The way we do business has changed exponentially and 2022 brings in new trends in entrepreneurship. Building a business from the ground up is a challenge that takes effort, time, skill, and resources. The next big challenge is how to keep your startup stable and growing.
The business industry is fast-growing and ever-changing. Business leaders need to think on their feet when making decisions that will help the company develop. You need to be adaptable to changes in the environment, market, and community.
What Is Entrepreneurship?
Entrepreneurship is the process of building up your own company from scratch. To start a business, you will need to put a business plan together. The business plan needs to outline how you want to run the business. As an entrepreneur, you will have to take risks and make good decisions that will help you to make a profit.
What is the Current State in Entrepreneurship?
The pandemic devastated the global economy. Not only have businesses been forced to close because of lockdowns, but even production, manufacturing, and international trade slowed down significantly. When the world began to get back onto its feet, the changes transformed trends in entrepreneurship.
According to a World Bank report, companies experienced a drop in sales at the beginning of the global pandemic. Data from over 120,000 businesses revealed an average decline of 27 percent from October 2020 to January 2021. 25 percent of the companies included in the report saw a massive 50 percent cut in sales and revenue compared to pre-pandemic numbers.
Entrepreneurs today continue to face a wide variety of challenges because of Covid-19. Given that the virus is not totally eradicated, government-mandated travel restrictions keep businesses and other services from going back to normal operations. To deal with the restrictions, entrepreneurs try to adapt by changing standard operating procedures (SOPs) to fit the new normal.
Employee layoff was one of the biggest challenges businesses faced. Some companies closed down or had to place operations on hold. This meant that people felt very uncertain as employment became unstable. Despite this, 65 percent of company leaders strived to hold onto their employees by cutting wages, reducing work hours, and offering leave.
Top Challenges in Entrepreneurship
- Competition: In business, it is difficult to develop a unique plan or idea and competition is a given. More so when trying to compete against established companies as a start-up.
- Hiring: Manpower is crucial for your business to succeed. You need a competent and trustworthy person to handle the business’s day-to-day activities. Choosing someone who is not suited to the position could eventually cripple it.
- Marketing: You need a marketing budget and plan. Take note of marketing trends as these will influence your strategy. You need to establish your brand and presence both online and offline as quickly as possible. If you do it well, you’ll stand out amongst thousands of businesses.
- Cash flow and budget management: You need to keep tabs on how much is coming in and what you’re spending. Be on point when handling accounts to help your business stay afloat. Proper budgeting will help you to keep a positive cash flow and stop you from overspending.
What Are Some Future Trends in Entrepreneurship?
Successfully establishing a startup business is one thing. However, the real challenge comes in getting your business to grow. Growth can come through developing new products, expanding to a new location, or providing a new service.
However, it is important to study market trends to ensure that your decisions will work based on the current situation. Below are some of the entrepreneurship trends that may influence marketing and business strategies in the near future.
Mobile commerce refers to online shopping transactions using a mobile device, tablet, or laptop. Because of the dangers of the coronavirus and restrictions put in place, people quickly turned to digital stores and online shopping platforms.
Why is this Trend Important?
Data from Statista shows that there are over six billion smartphone users, today. Reports indicate that the number will significantly increase to 7.5 billion by 2026. Mobile commerce takes advantage of the versatility and convenience smartphones and other mobile devices provide their users.
Remote Business Operations
Many firms have recently transitioned to a remote work setup. Although the advantages and disadvantages of business operation conditions are still up for debate, it is safe to say that remote work provides freedom, accessibility, and versatility for management and employees.
Why is this Trend Important?
Remote work allowed companies to continue operating despite the lockdowns and travel restrictions suggested by the CDC. But aside from this, remote business operations allowed companies to function without requiring an office. This significantly saves on overhead costs.
The Internet allows people to connect and communicate with each other internationally. Businesses can run transactions and meet clients online regardless of location. Using the power of the Internet, startups can be composed of international teams and instantly become global businesses.
Why is this Trend Important?
