Key Business Trends to Keep an Eye on this Year
Despite the COVID-19 pandemic, the number of small businesses has continued to grow over the last few years. It’s a testament to people’s desire to see their ambitions fulfilled, to have more financial freedom and to have more flexibility of time – to name a few.
According to the United States Small Business Administration, there were 30.7 million small businesses in 2019. That number continued to grow – unstirred by economic uncertainty – to 31.7 million in 2020 and 32.5 million in 2021.
As we dive deeper into this new year, it’s important to understand the health of the small business sector and the trends that will impact small businesses in 2022.
How Many Small Businesses are in the US?
Over the past couple of years, the Great Resignation and global impact of the COVID-19 pandemic have led millions of people across the US to start their own small business and venture into entrepreneurship. In 2022 alone, Intuit Quickbooks predicts 17 million new small businesses will be formed.
Furthermore, three out of five Intuit Quickbooks survey participants revealed they aspire to start their own business, and one in five of those plans to do it in 2022.
The Number of Small Businesses in the US Projected to Hire Employees
Job creation and diversification are essential to a healthy, sustainable economy. Intuit predicts one in three of those estimated 17 million new small business owners in the US will hire employees. That means job creation will be fueled by an astounding 5.6 million new small businesses, both via brick and mortar and online.
How Many Businesses in the US will Secure Funding?
According to Intuit Quickbooks, 67% of entrepreneurs plan to fund their new business with personal savings, while 49% reported they will apply for a small business loan from a bank or financial institution.
Extensia Financial offers the SBA 504 loan, which can support the acquisition, renovation, building or purchase of commercial real estate. Extensia and our sister company LendThrive offer flexible loan solutions that can help launch and scale small- and medium-sized businesses.
Business Trends: Employee Satisfaction
Better Work-Life Balance
Mental health has become a top priority in the workplace, Cathy Lanzalaco of Inspire Careers LLC told Forbes. Ensuring a proper work-life balance can lead to increased engagement, reduced turnover and improved productivity.
Hybrid & Remote Work Options
Communications solutions company RingCentral found 55% of employees surveyed expect a hybrid work environment. Remote workers feel safe and secure working from home, while others want to maintain a flexible schedule of in-person and remote work.
Small Business Trends: Marketing
Digital Marketing will Continue to Grow
Precious Williams Owodunni of Mountaintop Consulting explained to Forbes that digital marketing offers a cost- and time-efficiency that must be harnessed. Several digital marketing trends business owners can expect in 2022 include the growth of influencers, the increased use of LinkedIn, the integration of SEO, an increased spend on social media and much more.
Business Trends: Technology
Artificial Intelligence (AI) & Big Data will Increase Personalization
AI and big data will open the door to greater personalization, enhancing the overall customer experience. For instance, chatbots can be used to gather feedback from customers, answer frequently asked questions, suggest product recommendations and more.
Communication Applications will Grow in Importance
As remote and hybrid work remains, communication applications will hold newfound importance in everyday life. Video conferencing and messaging software are business must-haves.
Small Business Trends: Products or Services
Supply Chain Shortages Persist
Unfortunately, many predict supply chain shortages will continue, so small business owners must plan accordingly. Implementing strategic inventory management plans will be crucial to your 2022 business plan. It’s also important to be transparent with customers about any shipping or product delays.
About Extensia Financial
Established in 1998 and headquartered in Simi Valley, CA, Extensia Financial offers competitive commercial real estate loans. We partner with credit unions and connect them to investors across the United States. Additionally, we uniquely support and guide our partners through the entire loan process. Extensia Financial is a proud member of the AVANA Family of Companies.