12 Entrepreneurship Trends to Watch in 2023
The business landscape is rapidly changing driven by new technologies, evolving customer demands, societal shifts, and the COVID-19 pandemic. This transformation yielded location-independent companies connected global teams, niche markets, and disruptive sectors.
Over the past few years, there has been a sharp increase in small business owners and first-time startups. People are choosing to follow their professional dreams over traditional career paths. While the pandemic has been a major incentive, several market trends have fueled this growth in entrepreneurship, and it’s expected to continue in 2023 and 2024.
Let's look at the latest entrepreneurship trends to watch in 2023 and beyond:
1. Working from Home & Hybrid Work
We started experiencing digital nomadism a few years back. A sizable portion of the workforce has chosen to work from home or to continue working multiple freelance jobs. With the rise of eCommerce, the impending rollout of 5G networks, the prevalence of social media, and the innovative computers and tools available in the market, having a physical space is no longer necessary to establish a successful business.
This paved a way to entrepreneurship; many people who being freelancing eventually launch their own business. This also increases employment options for other established entrepreneurs; remote labor eliminates a major expense by not having to pay for office space, thereby saving money on electricity, overhead, and equipment maintenance.
In the past, remote work was only possible for a few industries. However, the pandemic revealed that many people could work successfully from home. Many entrepreneurs work exclusively or mostly from home these days, especially those who manage startups with small workforces.
On the other hand, numerous businesses are trying to shift their employees back to the office. Not every employee or business owner wants remote work as a long-term alternative, and not every type of business can benefit from remote work either. This is why we will likely see most businesses embrace a hybrid work model. Employees and contractors will retain the possibility of working in a remote location, while also encouraging in-person collaboration.
2. Globalized Business Powered by Remote Work
Globalism was made possible by the same conditions that brought forth digital nomadism. While digital nomadism allowed entrepreneurs to manage their business from the comfort of their homes or anywhere in the world, globalism is about working with international teams to launch, sustain, and grow their businesses.
Globalism has been around for several years already. It was thought to be feasible for bigger companies though, rather than startups or SMEs. However, many entrepreneurs started their businesses with globalism already incorporated in their DNA. With remote work consistently growing post-pandemic, and the majority of employees preferring remote full-time jobs, expanding globally becomes more viable for smaller companies. In years to come, working with a global mindset will largely continue to be the norm among top-performing businesses.
“It is not the strongest or the most intelligent who will survive, but those who can best manage change.”
3. Mobile Commerce
The guiding principle of modern business is to get to customers wherever they are. This fits into the powerful trend of being customer-centric. Today’s consumers are glued to their phones for a significant portion of the day; on average, people clock in around three hours and fifteen minutes on their phones.
While the internet and the rise of mobile technology allowed for digital nomadism and further globalism, it also paved the way for an enhanced mobile commerce experience. Entrepreneurs are now able to make progress against their competitors from the comfort of their homes.
Companies that want to succeed online need to invest in mobile optimization. The mobile version of their online stores should be easy to navigate, reflect the capabilities of the desktop version, and ideally, work consistently between the two.
4. Diversity in the Workforce
Diversity is increasing in the workforce like never before. Not only is it more prevalent in the media we consume, it’s also more common in the bigger business landscape. While diversity has always been around, it’s just not as recognized and valued as it is today. For example, the professional and entrepreneurial sphere is no longer restricted to men. Thanks to major societal shifts, women make up a large proportion of working-class professionals and entrepreneurial leaders.
5. Niche Market Service
Most people want to be unique, and an increasing number of consumers want highly-specific, customizable products. This is why being customer-centric is important nowadays, and high customer-centricity is the breeding ground for more niche markets.
Many companies are focusing on niche market services, changing their brand identities, taglines, and offering specialized products to their target audiences. A perfect example would be fast-food companies, that are increasingly allowing customers to order food “their way.”
Personalized services are now the name of the game. Simple things like adjusting your email marketing message with a personalized greeting, or creating a personalized product by adding a name are just the starting point.
6. Rise of the Gig Economy
It’s no surprise that the gig economy has emerged in parallel with all those other trends. The gig economy relies on front-line employees, people who are constantly moving from gig to gig and working for clients on a per-job basis. Uber for example has proven the profitability of this business model, where they don’t really employ anyone, but connect independent contractor workers with customers.
