5 Trends Fueling Big Growth for Small Business

5 trends fueling big growth for small business

5 Trends Fueling Big Growth for Small Business

Propelled by access to new technology, a changing workforce and easier opportunities to reach a larger audience, small business growth is expected to skyrocket in the coming years, new research finds.

 

According to a study from Intuit and Emergent Research, the number of small businesses are projected to increase to 42 million by 2026, up from this year’s 30 million. The 3.3 percent annual growth rate over the next decade is significantly higher than the 2 percent average growth between 2004 and 2014, the most recent data available.

 

While the number of small businesses will grow over the next decade, their size is actually getting smaller. The research found that the average size of small businesses dropped by 20 percent between 2001 and 2014. Specifically, in 2001, the average small business started with 6.5 employees. In 2014, the number shrank to just four employees. [See Related Story: How to Start a Business: A Step-by-Step Guide]

 

“The next few years will see an acceleration in the number of small and micro businesses, thanks in large part to new technologies that reduce the costs and risks of operating a small business and open up access to customers around the world,” Steve King, a partner at Emergent Research, said in a statement. “While running a business is always going to be tough work, economic and technological changes are making it easier and cheaper to start and operate a successful small business.”

The study’s authors highlight five key reasons that will not only fuel the growth of small businesses, but will allow them to compete with big businesses like never before.