Trends in Business

... From Biz2Biz NWA April 2009

By Janie Pritchett-Clark

Where is your business headed? With the help of Small Business Labs, here’s a look at social, technology and business trends impacting small businesses for 2009.

Economic Trends

1. Small business innovation. Driven to improve productivity and increase customer value, small businesses will re-evaluate, re-design and refine, creating a wave of small business innovation. Look for new opportunities as we focus on cash flow, cost containment, customer retention and survival.

2. Government’s role increases. You could eye corporate malfeasance and regulatory failure as the cause; the effect is greater government intervention. Market capitalism should stay strong, but governments on a global scale will start taking a more active role in managing their economies. That means small businesses will need to stay apprised of all the policy and program changes that will affect them.

3. Infrastructure goes global. Look for small businesses to benefit directly and indirectly from government contracting programs. In the US we’ll likely be focusing on bridges and roads, alternative energy, transportation, clean tech and education. The trend is global. China, Japan, the European Union and other countries have large infrastructure spending programs on the horizon as well.

4. Small businesses numbers rise. The unemployed from the professional sector is likely to turn to self-employment. Failures rates will rise as well, but probably not enough to offset the number of new small and personal businesses.

5. Small business globalization slows. It may be late in the year before small business exports pick up. In the meantime, small business globalization will be affected by the economic slump, currency market, and local market focus.

Demographic Trends

6. Baby boomers go back to work. Retirement plans were derailed for many in 2008 as the value of their homes, retirement savings and inheritances fell through the bottom. Chances are strong they’ll go back to work self-employed.

7. Gen Y goes into business. Look to those Gen Y entrepreneurial minds joining the ranks of small business, gravitating to personal, environmental and technology services.


Technology Trends

8. Mobile computing grows. It’s headed for the US mainstream and there’s no turning back. From laptops to smart phones to netbooks, look for rapid growth in navigation systems, location-based services and mobile search.

9. Cloud computing grows. Small business stands to benefit tremendously from cloud computing – internet based technology where real-time resources are provided to users who have neither the knowledge, expertise nor control over the technology infrastructure (the cloud) that supports them – all those apps you can download and add to your desktop and phone. For small businesses, cloud computing effectively lowers capital costs and turns fixed costs into variable costs.

10. Small business marketing grows online. It’s complex but valuable, and small business will continue to learn how to grow their online marketing skills to improve customer acquisition and retention.