accessible to small businesses. Take digital marketing for instance, which was a reserve of fortune 500 companies not so long ago, and now SBOs can invest in it without too much trouble. As the power of small businesses become more apparent, solutions will start being created to meet the automation needs of these enterprises. With the availability of tools that make it easier to attract customers and retain them, SBOs are set to enjoy a more dominant position.
Shifting Consumer Trends
Customers’ behaviors today are not what they were five years ago. Consumers have more say now when it comes to finding products and services. With the use of online resources to check out a company before utilizing its services, individuals have more power on their hands. Innovations are evolving consumer patterns at dizzying paces, and that is another factor that will impact the future of small businesses. Currently, niche markets are the in-thing, and that means a small business owner can concentrate on meeting demands of one niche market, leading to lowering of production costs significantly. The flexibility that small businesses have also gives them an edge when it comes to niche clients because they can scale up or down appropriately.
The online marketplace has made it possible for small businesses to enter different fields and access useful contacts. Even companies with limited financial capabilities are finding it possible to take advantage of the various opportunities present online. It is not just the marketing avenues but financing as well since more investors turn to online platforms to find moneymaking prospects. Whether an entrepreneur is starting a training company, website service, or retail store, the next five years look promising for SBOs.