By Hampton Roads Small Business Development Center (HRSBDC) By Mike Austin
A newly released report by Accenture highlighted one of the impacts of COVID on budding entrepreneurs. Their research found the following:
- 10% of professionals have some type of small business on the side (a/k/a “side hustle”)
- In 2021, 5.4 million new businesses were created (a record number), topping the 4.4 million created in the prior year
- 80% of the “side hustles” created by professionals are planned to eventually be their main source of income
- These “next-generation” small businesses are 2X more digitally savvy than other small businesses
- 70% of these founders intend for their businesses to remain small
- These new entrepreneurs have a different set of goals and needs than their predecessors
- The widespread adoption of remote work contributed to the creation of these new businesses
- In 2020, 64% of the owners said they couldn’t continue their businesses if they had to work in the office full-time
- In 2021, 57% of the owners felt the same way
- For employers, they should attempt to give employees the flexibility to pursue their passions to help with employee retention
- Also, for businesses that wish to cater to these new ventures, it is recommended that they focus on the following:
- If possible, aim to be a long-term partner with these new entities
- Segment small-business consumers based on their type and need
- Customize pricing models, especially since most of their ventures are self-funded
- Focus on social media, search engines, and other means to meet the small businesses where they are active
- About 74% of these new entrepreneurs are using their own funds
- 36% have also used personal networks for funding
- 26% have accessed small-business loans
- The new wave of entrepreneurs is finding lower barriers to entry than in the past
