State of Small Businesses Online in 2021 & The Road Ahead
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Every year on 27th November, the world unites to appreciate the community of small businesses. A small business is defined as a private owner, corporation, partnership, or sole proprietorship with few employees and generates less revenue than medium-and-large businesses. But the impact of small businesses on the economy is worth appreciating! Here are some unheard things about the small business community that will astound you as you go through the blog. How are young men and women entrepreneurs taking risks to pursue their passion? How does the pandemic affect the small business community? Here is everything to it!
Small Business Day, A Sneak Peak –
You sure remember the struggling recession phase of the US. It was that time when American Express coined this term. Small Business Saturday is a way to spread awareness about local businesses and encourage shoppers to shop from them. As a result, it will enable citizens to shop locally with them and generate revenues that would have otherwise gone into the pockets of global brands.
Even before the internet proved to be a great push for this community, this day made shoppers realize the impact of shopping with this community. The proceeding section reveals the impact of small businesses on the economy.
Impact of Small Businesses on the Economy –
The small business community in the US is mushrooming like anything. According to the Small Business Administration (SBA), small businesses in the US accounts for 63% of the net new private-sector job. The community created immense job opportunities in minuscule geographical areas, making the market more competitive. The small business community in the US is diverse not only in size but also in industry representation –
And then came the internet. As a result, you can set up your online store and connect with shoppers residing outside your geographical business area. American Express might be the birth giver to this fantastic day, but the internet took Small Business Saturday and the community to a whole new level.
Small businesses are among the top employers in America. More than 56 million Americans work at companies with less than 500 employee strengths. In contrast, more than 20 million Americans are employed at companies with fewer than 20 working people.
Isn’t it worth it to say that small businesses have helped sustain the US economy? But certain uncalled situations might spoil things in ways that no one imagined. One such case goes as follows.
Pandemic & The State of Small Businesses Online –
Pandemic’s impact on the global economy is visible. But when routines of all kinds came to a halt, the internet was a savior! While reputable brick-and-mortar stores went non-operational and bankrupt. Businesses started adopting online channels of trade.
Are you worried about how the future will be like? Well, let’s predict it together! According to a survey, 55% of the small businesses in the US felt the tremors of the pandemic where food services suffered the most, followed by non-food manufacturing, retail and wholesale.
21% of small business owners confessed that they risked shutting down permanently within three months. They were youth-led firms that kick-started just before the pandemic. To improve the state of small businesses, entrepreneurs strongly believe that the community needs help from the local and regional governments as well.
4 Phases of Recovery from the Pandemic –
Experts believe that the community of small businesses travels through 4 phases – shutdown, supply chain disruptions, revival, and recovery stage.
- Tremor of Shutdown – Shutting down markets and the economy adversely affected. Sectors like travel, wholesale, retail, hospitality, and entertainment felt the worst blow of the pandemic.
- Disruptions – Worldwide lockdowns, especially in G3 nations, significantly impacted productions, imports, and exports.
- Demand Revival – As lockdown restrictions lightened, households resumed spending on fashion, beauty, and other non-essential items. However, they started to consider eCommerce for health, fitness, home improvement, and grocery categories.
- Recovery – At present, the small business community is at a recovery phase. But this recovery depends on a country’s health, depth, and timings of demand and suppression.
The pandemic is re-shaping economies. The new normal makes the recovery challenging since it’s a whole new concept to everyone.
Shopify & Its Ways to Elevate the State of Small Businesses Online –
Looking at the present scenario, the community of small businesses is reviving and recovering. As a result, they need a helping hand from the government and the local community.
If you’re managing a small business, then there is one thing that you can do to get a valuable push and pull. It is by presenting your business online. Going online is one of the many facets of this new normal.
SaaS-based eCommerce platform Shopify took rounds of initiatives to improve the state of small businesses online. Do you run a small business? Are you planning to take it online? Wait no more! You can talk to our Shopify experts and build your online store with Shopify.
State of Women & Men-Led Small Businesses Online –
Here comes an intriguing question – who runs a small business? Well, they are passionate people who are crazy enough to build something from scratch. Who is willing to travel the road less taken. The bumpy road of entrepreneurship is synonymous with the community of small businesses.
State of Women-Led Small Businesses –
According to the US Census Bureau, in 2012, some 36% of the US businesses were owned by women. However, women-owned businesses are small as compared to men-owned businesses.
The impact of coronavirus on small businesses was felt more in women-led SMBs. A survey found that 27% of women-led SMBs were closed in the global sample. In the US, the same number was 25.
But despite this shocking number, women-led SMBs were less likely to report a drop in employment due to the pandemic. While the above facts might be problematic, here is the flipside. These facts also portray that more women are blazing the entrepreneurial spirit more than ever!
State of Men-Led Small Businesses –
Presently, both genders strongly agree that the internet is the best way to minimize the risk of shutting down and maximize their visibility to their target audience.
During the difficult times, 13% of the men-led small business community decided to shut down (20% in the case of women-led SMBs). If we talk about the global average, then 20% of women-led SMBs reported being closed compared to 16% of men-led SMBs.
When it comes to rehiring workers during the new normal, 20% of the men-led SMBs are willing to hire back workers compared to 18% of women-led SMBs.
You sure would agree that to grow and prosper on the internet, and one should wisely use the myriad of online tools and resources available. In this case, men-led SMBs tend to use more digital tools and assets than women-led SMBs.
State of Small Businesses Online – The Road Ahead!
Here is the key takeaway – The pandemic is temporary while growing, sustaining & rebuilding is not. Yes, things might take some time to get back to normal, but it is the job of budding entrepreneurs to be future-ready & customer-ready.
If you are a budding entrepreneur and a part of the small business community, here is how can build a safe and sound playground for your small business –
It is the Right Time to Go Online!
There is a reason why brands are striving hard to go online. If anything has kept humans connected during the lockdowns, it was the internet.
From conference calls, informal meets to daily shopping essentials – everything was being done with the help of the internet. While the option of shopping online was already present, it is no longer an option. It is instead a wise choice.
Going online is easy as well as cumbersome. But with Shopify & Shopify Experts, you not only will be moving your business online, but you will also grasp a handful of learnings that you would have otherwise missed.
Yes, other eCommerce platforms fulfill the same purpose. But Shopify is and will be the epitome for online merchants!
CedCommerce Has & Will Always Support the Small Business Community!
For more than a decade, CedCommerce has been weaving solutions for the community of small businesses to promote and facilitate selling online with a holistic approach. Put, CedCommerce is the bridge between your business and global shoppers.
As Shopify experts, CedCommerce will help you build, scale-up, and customize your Shopify store. With a multichannel approach synced with other promotional campaigns, your business will be introduced to the global marketplaces.
We at CedCommerce have experienced small things doing wonders, and we want to continue sharing our knowledge with the community of small businesses. With a hope to fuel their growth with data, a strong flow, and impeccable support.
Summing Up –
Starting a small business is like a roller coaster ride. Full of ups and downs, surprises, and sudden changes. But one thing comes with certainty. Nothing is pre-defined. This action-packed life of the small business community has gained respect from across the globe.
The global state of small businesses online is still in its recovery phase. But the future of online shopping and eCommerce seems bright. As a result, small businesses fuel this never-ending growth and excitement of shoppers to shop online.