Written by Tyler Gallagher, CEO and Founder property assetsan international alternative asset firm with offices in Beverly Hills, Toronto, London and Dubai.
The entrepreneurship landscape is forever in flux. What was true yesterday is not guaranteed tomorrow, and aspiring entrepreneurs must keep pace with these sweeping changes if they are to remain competitive in the marketplace.
As a lifelong entrepreneur, I owe much of my success to staying relevant and always looking for what lies around the corner. If you get stuck in the past, your business will suffer.
That’s why, with 2021 coming to a close, I decided to take a closer look at some recent trends to see what American entrepreneurs have in store for the next year. Read on for my opinion on the latest entrepreneurial trends in America, as well as market expectations for American entrepreneurs.
Companies are getting smaller
The number of small businesses without any employees is increasing in America. In 2020, the number of individual companies increased while the number of companies with employees decreased by 2.4%. It is likely that we will see this trend continue in the future as more companies seek the services of independent contractors rather than hired employees.
Best countries for entrepreneurship
With the decline of traditional retail, so has the importance of where you establish your business. Since many of us sell products or services digitally, there is no longer a need for many business owners to establish themselves in a major metropolitan area. It also means that entrepreneurs are free to reside wherever they like and integrate in countries that may have been inaccessible in years past.
According to a CNBC report, the best cases for setting up a company are as follows:
• North Carolina
These states were selected based on several key criteria, including access to capital, available workforce, public infrastructure, and the costs of doing business. I strongly agree with this list, as I have seen many of my colleagues run successful businesses in these areas. Since the cost of living tends to be lower in these states compared to large metro areas on the coasts, setting up a business here can result in significant cost savings.
Entrepreneurial optimism is (surprisingly) high.
There is a growing sense of optimism among the American public when it comes to opening a business today. The most recent data from the National Federation of Independent Business (NFIB) shows the Small Business Optimism Index (SMOI) of 99.7 as of July 2021, higher than it was in 2016.
However, SMOI has seen a slight decrease from last year due to the inability of many business owners to fill positions within their company. Labor shortage constraints, supply chain issues, and inflation remain important points of concern for many entrepreneurs, and frankly, I don’t see this issue finding a cure in the next year.
Fintech banking and decentralization are on the rise
In my view, alternative finance, fintech, and decentralized banking are set to see serious growth in 2022. Between 2008 and 2020, a staggering 13,000 bank branches permanently closed their doors, with the vast majority located in rural areas.
As a result, more rural Americans are unbanked today than in years past. While this is a systemic problem, it also presents an opportunity for entrepreneurs. Fintech solutions that provide critical banking services to rural Americans and unbanked Americans are set to be a huge growth sector for the foreseeable future.
Less Hierarchy, More Agility
I’ve seen more and more companies adjust their organizational structure to be less hierarchical and less strict. Strict corporate leadership structures tend not to favor flexibility or quick response times. Instead, keeping roles ‘open’ to new responsibilities and being able to delegate freely makes each team member available to focus on other projects if needed.
In 2022, I expect we’ll see more companies follow suit by relaxing traditional roles and allowing employees to take on more responsibility and leadership.
Flexible co-working is on the rise
There is no doubt that the Work From Home (WFH) model has been proven to be successful and sustainable. However, the move to WFH has resulted in significant vacancies in co-working spaces that were once too expensive for business owners. I expect to see more and more entrepreneurs taking advantage of co-working spaces, discount offices and inviting employees to join on an optional or flexible basis.
Entrepreneurship in 2022: A Changing Landscape
There is no doubt that the US economy is changing. For many of us, the way we do business is fundamentally different than it was just a few years ago. However, by staying abreast of the latest trends and market data, you can help maintain your competitive edge and level of direction when it comes to navigating our changing economic terrain.