Small businesses are the lifeblood of the American economy. And while there are all kinds of small businesses, there are some common themes among those that are succeeding in the modern age.
Here are 3 hot small business trends:
1. Video marketing is spreading quickly
Video creator Animoto recently published an infographic regarding entrepreneurial use of video marketing and more than half of small business owners cited the use of video marketing in the 12 months leading up to the survey. More than three-quarters of those surveyed reported a noticeable impact to their businesses, and 60 percent aim to put more spend into video marketing in the next year.
In terms of platforms, Facebook is at the top of the priority list, with 44 percent of owners and marketers intending to invest in promoting their videos through this platform, while YouTube is next in line with under 20 percent of small businesses looking to spend their budget on this platform.
2. Greater optimism, more hiring plans
The National Federation of Independent Business released its latest Index of Small Business Optimism, which defines optimism as owners expecting growth within their companies and the economy. The most recent iteration revealed optimism for success rose slightly in May to a seasonally adjusted 93.8 points. For context, this is not as high as readings in 2015, but is still far above those recorded between 2009 and 2013. This optimism translates to a positive outlook for plans, with 12 percent of small businesses intending to increase their staff size.
NFIB also found that 9 percent of small business owners believe that now is a preferable time to expand their operations, boding well for the sector at large.
At the same time, smaller banks, credit unions and alternative financing saw declines in approvals. Considering big banks had improvements in seven of the nine months leading up to May, small-business owners may continue to look to these financial institutions as the most fruitful financing option.
3. Borrowing behaviors move backward
In the years directly following the recession, alternative lenders rather than larger financial institutions were the dominant source of funding for small businesses. However, that trend may be changing course. The most recent Biz2Credit report found big banks approved 23.2 percent of small-business loans in May, which is 6 percent higher than the same month in 2015.
Keep an eye on these and other hot trends in the small business sector to see how your company can capitalize on exciting opportunities.
Here are 3 hot small business trends:
1. Video marketing is spreading quickly
Video creator Animoto recently published an infographic regarding entrepreneurial use of video marketing and more than half of small business owners cited the use of video marketing in the 12 months leading up to the survey. More than three-quarters of those surveyed reported a noticeable impact to their businesses, and 60 percent aim to put more spend into video marketing in the next year.
In terms of platforms, Facebook is at the top of the priority list, with 44 percent of owners and marketers intending to invest in promoting their videos through this platform, while YouTube is next in line with under 20 percent of small businesses looking to spend their budget on this platform.
2. Greater optimism, more hiring plans
The National Federation of Independent Business released its latest Index of Small Business Optimism, which defines optimism as owners expecting growth within their companies and the economy. The most recent iteration revealed optimism for success rose slightly in May to a seasonally adjusted 93.8 points. For context, this is not as high as readings in 2015, but is still far above those recorded between 2009 and 2013. This optimism translates to a positive outlook for plans, with 12 percent of small businesses intending to increase their staff size.
NFIB also found that 9 percent of small business owners believe that now is a preferable time to expand their operations, boding well for the sector at large.
At the same time, smaller banks, credit unions and alternative financing saw declines in approvals. Considering big banks had improvements in seven of the nine months leading up to May, small-business owners may continue to look to these financial institutions as the most fruitful financing option.
3. Borrowing behaviors move backward
In the years directly following the recession, alternative lenders rather than larger financial institutions were the dominant source of funding for small businesses. However, that trend may be changing course. The most recent Biz2Credit report found big banks approved 23.2 percent of small-business loans in May, which is 6 percent higher than the same month in 2015.
Keep an eye on these and other hot trends in the small business sector to see how your company can capitalize on exciting opportunities.
