In the last decade, there hasn’t been a better time to talk about upcoming changes to startup entrepreneurship than right now. COVID-19 has changed where we work and how we work.
Big brands (like Apple) and their focus on user privacy have changed how businesses market and advertise. And the Great Resignation is just one symptom of an economy that’s transitioning away from full-time work and toward part-time gigs.
What does this mean for entrepreneurs, exactly?
Here are five ways the landscape is changing in 2022 — and beyond:
1. Increase in freelancer demand
In 2020, there were 67.6 million freelancers in the U.S., up from 57.3 million in 2017. Even more telling, 50% of respondents between the ages of 18 and 22 participate in freelance work.
Freelancing is the wave of the future for America’s workforce. And there are a lot of good reasons for that — it allows for greater flexibility, more freedom and better earnings.
According to RealWire, 45% of freelancers saw an increase in demand as a result of COVID-19 and the Great Resignation. Businesses need workers — and they’re increasingly willing to hire freelancers to fill gaps.
If you want to set out as a freelancer, that’s good news. If you need to find workers for your business, then you might spend a little more time looking for freelancers and a little less time looking for full-timers.
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2. Transition from advertising to organic marketing
iOS 14 and it’s slew of privacy protections might have been good for the consumer, but it’s shaken up the marketing landscape in a big way. Facebook ads are getting more expensive, targeting the right audience is getting more difficult and tracking customer behavior is becoming obsolete.
Ryan Dossey, founder of Ballpoint Marketing and Call Porter, wrote recently, “I’ve been involved in marketing as a real estate investor as well as a business owner since 2014. In the past seven years, we’ve seen dramatic changes in what consumers respond to … ad fatigue and discernment have grown exponentially. This is why we’ve moved to content with humor, value ad retargeting campaigns, mail written with pens, and built out an extensive online presence.”
He’s right.
As consumers demand more data privacy, businesses will need to leverage organic tactics like influencer marketing, affiliate marketing, SEO, referrals, organic social media marketing and maybe even mailers written with real pen and ink.
The sooner, the better.
3. New side hustle marketplaces
Not everyone who’s leaving the workforce is doing so as a high-paid freelancer — many are opting for the freedom and flexibility that side hustle marketplaces offer.
You can grocery shop for other people or deliver food through DoorDash, rent out your car through Turo, rent out your property through AirBnB, and list a variety of different services on Fiverr or UpWork.
The gig economy grew by 33% in 2020 and is expected to support more than 50% of the population by 2027, according to Forbes. How’s this changing startup entrepreneurship?
Well, for low-budget entrepreneurs, these side hustles can be a great way to save extra cash for a future venture. Additionally, launching a new marketplace that connects buyers and sellers in a particular niche can clearly be a lucrative pursuit …
Maybe that’s your next business.
4. Access to talent from all over the world
Historically, business workforces have been limited by the talent available in the city where its located. Not anymore. In 2019, for the first time, the majority of new hires between the ages of 25-54 were people of color, according to the Washington Post.
As so many positions — whether full-time or freelance — have moved from in-office to remote, workforces have diversified. Talent from all around the world is now competing directly with each other and businesses have access to the best talent they can afford, no matter which part of the globe those people come from.
It also means that highly skilled workers can command much higher rates — since finding a remote job is super easy. This is good news for everyone. If you’re a startup entrepreneur, then there’s no shortage of talent available to you with a little bit of research. Find the best people that your budget can buy and hire them, no matter where they’re located.
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5. The introduction of crypto, NFTs, and VR
No one really knows exactly how cryptocurrency or NFTs are going to impact the economy … but it’s almost certain that they’re going to find their footing.
After all, these are much more than internet fads that come and go — crypto and NFTs represent new methods for buying, selling, trading and creating. The entrepreneurs who figure out how these things apply to everyday consumers will likely be the world’s next billionaires.
VR is another thing that’s changing how people interact online. Put on a $300 headset and enter new worlds in a way like never before. Meta, the new name for the parent company of Facebook, is putting all of its chips on VR — working to build the “metaverse.”
How that will impact startup entrepreneurship is yet to be seen. But whatever it is — organic marketing, freelancing, side-hustles, diverse workforces, crypto, NFTs or VR — there is no shortage of changes coming to the entrepreneurial ecosystem. So keep your eyes peeled for opportunity …
The next few years will be full of them.
