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Wednesday, May 29, 2024
HomeSummary6 Important Small Business Trends (2023-2025)

6 Important Small Business Trends (2023-2025)

In 2020, the rate of new business creation accelerated at the fastest pace in over a decade, with the majority of these being small businesses. This is expected to have a significant impact on the US and global economy in the coming years. The concept of a small business is evolving, with about 80% of the over 30 million small businesses in the US having zero employees. This trend is expected to continue, with platforms like Amazon enabling millions of solo entrepreneurs.

Amazon’s 2020 SMB Impact Report revealed that there are approximately 700,000 independent Alexa developers creating apps for the product. Furthermore, independent authors have earned over $1 billion through Kindle Direct Publishing since its inception in 2007. Amazon’s Delivery Service Partner program, launched in 2018, has attracted over 2,200 small businesses to deliver packages, employing 95,000 people. The Apple App Store and Google Play Store have provided similar opportunities with their vast number of apps.

Platforms like Substack and Ghost are also providing new opportunities for online publishers. Substack, which has seen its search interest grow by 9,000% over the last five years, allows individuals to start their own newsletter businesses, handling subscription management and distribution. The platform has over 500,000 paying subscribers. Ghost, on the other hand, provides open-source software for bloggers and media companies, making it easy to start a blog or media business without taking a cut of the generated revenue.

Small businesses are increasingly turning to e-commerce. A 2021 survey by Intuit found that nearly three-quarters of small business respondents are selling products or services online. Services like Shopify, Etsy, and Amazon have seen a record number of new merchants join their platforms. For instance, Etsy reported a growth of approximately 62% in active sellers in 2020 compared to 2019.

Key Takeaways:

  • In 2020, the creation of new businesses increased at the fastest rate in over a decade, with the majority of these being small businesses, indicating a significant future impact on the US and global economy.
  • Large platforms like Amazon, Apple App Store, Google Play Store, and Substack are offering new opportunities for entrepreneurs to start small businesses, which are largely solo operations, changing the conception of what a small business can be.
  • The shift of small business commerce to online platforms is increasing, with a 2021 survey revealing that nearly three-quarters of small businesses are selling products or services online, and platforms like Shopify, Etsy, and Amazon seeing a record number of new merchants joining.

“In 2020, new business creation accelerated at the fastest pace in over a decade. Almost all of these were small businesses. Because of this, small businesses will likely have an outsized effect on the US and world economy for years to come.”

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