At the beginning of 2020, business pundits predicted a big year for UK’s small and medium-sized businesses. This projection was despite the political and economic uncertainty.
In fact, one of the biggest predictions was that small businesses would thrive in the new year. Some even thought 2020 would be the best year on record for new businesses in the UK. From AI to sustainability, several business trends were making the rounds.
Fast forward to March 2020, the country entered complete lockdown as uncertainty loomed ahead.
The novel coronavirus pandemic forced as many as 67% of small businesses out of operation.
Simply Business reports that:
- Small businesses expect to lose £11,779 on average. This includes earnings, lost orders, and total revenue. The lost revenue amounts to be £69 billion for about 5.8 million small businesses in the country.
- An estimated 230,000 small and medium enterprises (SMEs) have shut down permanently.
- A third of entrepreneurs (about 35%) have borrowed money from friends and family.
- One in 10 (about 8%) of business owners took private bank loans to stay afloat.
But there is good news. 85% of these small business owners intend to remain self-employed while 10% are already planning a new business. Also, 42% of business owners say that they rely more on technology now to run their business. 25% of entrepreneurs and their staff learnt a new skill during the lockdown.
By the looks of it, 2021 is going to be a challenging year but also a year of opportunity.
Small business trends – What to expect?
Rapidly changing technology is putting additional pressure on businesses to fulfil consumer demands. Whether it’s the power of pivoting or remote working challenges, adaption is the key here. All this has sparked a series of business trends that will have a lasting impact on (Small and medium-sized enterprises) SMEs.
Tradeshows, events, and seminars are getting a facelift. The digital marketing spend is seeing a jump. Small businesses are also embracing developing technologies like augmented and virtual realities. With this, businesses can respond better to the challenges they might be facing.
In this article, I’ve highlighted key areas where SMBs can expect disruption and the changing trends in business. I will discuss the emerging trends in Ecommerce and customer service.
What to expect within the eCommerce sector
Analysts have noted that eCommerce now accounts for over a quarter of all retail sales in the UK. This number will increase steadily and reach one-third of all sales by 2024. So, SMEs must be ready to embrace the eCommerce model if they want their business to thrive.
Review of businesses on chart.
Leave a Comment