Predictions For The Small Businesses Of 2022
The COVID-19 pandemic has resulted in a series of changes within small businesses in general, forcing business owners to adapt to technological as well as societal shifts. Small-business owners see 2022 as a chance to recover and rebuild after nearly a year of losses caused by the coronavirus.
Though a pandemic recovery is on the horizon, the economy's speed limit has been set by a slow-growing labour pool and a lacklustre track record in terms of investment and innovation.
COVID-19 has accelerated the transition to a greener, more digital, and tech-enabled society, opening up new avenues for growth that could spark spending, investment, and innovation. Businesses and individuals are lining up to help drive this change, but their efforts are likely to be hampered by both immediate and long-standing obstacles.
Cash-free payments
Cashless payments have grown in popularity over the last year and a half, owing primarily to an increase in e-commerce sales.
People are returning to in-store shopping now that many restrictions have been lifted. Nonetheless, due to the convenience and limited interactions with store employees, consumers continue to prefer cashless payment options.
62% of Canadians reported using less cash, and 42% avoided shopping at establishments that did not accept contactless payments. Many people said they were using e-transfers, PayPal, and credit cards more. [1]
Partnerships with digital platforms to make products and services more accessible will be important post-pandemic, according to 64% of Canadians, particularly among millennials.
The Expansion of Audio Content
Only 19% of marketers use podcasts or other audio content in their marketing, according to a recent survey. Three-quarters of those who use it say it is their most effective marketing channel. [2]
Podcasts are a low-cost way for a company to establish itself as a thought leader. They can be produced on a shoestring budget, and businesses can take advantage of the existing audiences presented by guests.
Advertisers may be interested in the growth of loyal listeners as well. The proportion of monthly and weekly listeners is increasing and now outpaces overall growth. This is encouraging news for independent podcasters who are still looking for long-term monetization through advertising.
Flexible funding options
In terms of economic stability, small businesses will have a better chance of survival in 2022 because they will be able to obtain financing from within their communities. They will also be able to apply for loans through crowdfunding platforms, allowing them to obtain funding from a variety of sources other than banks.
Because they can control their offering and financing needs, SMEs prefer equity crowdfunding to traditional bank-led financing. These entrepreneurs are no longer at the mercy of a single small business banker with specific credit appetites or a venture capital firm with specific funding parameters; they are now in control, and their customers and supporters are riding shotgun alongside them.
References
[1] Are Canadians ready to go cashless after coronavirus? Meredith MacLeod,
CTVNews.ca Writer, Friday, June 5, 2020, https://www.ctvnews.ca/health/coronavirus/are-canadians-ready-to-go-cashless-after-coronavirus-1.4970838
[2] Marketing trends for 2022, https://smallbusinessbc.ca/article/marketing-trends-for-2022/