2023 Small Business Trends That You Should Look After

Loans may not be an option for many business owners, particularly for companies that suffered large financial losses during the turbulent recent years. In those circumstances, finding alternative sources of money might be essential to get funding.

According to venture capitalist and co-host of the Amazon Prime series Wolf PAC Courtney Lawless, “Alternative sources of capital will probably also play an important role in keeping businesses solvent.” Grants, fintech, venture capital, angel investors, peer-to-peer lending, and crowdsourcing are a few examples of alternative sources. These are crucial since many companies may struggle to meet the requirements of conventional funding sources.

Increased investments in social media, user-generated content, and entertainment are expected in 2023.

With billions of users across the top social media platforms, marketers have been increasingly on it.  According to a forecast by the advertising firm Zenith Media, social media will account for 57% of all global ad spending by the end of the next year.

Social media advertising is becoming more significant, but so is the degree of competition. Small businesses should focus on a multichannel organic strategy to build an audience and increase brand awareness. 

Marketers must focus on their most loyal clients to create UGC (User Generated Content), according to Zarnaz Arlia, CMO of customer experience platform Emplifi,  “A great and cost-effective way to identify and take advantage of your biggest brand advocates is through strategic UGC efforts.”

Brands should promote and maximize their value by using branded hashtags, contests, exciting offers, etc.

The ability of software to create literature, music, graphics, and other creative output from a brief description is known as generative artificial intelligence (AI). Although the technology has only just become widely used, it has a significant impact on many corporate operations. AI can be used to write marketing copy, respond to customer service inquiries, solve problems, correct coding, etc. on the other hand,  generative AI can also assist with product design. 

Automation powered by AI will increasingly collaborate with technologies that companies now use to streamline a variety of operations. According to e-commerce CEO Wolfe Bowart, logistics operations will shift towards automated tasks, including robotic delivery systems and warehouse automation. 

• Businesses are more concerned about benefits and incentives for their workers. Some of them may offer childcare incentives, as taking care of their children is a top priority for parents who have to work late shifts or lengthy hours after the end of the school day. 

• The pandemic’s impact on work culture has accelerated the adoption of flexible work arrangements. In 2023, more companies are expected to offer options like remote work, flexible hours, and hybrid models that allow employees to balance their personal and professional lives. Flexible work arrangements not only improve work-life balance but also cater to the preferences of the modern workforce, enhancing job satisfaction and productivity.

• Financial stress can significantly impact employees’ performance and well-being. To address this, companies are incorporating financial wellness programs into their benefits packages. These programs may include financial planning workshops, retirement savings guidance, student loan assistance, and access to financial resources. Providing financial wellness support demonstrates an employer’s commitment to the holistic well-being of their workforce.

In recent years, consumers have become increasingly conscious of the environmental and social impact of businesses. SMEs can seize this opportunity by incorporating sustainable practices into their operations. From eco-friendly packaging and renewable energy adoption to ethical sourcing and fair labor practices, a strong commitment to sustainability and social responsibility can resonate with customers and differentiate an SME in a crowded market.

Collaboration can be a powerful tool for SMEs to pool resources, share knowledge, and tackle common challenges. Networking with other businesses, industry associations, and government agencies can lead to strategic partnerships, joint ventures, and access to valuable resources, such as funding and mentorship programs. Building strong relationships within the business ecosystem can significantly enhance an SME’s growth potential.

The digital revolution has transformed the way businesses operate, and SMEs can capitalize on this shift by using cloud computing, data analytics, e-commerce, and social media, which offer cost-effective solutions to streamline operations, reach a broader customer base, and gain valuable insights into consumer behavior.