While the year 2020 had a negative impact on many small businesses across the globe, 2021 is set to be a great year for small business, whether they are already established or are starting out. As the world continues to recover from the global pandemic, small business are blooming and becoming increasingly popular with the public. Keep reading to find out why.

Starting a Business Online Is Easier Than Ever

The covid-19 pandemic saw many businesses have to adapt and move their services online in order to stay afloat. Due to this, many tech companies and e-commerce platforms have adapted, making it easier for everyday business owners to access a larger customer base and promote their products and services. Even before the pandemic, consumers were beginning to look online more often. Statistics show that e-commerce use increased by around 40% in the wake of the pandemic, with consumers looking for unique products and services during lockdown.

Many businesses with physical premises have also added to their repertoire by adding an online platform to their business and have seen both their customer base and their profits increase. Therefore, if you are a small business, it is vital that you include an online presence into your business plan this year – whether this is an online shop, an active social media page or delivered services via Zoom video calls, there is always a way to promote your business, its products and its message.

Larger Available Workforce

One unfortunate repercussion of the pandemic and lockdowns of 2020 was the job losses that occurred around the world. Millions of people were made redundant or left with fewer working hours. For small business employers, this has created a huge pool of potential workers who will be looking for a new challenge. These workers will have a lot of experience and expertise in a variety of areas that could benefit a business in 2021.

Additionally, if you are one of the millions that lost their jobs, you may want to consider starting your own small business – there is no better time as the world is opening back up and looking forward to pastures new.

Less Competition

Another sad reality of the past year is that many businesses have closed their doors for the final time or are rebranding or changing their business model due to the impact of the pandemic. Many of the companies that have suffered are national or global companies that have had to shut down physical store across the country. This does leave a potential gap in the market for small businesses to fill and start-ups to flourish. Some of the world’s biggest companies, such as Air Bnb and Uber, were founded during a recession during a period where many large companies filed for bankruptcy – there is a successful pattern of small start-up businesses thriving due to their new ideas and low overheads.

Increase in Consumers Shopping Local and Supporting Small Businesses

Due to the significant negative impact of the pandemic on small businesses, there has been an increased push from the government and the public to encourage supporting local or small businesses. Over the past year, for example, almost two-thirds of shoppers in the UK opted to purchase items closer to home. Barclaycard found that shoppers were swapping their supermarket purchases for specialist or local stores such as butchers and bakeries. There was, in fact, a 63% rise in spending at small local businesses. Even small online retailers have seen a boost in their engagement and profits over the past few years, and this trend is set to continue.

Additionally, small local businesses have seen their profits boost from the fact that many people are now working from home and choosing to shop in their local community or invest more in home and lifestyle products. Even as the world is beginning to open up more, a Barclaycard study found that around nine out of ten people who moved to shopping locally said that they would continue to do so.

Conclusion

Being the owner of a small business can be a daunting experience, but 2021 is set to be a great year for expanding and developing your company. While the pandemic has led to many disadvantages, it has increased consumers appetites for local or small businesses, as well as created a larger potential workforce and online presence.

One important aspect to consider when starting up or developing your small business is security. The reason for this is that small businesses are often targeted by theft, vandalism or fraud, as well as online cyber-crime. Ensuring that you have the correct security in place will not only give you peace of mind but can save you money in the long run as you will not need to repair damage or replace stolen goods.