3 trends for small businesses to keep an eye on in the 2020’s

With the 2010's now officially over, businesses everywhere are looking to the past to predict trends in the coming decade. The increasing ubiquity of technology means the modern workforce is changing rapidly. For owners of small businesses, preparing for and adapting well to these shifts can mean the difference between success and failure. 

1) Millennial majority

As time passes, older generations retire from the workforce and are replaced by the younger generations. According to Pew Research, in 2017, the millennial generation became the one with the largest share of labor participation. Meanwhile, according to Inc., millennials are forecasted to make up half of the workforce by the end of this year, and 75% of it by 2025. This younger skew in the workforce brings with it many new challenges, such as increased use of technology, flexible working practices, and extensive pushes for diversity. Small-business owners will need to court millennials to get the talent that they want.

2) Re-trailing

As ecommerce becomes more popular and convenient, retail ventures become less viable. Many established retail brands have been forced to close their doors in recent years thanks to the market power of companies like Amazon. As a result, starting or running a retail focused business can be difficult. Entrepreneurs looking to start a retail project would be wise to consider aspects that can give them an advantage over ecommerce giants; for instance, foot traffic can make or break a successful retail store, as will offering products or services that can't easily be acquired online. Small-business owners who don't have advantages like this might consider phasing out their retail operations and instead running their business online.

Stores that allow easy sampling of products, such as clothing and technology outlets, are thriving despite the retail downturn.

3) Technological access

Technology has transformed the way business is done in modern society, and this trend will only continue in the 2020's. Innovations like automation and the internet of things (IoT) enable levels of efficiency that couldn't be dreamed of just a few years ago. Companies looking to excel will need to make use of these technologies to their maximum potential in order to have a leg up on the competition. Investing in network infrastructure, high quality computers, or fiber optic internet can improve productivity in many different ways, no matter what type of business is being done.

The 2010's were a time of great upheaval and change, and this pattern shows no signs of stopping now that 2020 is here. Small-business owners who stay in front of these developments and operate proactively will have an advantage over more traditional operations that do not. 

Categorised in: Business Law

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