Global businesses open doors to clients and employees. Given that remote work is taking off, companies also have the freedom to hire people that are not within their geographic location. Startups can find competent people in other countries that could be more affordable in terms of labor cost. Simply put, a business venture going global and digital can significantly cut down on operation costs.
Social Commerce and Micro-Influencing
Statistics show that over 50 percent of the world’s population uses social media. A person spends an average of two to three hours browsing through social media platforms, every day. Social commerce is a form of ecommerce that uses popular social media platforms such as Facebook, Tiktok, Youtube, and Twitter.
Why is this Trend Important?
Given that people spend a significant amount of time on social media platforms, social commerce is a smart marketing strategy as it provides users with accessibility. The primary target of social media marketing is the millennial generation, who are more likely to spend hours on their phones.
Micro-influencing using these social platforms can also be beneficial for smaller businesses. Smaller influencers that have around 10,000 to 20,000 followers on social media can provide effective marketing. It’s important to put a marketing budget together to enable you to partner with these social entrepreneurs. It is a cost-efficient influencer marketing strategy that can advertise your brand to thousands of people without breaking the bank.
Search engine optimization (SEO) can no longer provide websites with long-term and sustainable traffic. This is because the web is crowded with millions of sites using the same SEO strategies. Email marketing achieves organic reach to potential and current customers by sending advertisements, newsletters, and sales directly to the user’s email address.
Why is this Trend Important?
SEO is still a reliable tool to improve web traffic. Trends point to the rise of email marketing as social media organic reach starts to decline. The use of email marketing gives digital marketers control over the website’s mailing subscription. Email marketing allows entrepreneurs to create relationships with customers. It also helps to promote the brand and establish an online presence.
Essential Entrepreneurship Skills for Today’s Professionals
Being your own boss can be overwhelming. Professional skills will help to break through tough times. We’ve listed some of the most crucial entrepreneurship skills aspiring business owners should master, below.
- Communication skills: Confidence in speaking and communicating is crucial when negotiating with other business owners. Good communication skills can also help in establishing networks to expand the business through clients and investors. Entrepreneurs should know how to effectively communicate with their employees, suppliers, competitors, clients, and other business professionals.
- Business management skills: Before entering the field of entrepreneurship, aspiring business owners should have a basic understanding and experience in business management. It is not necessary to have a business education or attend a business school. However, knowledge about basic management and financing can go a long way when building your company and brand.
- Personal drive for growth: Young entrepreneurs need to view every entrepreneurial opportunity as a chance for growth. Having a growth mindset allows even the most successful business tycoons to see potential in everyone and everything.
Current Trends in Entrepreneurship: Take the Next Step in Your Career
It is easy to dream about establishing your own business. Being an entrepreneur means that you are your own boss and have liberty and control over your finances. You have the freedom and flexibility to work the hours you want to work without being stuck in a corporate office.
When looking at business opportunities, it is important to spend a significant amount of time studying and analyzing key trends in entrepreneurship. This will help guide you in your future growth. You can make smart leaps and bold decisions that will set you apart from the competition.
Trends in Entrepreneurship FAQ
Key trends in business and marketing tell entrepreneurs what is popular and beneficial. This will help you to adapt to a fast-changing market. Analyzing trends in entrepreneurship can also guide you in making effective business plans and marketing strategies.
Business education is not necessary to be an entrepreneur. Although knowledge about management, finances, and economics can significantly help in building a startup. Enrolling in online courses and seminars can help young entrepreneurs learn about basic business concepts. They help give a deeper understanding of budget management, marketing strategies, and networking.
Business trend analysis plays a crucial role in business planning and strategy. This analysis helps to find resolutions to a particular scenario that can affect or influence your business. Trend analysis evaluates data and values and observes the changes that occur. Entrepreneurs can use these values and trends as a baseline for an effective strategy.
Remote work has altered the nature of communication between team members. The use of apps and programs to communicate and coordinate has its drawbacks and advantages. Tracking employee productivity and progress can also be challenging in a remote work setup. Assigning tasks and coordinating projects require a different approach when using online platforms.
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