According to the U.S. Small Business Administration, there are 30.2 million small businesses in the United States with 58.9 million small business employees. A small business is one with fewer than 500 employees. It may be surprising to learn that 99% of all businesses in the U.S are considered a small business.
So why start a small business? The future of small businesses has become an increasingly viable option for many individuals who possess a skill or talent and have access to today’s technology.
With the most basic resources for launching a small business available online, such as the ability to build your own website and e-commerce platforms, individuals are able to brand and market themselves as entrepreneurs in a relatively quick manner.
Trends in Diversity and Age
In the past few years, trends have noticeably shifted to include more women and minority groups.
A 2018 survey from the U.S. Small Business Administration reports that 8 million small businesses are owned by minority ethnic groups. The Center for Generational Kinetics reports that 30% of millennials have small business and an estimated 49% plan to start one within the next three years. Surprisingly enough, however, statistics from the Kauffman Foundation have shown that many baby boomers are dedicating themselves to new businesses instead of pursuing full-time retirement.
Trends in Employee Expectations
According to research conducted by Business News Daily, the state of small businesses in 2019 will see trends in a few different places.
It will become more and more common to see small businesses prioritizing employee health and wellness. For many small businesses, the flexibility to work remotely is a frequent option. With the rise of technologies such as Slack, Asana, Basecamp, and others that allow constant communication and organization across a team, managing a remote team becomes a relatively simple task—not to mention, studies have shown that remote workers tend to be more productive than employees in the office.
In addition, many businesses are placing a higher emphasis on employee happiness and retention rates. Keeping employees engaged and content with their place of employment is essential for the future of business. Wellness and fitness initiatives may also play a significant role in attracting and retaining employees.
The Role of the Labor Market
The national unemployment rate remains at historic lows, and many economists and analysts have predicted that the labor market will most likely remain tight in 2019 across several industries.
For small businesses, this means that many companies will compete with other employers for the top talent. As this happens, more and more employment perks will continue to be offered in an effort to meet the demands of employees.
As the future for small businesses in the United States continues to evolve, new innovations will likely create new trends.
