It should come as no surprise that the global economy is set to contract by the end of 2020, with the coronavirus having impacted significantly on both developed and emerging economies alike.
In total, the world’s economy is projected to shrink by at least 4.9% this year, with this having been revised from a forecasted contraction of 3% in April. The US economy is expected to be one of the worst hit with a 5.9% decline, although the UK and a host of European nations have been similarly impacted.
However, some firms and marketplaces have fared relatively well amidst the chaos, and we’ll look at some examples while asking why they should offer inspiration to aspiring entrepreneurs.
Let’s start with the obvious; as the impact of social distancing measures and lockdowns has compelled more people to shop online throughout 2020.
Of course, this has become the best small business and accelerated a trend that was already prevalent prior to the outbreak of Covid-19, with estimates suggesting that the pandemic will add a total of £5.3 billion to UK ecommerce during 2020.
The market leader for growth in this sector is Amazon, with this company remaining a trail-blazer that continues to influence the future direction of the industry. Interestingly, Amazon also offers support and increased exposure for affiliates and start-up ecommerce ventures, meaning that a raft of different companies can profit significantly in 2020.
From the perspective of new traders and aspiring entrepreneurs, ecommerce also represents an accessible and low-overhead market that can drive higher short-term profits. This is an important consideration in the near-term, especially given the socio-economic impact of Covid-19 on consumers and households.
The Development of Workplace Technology Solutions
While Zoom stock may have endured something of a correction of late, this video conferencing tool experienced huge, triple-digit growth during the first three quarters of 2020 .
This came as a growing number of people began to work from home in the name of social distancing, with 46.6% of the UK workforce operating remotely regularly throughout April. Of this number, an estimated 86% did so as a result of Covid-19, creating a sudden spike in the demand for workplace tech.
While this demand is beginning to fall, however, companies are increasingly inclined to offer remote and flexible working directives to their employees, and in this respect, companies that develop accessible tech solutions will have an opportunity to enjoy considerable growth in the near and medium-term.
Of course, this is a specialist and relatively high-cost market in which to enter, but entrepreneurs with technology expertise could well target it with some success as 2021 gets underway.
Finance and Market Trading
You may have noticed that accountancy and similar financial services have come to represent increasingly attractive markets in recent times, thanks largely to the fact that it’s relatively easy to market these as a start-up venture or freelancer.
On a similar note, we’ve also seen an uptick in financial market trading and participation in the digital age, as technological advancement and innovation have broken down many of the historical barriers that once surrounded the marketplace.
Of course, you may need some academic accreditations and advanced learning before entering into these markets, especially if you’re going to offer widespread financial services. In the case of accountancy, for example, you’ll need a relevant higher education degree and a license from the Financial Conduct Authority (FCA) before providing advice and services.
When it comes to financial market trading, you’ll have to build a solid foundation of knowledge, before using online tools such as demo accounts to gain risk-free and practical experience of your chosen marketplace.
What are the most successful small businesses to start?
Most successful small businesses:-
- The Development of Workplace Technology Solutions
- Finance and Market Trading