7 Leading Business Trends in 2023
Feb 21, 2023
The business environment is constantly evolving. This makes it necessary for every business to stay updated on the upcoming trends in business. It helps businesses identify opportunities, understand and adapt to customer preferences, and tackle competitors. Irrespective of what is thrown at it—a pandemic, a political crisis, or advanced technology, a business has to face the challenges and move ahead. We must learn that change is constant. Here are seven emerging business trends that will impact businesses and how they function in 2023.
1. Accelerated Growth in Alternate Payment Methods
Credit cards, debit cards, cheques, and cash are now being substituted by alternate payments like UPIs, e-wallets, etc., at a rapid pace. The pandemic paved the way for a business trend like the digitisation of payments, which has positively impacted businesses. Irrespective of whether the business is your local Kirana shop or a loan provider like FlexiLoans that offers you a loan in business, customers are more than obliged to pay for the services using alternate payment methods. According to a study conducted by PhonePe (a digital payments firm) and Boston Consulting Group (BCG), the digital payment market in India is expected to cross $10 trillion by 2026. It also indicates that Unified Payments Interface (UPI) will account for 73% of all the digital payment volumes by FY26.
2. Constant Growth in E-commerce
Though the pandemic slowed down e-commerce, various factors like increased usage of smartphones and internet usage have given e-commerce the desired push. E-commerce strategies must be adopted by businesses to stay ahead of their competitors. They can help businesses understand consumer behaviour, streamline their processes, and focus on areas calling for improvement. For instance, loan providers like FlexiLoans have made the process of getting a collateral-free business loan quite convenient and simple. According to the financial services consumer survey conducted by GlobalData in 2022, the value of the e-commerce market in India will see a hike of 22.9% Compound Annual Growth Rate or CAGR.
3. Demand for Cloud Migration
Businesses are spending extensively on the “Cloud”. Yes, cloud migrations are becoming a necessity in the fast-paced digital world, especially due to remote working. As a business, this technology helps you access your resources anywhere and anytime! This can help you make the best use of opportunities and adapt to any changes quickly. There is a minimal investment in hardware/software that is generally quite expensive compared to cloud services. Also, this technology’s security makes cloud migrations secure their place in the upcoming business trends in 2023.
4. “Go Remote” is the “New Workplace”
Workplaces are no more limited to physical offices; remote working began with the pandemic and has stayed on. This is an indicator that Remote Workplaces are here to stay for a long time. Hybrid and remote work has been gaining popularity. According to the report – “Third Wave and the future of Remote/Hybrid Work” by the job site Indeed, amongst the employees surveyed, 60% consider remote to be the biggest work trend, and 42% consider hybrid work. A similar view is shared by the employers as well, with a minor change in the percentage. Remote working has been a factor that has led to the rise in cloud migration too. Many companies are adapting to this new business trend of hybrid and remote working, considering the work-life balance benefits it offers employees.
5. Virtual Reality in Business
Virtual services refer to online education, remote working, e-commerce, cloud computing, telemedicine, etc. Virtual services offer customers convenience and ease of transacting without needing to make a purchase. Businesses that have adopted this method have benefited from reduced costs, streamlined operations, reduced labour, and improved understanding of customers. For instance, if you are a business in need of a small business loan, most application processes can be completed online–you can apply for a business loan and upload the documents required online. There will always be a demand for virtual services, allowing new businesses to showcase their products/services too.
6. The Impact of Artificial Intelligence (AI) on Business
Artificial Intelligence is taking over every aspect of the business. We have Chatbots addressing the basic queries of customers. AI is one of the popular emerging business trends that has helped companies achieve exceptional growth and success. Major online shopping and food delivery platforms make use of recommendation engines, SEO optimisation, pixel tracking, google route optimisation, etc. to increase their client base. Small businesses are also benefiting from better access to business loans that are assisted by AI platforms. AI models can help financial institutions by generating the business’ credit ratings. This helps the financial institution to analyse and decide the terms for the business loan. AI can transform businesses by improving their processes, increasing efficiency, and giving them a competitive advantage.
7. Demand for Virtual Services
We have seen the constant advancements in technology and its impact on businesses. However, in addition to this, the recent and ongoing COVID-19 pandemic has put technology in the form of virtual services on a pedestal. The demand for various virtual services like online shopping, online business loans, remote working, online education, virtual events, etc., has increased. As a business, we must adapt to this business trend swiftly, as this will help in the growth and success of the business. Virtual services help businesses reach a greater audience, mitigate various costs, and enhance customer convenience.
The year 2023 is focused on digital transformation and sustainable business practices. Technology will keep seeing advancements and will be leveraged in every type of business. There will be no shortage of future opportunities in business, but businesses must adopt and adapt to the business trends to stay in the game. This will help businesses reduce costs, streamline operations, enhance experiences, improve efficiency, and tackle competition. These future business trends will play a very important role in the success of any business in the years ahead.
Frequently Asked Questions
Q.1 Is it a good idea to start a business in 2023?
Ans: With automation and technological advancements, processes can be simplified. If you have a futuristic approach and are ready to accept and adapt to emerging business trends, starting a business in 2023 is a good idea.
Q.2 What are the areas of business that will see growth in the next 5 years?
Ans: Some areas that will see growth are content marketing, 3D printing, virtual education, the Internet of Things (IoT), Biometric sensors, etc.
Q.3 Which technology will dominate in the year 2023?
Some technologies to watch out for are Metaverse, Artificial Intelligence & Machine Learning, Blockchain, SuperApps, and Sustainable Technology.
Q. 4 What business trends should small businesses look out for?
Small businesses should keep an eye on business trends like AI, seamless customer experience, alternate payment options, voice-assisted technology, and sustainability.
Q.5 What are the biggest risks that a small business can face?
Some of the biggest risks a small business can face are financial risk, business interruption risk (due to sudden natural disasters), reputation risk, liability risk, and security risk.