The need for gig economy platforms will continue to grow as more and more workers feel empowered to take on new projects or assignments. However, there’s a growing inclination to step away from unfair working conditions, and gig-economy services will need to start improving the way they treat contractor workers.
As an entrepreneur, you can leverage this by creating a gig strategy for your business. While many gigs require workers to bring their own equipment, this is how you can take advantage of a gig scheme, and find ways to eliminate overhead costs. This is obviously easier said than done. Managing a gig-oriented business also comes with many risks; you need to find a balance between supply and demand, exactly what the Uber algorithm does.
7. Rise of Subscription-Based Business Models
Subscription-based businesses have exploded due to the pandemic. Today, the subscription-based model in businesses is gaining traction; think about music and movie streaming, or even planned meals. As lockdowns began in 2020, more people turned to online purchases for safety. However, the added convenience is expected to fuel growth.
Moving forward, most established businesses are focused on adopting a subscription-based business model. Major benefits include consistent revenue, stronger engagement and brand loyalty, and higher customer value. However, subscription-based services require excellent customer service and online infrastructure investments to be truly effective. With a plan optimized for easy automation, you can get your costs down. Pocket a steady income while paying less? That is a good deal. However, it has to be done right.
8. Eco-Friendly & Socially Responsible Business Practices
Millennials and younger shoppers are increasingly concerned with the environment. They frequently shop with brands that promote themselves as eco-friendly or use green production practices. Entrepreneurs are keeping tabs on such business trends and are committed to reframing their companies to be more environmentally friendly.
That may require adaptations, including assessing and revising business partnerships, investing in green office initiatives, contributing a portion of profits to green initiatives and non-profits, or offering incentives to employees for participating. Don’t worry though, you don’t need to implement them all right away. However, it’s worth outlining how to embed these practices into your business within the next five years.
“Creating a strong business and building a better world are not conflicting goals - they are both essential ingredients for long-term success.”
9. Employees with Specialized Skill Sets
Technology continues to evolve at an accelerated pace; you need employees who can help you grab the opportunities without jeopardizing your business. Teaming with niche experts allows you to develop new products, offer specialized services, and get the edge over your competitors.
The better you understand where your business is headed, the easier it is to hire the right people to meet your objectives.
In short, hire quality, not quantity.
10. Younger Entrepreneurs
Today’s entrepreneurs are younger than ever. The recent recession worsened economic conditions, making it difficult for Millennials to find good-paying jobs. In an effort to build a thriving future, many seek out non-traditional career paths. Entrepreneurship for many is all about independence; many young people are motivated to become businessmen. They possess positive outlooks when it comes to business, and enjoy their roles as business owners.
11. Social Commerce a Top Priority
Social commerce has grown organically out of social media use, rising into an $89.4 billion market. As social media grew in popularity, many people started doing something quite natural; buying and selling on social platforms.
Social commerce is designed to reduce friction with customers and be present where they’re most engaged. As an entrepreneur, you’ll need to grow your following to reap the benefits of social selling, by focusing more on social media as part of your digital marketing strategy.
Based on current social media trends, other social platforms are expected to jump on board in the next few years. As more and more people are getting good at social selling, it’s expected to become increasingly sophisticated. This is supported by cutting edge digital tools and a set of best practices for each platform.
12. Disruptive Technology
For many years, disruptive technology has been a popular term, a trend in different sectors, especially when COVID-19 came around and “disrupted” the business world. With innovation, many existing businesses were disrupted to adapt to the changing world. For example, Uber was a disruption that changed the face of the transport industry. In the hotel and tourism sector, Airbnb took over the business.
Conclusion
While things like mobile optimization, working from home, and environmental concerns have been simmering for years, others have emerged due to the pandemic. As you may have noticed, many of these trends are connected. The same conditions that allowed entrepreneurs to run businesses from home are more or less the same conditions that fostered globalized businesses.
While all of the entrepreneurship trends may not directly affect you, it’s wise keeping them in mind. Having a better understanding of the overall business landscape is key to launching a successful business, making it easier for you to strategically navigate your current business through these changes.
