The economic landscape is rapidly evolving.
Since the pandemic hit, we’ve experienced a massive global shift in the marketplace. Small business has exploded, popping up at an unprecedented rate.
Much of this can be traced to the widespread layoffs and unemployment caused by social distancing measures. Many people lost their jobs, forcing them to get economically creative.
With no consistent income, many entrepreneurial types began looking for ways they could leverage their existing talents into new business ventures. They began working as freelancers, contributing to the huge increase in new small businesses.
These new small business owners proved that it was possible to go into business on your own. Those still in traditional positions took notice.
The great resignation ensued. Frustrated by wage stagnation and unnecessary restrictions, tons of employees in traditional careers decided to try working for themselves.
These factors created the perfect environment for a flurry of new small businesses. But none of this would have been possible without technology.
The Impact of Tech
From Zoom meetings to artificial intelligence, small businesses have an exceptionally large array of new tools at their disposal.
The proliferation of these technological advances means that small businesses can now launch with less resistance than ever. They don’t need many employees, they don’t need boardrooms, they don’t even need to have a physical location.
Thus, remote businesses have risen to prominence.
Operating a business remotely has a number of distinct advantages. For starters, remote businesses don’t need to pay expensive rent prices.
For a brand new business, renting out an office building or a storefront is often financially impossible. With remote businesses, this barrier to entry is eliminated entirely.
This means that more entrepreneurs can launch their businesses. They don’t have to be particularly wealthy prior to starting. A good idea and a strong work ethic are all it takes to make it.
But the innovations don’t stop there. Technology is also largely responsible for the success of these many small businesses.
In prior economic environments, this many small businesses would likely be impossible. This is because the amount of competition in any given area would be far too fierce to sustain this many businesses at once.
Now, small businesses are thriving in greater numbers. They somehow manage to find customers regardless of the high market saturation.
The reason: digital marketing.
Digital marketing has completely changed a business’ ability to connect with their target market. Traditional factors like market size and geography are far less relevant than they once were.
Thanks to social media and targeted ads, customers can find a small business regardless of where it is or how niche its products are. This means that a business doesn’t have to appeal to the general population anymore. Businesses can be much more granular in their offerings, and because they can connect directly to the people who are likely to purchase from them, they can still succeed.
As a result, small businesses are thriving. They can each corner a very small subset of the market, meaning they stay profitable while leaving other small businesses to cater to different demographics.
Thanks to technological innovation, small businesses are easier to start, faster to grow, and able to thrive in greater numbers.
While the last few years have had plenty of hardships, there is a silver lining to be found in the way we’ve leveraged technology.
Technology has made small business more accessible and realistic for many entrepreneurs. In turn, this means more people are able to pursue work they are passionate about while the market benefits from an explosion of niche offerings.
The future of small business is remote. Hopefully, this will continue to empower entrepreneurs to build and innovate.