3 small business trends to watch out for in 2023

2022 is drawing to a close, and it's time to turn our attention to the year ahead. Perhaps surprisingly (given the devastating economic aftermath of the COVID-19 pandemic), it's been a strong year for small businesses. Consumer confidence in small to medium-sized enterprises (SMEs) is at a record high when compared to customers'' trust in larger corporations.

SMEs continue to fuel the majority of the American economy and account for nearly two-thirds of all jobs in the private sector. Can we expect this positive state of affairs to continue? What's the outlook like for SMEs in 2023? And, what implications do these predictions have for small business owners? Let's explore:

Increasing digitization and automation

We can anticipate the continued exponential adoption of modern computerized technologies in small business. This will include cloud computing, artificial intelligence and even augmented or virtual reality in a handful of industries. Some applications include smart inventory management systems, customer support software and delivery route programs. To keep up with their competitors, SME owners will need to conduct a thorough analysis of their business operations to determine the areas in which they can utilize digital tech and/or automated systems.

Using VR in business will become more commonplace.

Continued remote working

Of course, whether this particular trend will apply to your business depends on its nature. That said, we can expect working from home (WFH) to be the norm for a little while longer. Up to one-fifth of employees work remotely at least part of the time, although some surveys suggest that number is as high as one-quarter. Furthermore, two-thirds of employers are accommodating remote work, citing lower overhead expenses and increased worker productivity. Additionally, workers are increasingly citing the option to work remotely or follow a hybrid work system as a determinant of whether they'll apply for or stay at a job. There's no indication that any of these facts will change any time soon.

Rising push for sustainability

The shift of consumer preference toward sustainable businesses is nothing new. For years now, customers have shown loyalty to brands that demonstrate a dedication to reducing their negative impact on the environment. As the effects of climate change continue to worsen, we can safely foresee even greater demand for environmentally friendly goods and services. Therefore, it's recommended that SMEs that haven't reviewed their efforts to minimize their carbon footprint should do so. After all, your competition is, and you need to stay in the race.

Should you need any assistance with legal compliance relating to the above topics, don't hesistate to reach out to the Law Offices of Donald W. Hudspeth, P.C.

Categorised in: Arizona LLCs, Starting a Business in Arizona

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