As technology advances, so does the world of entrepreneurship. Keeping up with emerging trends is essential for any business owner looking to stay ahead of the game. Below, we’ll explore the top trends shaping entrepreneurship to give you a better picture of what to expect in 2023.
AI and Automation
Artificial intelligence (AI) and automation are already transforming customer service, data analysis, marketing, and more. As AI evolves, expect it to become increasingly accessible to small businesses that can leverage its capabilities to streamline their operations and free up resources. AI will likely become more prevalent in day-to-day business activities than ever before.
The gig economy is booming and shows no signs of slowing down anytime soon. Micro-entrepreneurship is a very small business with minimal investment and fewer than ten employees.
Micro-entrepreneurship will continue to provide a way for entrepreneurs to enter a market and succeed. Already a path to economic freedom in many countries, it’s also ideal for immigrant entrepreneurs who want to start a business but find barriers or access to financing a challenge.
Also known as “the sharing economy,” collaborative consumption occurs when goods or services are shared between individuals rather than purchased through traditional retail outlets or service providers. This trend is gaining momentum due to its environmental sustainability benefits and cost savings potential, making it attractive for consumers and businesses alike.
Companies like Uber and WeWork are great examples of collaborative consumption. 2023 could see wider adoption of this model as entrepreneurs look to reduce costs while providing quality products and services at competitive prices.
Social Impact Investing
Investors are increasingly looking beyond financial returns and considering how their investments can make a positive social impact. This trend will grow in the coming years as investors focus on sustainability goals and ethical investing practices. This will provide opportunities for entrepreneurs who want access to capital but also want their companies’ efforts aligned with larger societal goals, such as reducing poverty or tackling climate change issues head-on.
As Internet of Things (IoT) technology has advanced, it has left the exclusive sphere of large companies and is more accessible to small businesses. SaaS and other IoT-driven options provide entrepreneurs with the tools to use IoT in their businesses.
IoT helps level the playing field between small and large companies. It empowers entrepreneurs to quickly introduce tools to improve efficiency in production, design, infrastructure management, and more.
Low or No Code Applications
Software development was previously a realm of coders and those with extensive programming knowledge. New advancements in programming have made low or no code available to entrepreneurs outside those disciplines. Using natural language programming and drag-and-drop functionality, entrepreneurs can design creative apps or build a business around an app.
Climate Tech Startups
The last two years have seen tremendous investment in climate tech startups. In 2022, these companies accounted for over a quarter of all VC investments. Companies focused on rapid decarbonization, alternative fuels, and innovative energy solutions like microgrids will continue to grow.
Traditionally, the customization of products was expensive. The speed and automation that delivered high-volume goods at low costs low prohibited small lots and lots of one. Technological advances like smart manufacturing and IIoT have changed this and ushered in mass customization at a cost on par with high-volume production. This change has paved the way for entrepreneurs to thrive in niche markets with broad, sometimes global reach.
Small businesses can cater food, fashion, and home décor to niche tastes not possible before. These niche markets may also be socially driven, like those catering to communities such as LGBTQ+ and others.
Taking Advantage of the Trends
Whether you’re an up-and-coming entrepreneur or have been in business for a while, take advantage of these trends when they apply to your business.
If you need some support, the Henry Bernick Entrepreneurship Centre (HBEC) at Georgian College is here to help. We offer training and resources for entrepreneurship, innovation, and research. We can help you network and find access to funding to bring your new idea to light.
Contact us to learn more.