Small businesses will fuel the economic engine of the future
Personal computers and the Internet laid the groundwork for new businesses and disruptive business models in the last decade of the 20th century. The growing digital infrastructure reduced the costs of starting and running a small business and opened new markets and industries to small businesses. There will be a particularly significant rise of one person businesses with no employees driven by shifts in larger company employment practices and changes in technology.
The most successful entrepreneurs are those who don’t follow the herd but anticipate the needs of the market earlier than the competition., writes Joel Stonington for Bloomberg as he explores the small businesses of future.
His list includes :
- 3D Printing Shop: The return of small and localised manufacturing through 3D printing shops will enable customers to get customised products delivered in their neighbourhoods.
- Body Part Maker: Using stem cells and polymers, customised body part makers and prosthetics will emerge in every city
- Car Charging Station: They are likely to replace traditional fuel stations for charging electric vehicles
- DNA Design Firm: High tech research in DNA and genetics will be opened to small but dedicated businesses who will work towards end of diseases.
- Holographic Theater: These will emerge as redefined entertainment, replacing 3D cinema of today.
- Jet-pack Dealership: They will be the new car dealerships . Initial use will be recreational, before advances in technology will make it a means of commuting.
- Meat Grower: Meat grown in labs and packed with right nutrients will soon be a reality and a booming business.
- Nanosatellite: These will be primarily for business applications and research by universities.
- Privacy Protection Firm : For the digital natives, data protection and privacy management will be supreme and will lead to huge spurt of privacy protection services.
- Robot Mechanic: This one is expected to do particularly well in a world filled with more robots than humans.
- Stem Cell Pharmacy and nanomedics: The advances in medical science and nanotechnology will spurt a growth of stem cell pharmacies and nanomedics.
- Vertical Farming: The drive for increased productivity and conservation of land and water will lead to more vertical farms coming up. Besides, demand for locally grown food will lead to vertical farms coming up in cities as well.
- Asteroid Mining : As we are running out of resources on earth , harnessing outer space will become a viable option with advances in technology.
- Greenhouse gas auditors: Environment protection and sustainability will be significant concerns in future . Environmental protection policies will ensure that companies audit their greenhouse emissions as thoroughly as their balance sheets.
- Lunar tour operator and space hotel: Space tourism may be initially for the very rich, however with time, it is expected to get mainstream.
Our perspective
Small businesses have always been dwarfed by larger corporations. However, their contribution to strengthen local economies can’t be overstated. They may not generate as much money as large corporations, but they remain a critical component of economic growth and especially new job creation.
In future, small businesses are expected to lead the economic growth as more and more people will be a part of this sector. However, there will be a few remarkable differences than before.
Small businesses have been traditionally late adopters of technology. This is set to change as technology will arm small businesses with a wide varieties of tools, services and capabilities. The growing digital infrastructure will further reduce the costs of starting and running small businesses, lower competitive barriers, open new markets and industries to small businesses and lead to the creation of new and disruptive, business models. Broadband and wireless networks will become ubiquitous and increasingly advanced, and cheaper computing power will greatly improve the collection, analysis, and sharing of data and information.
There will also be rise in one person companies and the average number of employees in small companies will also fall significantly. Technology will make it possible to do more work efficiently with smaller onsite workforce.
This digital infrastructure will allow greater flexibility around when, where, and how work is done, allowing small business managers to run their businesses on their time and on their own terms. These businesses will create new organisational structures with a wide range of business objectives and provide greater opportunities for work-life balance.
Another major diversion from the past will be the use of social media and adoption of online tools to connect and build relationship by small businesses. The ‘connected world’ nature of the Internet will let small businesses expand their relationships with partners, suppliers, and customers beyond their local neighbourhood, almost as well as big businesses.
There will also be revival of artisan economy but this time, the brain will blend with brawn as software and technology will replace hard iron and hard labour. Most will be knowledge artisans, relying on human capital to solve complex problems and develop new ideas, products, services, and business models. These artisans will attract and retain highly skilled and creative talent by offering freedom and flexibility and, in many cases, highly competitive compensation.
Gazing through the crystal ball
- Small businesses’ DNA will not be very different from those of big businesses because both will be using scalable digital platforms for production, delivery, customer relationship, etc. Don’t be shy of a career in a small business, the domain of business is the more important decision point.
- Big businesses will in fact be networks of smaller businesses. In a way, small business will drive the big businesses and in that process join or create new network of other small businesses to end up being the nerve centre of a big business. To learn skills and domain, joining carefully chosen smaller businesses will be a better idea.
- The number of small business opportunities is limited only by imagination. Join the new ‘gold rush’.
