Small Business Boom Is on the Horizon

Woman in bakery: MaxFilings Small Business News Blog

As technology advances, businesses are able to change the way they operate and greatly expand their reach among potential clients. This growth isn’t just for big businesses – experts suggest that small businesses could see tremendous growth in the coming years due to advances in technology.

By 2026, we could see the number of small businesses rise by 12 million (from 30 to 42 million), according to a partnership study from Intuit and Emergent Research. Additionally, this growth is thanks to a projected increase in the average growth rate (AGR).

In the next decade, AGR is projected to grow by 3.3 percent – much higher than the 2 percent growth we saw between 2004 and 2014.

This growth, however, does not suggest an employment explosion. Counterintuitively, employment amongst small businesses is actually getting smaller. Over the last decade, the size of small businesses has decreased by 20 percent. From 2001 to 2014, average employment dropped from 6.5 to 4 employees. The study also suggests that access to advanced technology can foster competition between big and small businesses.

Here are three other reasons why the number of small businesses is poised to grow in the next decade:

  1. Online storefronts allow for the sale of niche products on a global scale.
  2. Deep insight includes access to a higher level of data as well as machine learning – both of which increase the complexity of analysis the business can perform.
  3. Advertising is now cheaper than ever before. Businesses can now reach local and worldwide customers cheaper and easier.

By the time we reach the end of the next decade, it’s very possible that the way we view small business could be very different. Ten years is not a long time in the grand scheme of things, so it’s important to stay up-to-date on what’s new in the business world. Luckily, MaxFilings is here to help.

Stay tuned to our blog!

Related Post