4 Trends in 2023 That Impact Small Businesses
As another year is drawing to a close, it’s helpful to look back at the business trends of 2023. Where have we been and where are we going? It’s important to know the territory so you can navigate a path forward for your business.
Business Trends of 2023
Here’s a look at four business trends in 2023:
1. The Rise of AI
ChatGPT grabbed all the headlines at the end of 2022, leading to artificial intelligence (AI) dominating the news in 2023. In the midst of breathless headlines, quips about the robot uprising, and news stories with the obligatory ‘AI wrote that paragraph’ approach, businesses have been cautiously exploring AI. (Full disclosure: We did not use AI to write this paragraph or any other.)
The challenge is two-fold—where can you use AI and how do you keep employees from feeling like they’re training their robot replacement.
Where to use AI: “I'm very confident that something that you do right now is easily automated by AI if you're running a small business, whether that's writing marketing copy or building something in Excel or writing an email you don't know how to word,” Derek Pando, founder of Beeloo, told NerdWallet.
How not to replace workers: The ‘replaced by a robot’ trend decimated and transformed the manufacturing industry, so how is AI any different? There are things AI is good at and there are things that still require a human. The key is to implement AI in ways that can tackle the drudgery and free up humans for the real creative work.
2. Economic Uncertainty
Inflation, recession, and all the scary economic buzzwords have also dominated headlines in 2023. But the much hyped recession never materialized and inflation is stabilizing. What’s happening? Nobody knows.
While uncertainty is always difficult to navigate, there are things a small business can do to survive. A big one is to focus on the fundamentals. Keep your expenses in check and make sure you’re making the most of your resources. Look at your income and make sure you’re charging enough—freelancers and small businesses frequently fall into the trap of undercharging.
The economic outlook will likely continue to be murky, especially with our next trend. The best you can do is be prepared to handle whatever comes next.
3. Political Upheaval
While 2023 wasn’t an election year, the impact of elections made for a stormy political season. Republicans took power in the House of Representatives, ushering in a historic power struggle that reverberated all year with battles for the speakership and fights to keep the government funded. Here in Minnesota, the DFL’s trifecta in the legislature and governor’s office meant swift change and a lot of it.
The impacts on businesses can vary by industry, but it’s important to pay attention to what taxes, regulations, and programs might help (or hinder) your work.
And 2024 is likely to be more of the same, especially as the presidential election kicks into high gear with a likely repeat of the 2020 matchup.
What’s a business to do? All the drama and divisiveness can be a distraction. Speak your mind and support your causes, but be wary of how exhausted people are of the constant political battle.
4. Remote Work
The lauded return to normal after the COVID-19 pandemic has still not materialized. While some corporations have pushed workers to return to the office, many have embraced a more flexible approach. Work-from-home seems to be here to stay.
Maintaining a happy workforce means paying attention to what your workers want, and that still seems to be flexibility in location. As companies try to repurpose office space, that flexibility is key. Coworking starts to look a lot more attractive when workers want to get out of the house but a full blown office isn’t needed. Evolve Workplace is here to help.
What’s Next: 2024
Here’s to another year. We hope you were able to weather the storms of 2023 and we wish you best as we head into 2024.