Why Is There a Surge in Small Businesses Since 2020: A Web Marketing Firm’s Outlook
Small businesses play a crucial role in the development of any countries economy. In fact, within a few years, some easily transition from being a small business to a franchise.
However, when Covid-19 hit the world, many businesses shut down and the ripple effect of those had the biggest impact on the small business sector. Despite this, the graph of the small business has been on an increasing trend, accounting for 31.7 million in the USA, according to Oberlo.
Here is a web marketing firm’s outlook on why there has been a surge in small businesses since 2020.
As mentioned earlier, with the shutting down of many businesses, the economies of all countries suffered a significant dip. This lead to many employees losing their jobs or even receiving a pay cut due to the small profits. To support themselves and their families, many people set up their own businesses to sustain their livelihood.
In addition to this, when work from home became the new normal, many people saved up time when it came to commuting and turned to establish a small business to be more productive.
This wasn’t just limited to people in the workforce. In fact, many teenagers and college students also set up their small businesses to kill extra time in their hands and make a few bucks.
- Economy and Demographics
This point accounts for the relationship between the economy and the demographic that makes up the majority of this sector.
As millennials and gen Z have entered the workforce, they still don’t make enough money to completely sustain themselves. Moreover, many people in this demographic reject the 9-5 work culture and want to have control over their careers. While for some, it’s the start for the passion.
- Side Hustle
As mentioned above, for many individuals, working one job isn’t enough to pay their bills. On the other, for some paying for their education is expensive. For these reasons, it’s quite common for people to set up their own small businesses to meet their expenses.
It might not necessarily be out of an obligation to meet expenses but just as another source of income. One can think of it as a backup plan if their current job falls through.
- Following Their Passion
Many people grew up wishing for certain things that weren’t easily available to be sold in the market. Similarly, some came up with solutions to consumers seemingly unnoticed problems and decided to make products that cater to them. While for some, they wanted to have a business of their own.
Given how easy it has become to own a business in the technical sense, it’s not surprising to see more and more people prefer being their own boss.
- Niche Market
Despite there being an endless list of markets and a customer base for each, there are still many industries that aren’t as specialised as say, the coffee industry.
As consumers have different preferences, there is always a demand for a certain product that isn’t easily available. Many small businesses cater to these demands and become a part of a niche market.
For example, if you need customized Attack on Titan merchandise or cosplay costumes, there is a small business that loves anime and manga, catering to this demand.
- Ethical Reasons
The saying “There is no such thing as ethical consumption in a capitalistic market.” is rather apt. Given how big businesses can easily tap into different sectors, exploit their workers, indulge in unethical business practices or simply disregard the climatic conditions the negative effects their business has on the environment, many people want alternatives to these businesses.
The business ethics of small businesses is one of their strongest suits and one of the many reasons why many people prefer to do business with them. Be it in terms of equal pay, strict rules against discrimination, ethically sourced materials or even supporting a good cause by donating a part of their profits.
In other words, people don’t want to spend their money on businesses that use unethical practices.
We hope a web marketing firm’s outlook helped you understand why there has been a surge in small businesses since 2020.
More and more small businesses are popping up in recent years. From people selling scrunchies to gardening tools to aesthetic stationery, whatever may be the reason behind them selling these, we as consumers must play our part and support them,
Toshiko’s Tip of the Day: If this article inspired you to open up your own business, you know which digital marketing agency will help you market it to the world.
If you need assistance in marketing your brand, our team of dedicated professionals at Sol Digital will be happy to help. With several years of experience and even more happy customers, we are the one-stop for all your marketing needs.