3 Small Business Trends to Monitor in 2023

After battling to stay afloat during a global pandemic for two years and then navigating a market afflicted by inflation, fears of a recession, and a still somewhat unreliable supply chain, it has been a challenging time for businesses, especially the small ones.

COVID-19 severely impacted small businesses, forcing many to close their doors permanently. However, it’s not all doom and gloom for startups and SMBs. According to Cisco and IDC’s eight-country 2020 Small Business Digital Maturity Study, small businesses are forecasted to add $2.3 trillion to their market’s overall GDP by 2024 while contributing to the country’s economic recovery. 

Still, SMBs must keep up with industry trends as the idea of work and workplace culture has drastically changed over the past few years. With 2023 underway, it’s never too early to look forward at the business trends the year could bring and what these changes might mean for the future of your small or medium-sized business. 

Digital Tech Is Here To Stay

Digitalization is no longer a choice for small businesses; it’s a necessity. Approximately 45% of SMBs are ready to start planning for a digital future, and 28% are already working toward that goal.

Thanks to digital transformation, SMB entrepreneurs have new growth opportunities and are optimistic about their future. Investments in the cloud, cybersecurity solutions, and new software and hardware also make it easier for small businesses to compete with larger companies and stay agile while the market continues to ebb and flow. However, adopting too much tech without preparing for its impact can do more damage to your business than good.

Since small business owners manage almost every aspect of their business, an influx of traffic can be overwhelming. Over 96% of SMBs are unprepared to handle unexpected success and too many new clients. Fortunately, companies like ScaleTime can make it easier for SMBs to scale and optimize their business systems. By tracking performance and identifying skills and gaps within the business, ScaleTime can develop and implement tools to save time, manage growth, and reduce owners’ workloads so they can focus on one thing at a time.

The Future of the Workplace Has A New Look

In addition to digitalization, healthier work environments are necessary for employee retention. As younger generations enter the workforce, more companies are integrating flexible work arrangements into their culture due to an overwhelming demand from workers—91% of people are happier with remote work options and flexible hours. The workplace is adjusting to accommodate their needs now that employee satisfaction is on companies’ radars.

What does that look like?

The rise of remote and hybrid workspaces gives employees more options to choose the location best suited to their work habits rather than being forced to stay in an office. Business owners can reduce spending on physical office space as employees collaborate more efficiently within smaller teams across different locations and through remote collaboration platforms.

Also, since the pandemic shed light on the importance of mental and physical health, there is a growing emphasis on overall wellness, preventing exhaustion and burnout, and ensuring positive workplace experiences. Happy workers lead to more productive results, and companies that truly understand this can advance faster.

For SMB owners and applicants needing a new company or executive talent, ExecutivePlacements and other job boards can connect recruiters and prospects to quickly find the best fit for each. 

Payment Convenience

The traditional payment process leaves little predictability over when payments arrive or the amount received after various fees are deducted. Small businesses will embrace faster and more innovative payment options to keep customers satisfied and loyal while also avoiding traditional credit card processing fees.

For example, Wagmo, a pet insurance company, uses account-to-account payments to reimburse policyholders on its platform. Pet parents can get a quote from the website for their animal and, once approved, submit a claim and receive reimbursement via ACH directly to their bank account.

Even more, ACH and RTP transfers provide better cash management, making it easier to boost revenue, increase business transparency, improve payments reconciliation, and reduce unauthorized payments. Dwolla, a modern payment technology platform, offers business owners more control over their payment processes so both vendors and employees can get paid faster. Even gig workers, contractors, and workers receiving tips can get daily payouts sent straight to their bank accounts without losing any revenue to processing fees. Digital financial tech is reshaping economies, allowing SMBs to become more agile.

Even as economists and politicians are telling us to buckle up for another rough year, small businesses around the world can adapt to the current climate and not only survive but see profitable growth for their companies. Despite the challenges—and opportunities—this year will bring your business, staying up to date with current trends and technology will ensure you're ready to face and overcome difficulties and take advantage of new opportunities as soon as they arise.

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This post was authored by an external contributor and does not represent Benzinga's opinions and has not been edited for content. This content contains sponsored advertising content and is for informational purposes only and not intended to be investing advice.