Four small business trends to watch out for in 2024
The challenges of 2023 — from rising interest rates and soaring inflation to changing consumer habits — have forced many start-up founders to rethink business models and adapt operations.
So what will be the key drivers for entrepreneurs in the new year?
Ramp up sales
Emma Jones, founder of small business support platform, says she has seen a lot of appetite from small businesses keen to ramp up their sales.
But founders – and their businesses – have to mature rapidly when they win big contracts, says Jones, whose organisation represents 120,000 entrepreneurs.
“When it comes to getting ready and being fit to supply, this is something that kind of needs a whole piece of education in its own right,” she adds.
With the new year ahead, Jones believes her team will be asking themselves: “How do we get British businesses fit to supply bigger customers?”
Jones thinks 2024 will be a year for growing sales in the small business world – and she is optimistic about exports kicking off in the new year as well.
The majority of small businesses have chosen to put international trade on hold since Brexit, Jones says, and it “just hasn’t picked up again”. But that could change.
Purpose and sustainability
Andy Fishburn, managing director of Virgin Startup, a not-for-profit created by Sir Richard Branson to advise and find funding for entrepreneurs, says: “An increasing number of new businesses are driven by a desire to have a positive impact in the world and are putting purpose at the heart of their business plans.”
With some 92 per cent of founders saying they are working towards more sustainable operations, Fishburn expects this trend to continue into the new year.
In fact, more than half – 58 per cent – of small business owners said customers also share the same values.
Focus on mental health
Business founders have rated their mental health a 5 out of 10 this year, Fishburn says, which is a worrying prospect for many ambitious-minded entrepreneurs looking to kickstart what can often be a lonely journey.
“Those early years of starting a business can be lonely, which is why networking events, workshops and business accelerator programmes have an important part to play,” Fishburn says.
Networking is not just for building skills and scale, he says, but it’s meant to also build a network of “like minded people” for advice, encouragement, and support.
Using AI
Michelle Ovens, founder of Small Business Britain, a campaigning and support group, says the use of artificial intelligence will be a “massive opportunity” for small businesses in the new year.
“A remarkable number are starting to think about AI, but most I would say are yet to realise the value to the business,” Ovens adds.
“This will explode in the next year with ‘freemium’ services giving even the tiniest of businesses access to phenomenal tools.”
The opportunities are endless, Ovens believes, whether it be for an increase in productivity or in order to eliminate mental blocks.
“I don’t think there is a fear of it hitting jobs, but more an excitement at the new opportunities it can bring. Small businesses remain about people, but the people can do a lot more in 2024,” she added.