Statistics show that small businesses largely dominate the economy and are the major contributors to employment. Small business owners have to adapt their businesses to ensure that they are well poised for long-term success. The year 2019 is expected to elicit certain trends as far as small business ownership and management is concerned.
Data privacy
Small businesses are increasingly concerned about the rising trend of cyber insecurity in businesses. In response to this menace, small businesses are expected to improve their data privacy mechanisms, including implementing top-notch cybersecurity measures. This is even as governments across the globe emphasize on the need to observe the privacy of customers’ data held by businesses.
Preference for renting
Small businesses have the option of renting or buying their assets. Given the volatility of the market, small business owners are expected to increasingly prefer renting their assets rather than acquiring them. Renting is expected to become more preferred as it substantially reduces the operational costs while boosting a business’s ability to adapt to market changes.
Cost-cutting measures
Even as the global economy continues to experience certain shakeups, small businesses are expected to be hit hard. In response, small business managers will be expected to put in place cost-cutting measures. Among the highly likely measures to be implemented include the reduction of the number of employees and cutting down on operational and production costs, among other common business cost-cutting measures.
Shifts in financing options
As more aspiring entrepreneurs target establishing their own small businesses, there is expected to be a paradigm shift in the preference for financing options. Upcoming entrepreneurs would prefer financing their business startups from their cash savings as compared to taking any other sources of business startup capital such as loans. Given the rising interest rates, business owners are expected to reduce as much as possible the risks incurred during business establishment.
Changing workplace arrangements
Small businesses which employ workers are expected to increasingly change the way they engage their employees. Particular focus will be made on ensuring that employees are satisfied with flexible work arrangements. For instance, businesses are expected to give workers the flexibility to work from home under flexible working routines as an incentive of encouraging their satisfaction and productivity.