Small and medium-sized businesses are considered the backbone of the economy all over the world. They account for about 90% of enterprises and 50% of jobs worldwide. More than 99% of American firms are small businesses. Small and medium-sized businesses have undergone significant changes over the past two years, adapting to the crisis and an extremely unstable economy. Thanks to the full-scale introduction of vaccines, government restrictions are gradually easing and as everyone adapts to the “new normal”, small businesses are playing a leading role in economic recovery.
Small and medium-sized business owners need to take into account trends and forecasts for the near future to improve their positions and be competitive in the next few years.
Digital technologies
In the modern digital economy, enterprises depend on the effective use of technology to support current business processes and increase competitiveness. Technologies such as artificial intelligence, machine learning, big data, the Internet of Things are becoming an integral part of modern business models of small and medium-sized enterprises.
The pandemic has become a powerful driver of the transition of small businesses from offline to online. 71% of growing businesses believe that they have survived the pandemic thanks to digitalization. With the transition of everything to digital technologies, the behavior of customers has also changed, their preferences and values have changed. Markets have become unstable, which means that customer expectations have also changed. The introduction of technologies will help to improve the quality of service and improve customer relationships, which is a priority for small and medium-sized businesses. Digital technologies not only increase productivity but also reduce costs, help automate business processes and manage employees working remotely.
Cloud services
Cloud services are the basis for scalability for many companies because they allow you to increase computing power and storage capacity by growing needs. Cloud services will help expand the infrastructure of a growing company, avoiding the expensive creation of your own. The advantages of implementing cloud systems are the simplicity, security, and scalability that cloud services provide. Cloud-based software and services will improve the efficiency and productivity of all operations at the lowest cost.
Artificial intelligence and the 5G network
5G network deployment and artificial intelligence (AI) are an important part of digital technologies for small businesses. The 5G network is a larger and improved version of the regular 4G LTE network. Experts predict that by 2024, the global penetration of 5G networks will be 40%, processing 25% of all mobile data. Artificial intelligence can help small businesses automate processes and improve efficiency. AI learns lessons from data sets, analyzes new information from various sources, and adapts processes as needed. This will help small businesses to be more competitive and personalize their offers according to the needs of each client.
Systems and processes
To succeed in 2022, small businesses need to start implementing various systems and processes of large businesses, such as enterprise management systems, financial management systems, personnel management systems, product development systems, supplier development systems, and voice response systems. The availability, scalability, security, and automation capabilities provided by SaaS products create benefits for small businesses. Using SaaS allows small businesses to compete with larger firms.
Solutions “as a service” allows you to reduce costs and redirect investments into new growth opportunities.
Remote work and gig economy
Gig economy (this is a business model that assumes a free and short-term form of “employment”, that is, the conclusion of a civil contract with the contractor (service contract /contract), and not an employment contract. According to statistics, the Gig economy in the United States has grown to about 77 million people in 2020 and is expected to grow even more. The transition to remote employment and the growing number of freelancers allow small business owners to expand their talent pool and find people who better match their culture and needs. Outsourcing expertise and equipment will help small companies save resources and time. Transferring a short-term project to a contract employee allows you to relieve stress and workload from the main staff, as well as provides budget flexibility.
E-commerce
E-commerce is still a trend for small businesses for the next 2022. 63% of small and medium-sized enterprises have a presence in the field of e-commerce, a third of them added it during the past year.
The growing number of influencers in social networks, combined with simplified shopping processes in brand boutiques, create competition for e-commerce giants. Therefore, the trend of small businesses in 2022 will be affiliate marketing in social networks.
Improving digital security
Due to the development of e-commerce, almost all small and medium-sized enterprises focus on data protection and take measures to ensure the security of information, whether it is the personal data of customers, company service information, or financial accounts. In the near future, data security using seamless authentication will be a priority for small and medium-sized businesses as they continue to move to the security of devices based on public key infrastructure (PKI), following the example of those that are already used to access, for example, mobile banking applications.
Summing up, we can say that small and medium-sized businesses need to invest in digital and cloud technologies to thrive and grow in the next decade. New technologies will contribute to the growth of small and medium-sized businesses by optimizing and automating processes, creating a better customer experience, efficient data analysis, and improving productivity.
You can always contact Openix Solutions to get expert advice or to develop a project.
