Business growth opportunities for new entrepreneurs
Learn what industries are prime for small business growth.
In the second quarter of 2014, 220,000 new businesses started, while 205,000 closed down.1 Considering the numbers, you might wonder what industries or business types are the most viable for success. These three evolving markets may present a good opportunity to grow.
Connecting people: The cultural goods industry
The United States is a melting pot of culture. When people migrate here, they bring their culture and tastes with them. They may eventually want products from their country of origin. Locals may also want to explore and consume products from other places.
Shea Moisture, a personal care company founded by Liberian refugees Nyema Tubman and Richelieu Dennis of Sundial Brands, is an example of drawing from your culture to create a business. Their products are marketed for those who have felt underrepresented by big beauty companies. Shea Moisture was featured on the Inc. 5000 list of 2015 as one of the fastest-growing private companies in the country with a 511% three-year growth.
Look around your area and see what cultural products are missing. Consider ways you could produce or import them.
Feeling better: The organic industry
Because people want to live longer and enjoy a better quality of life, there is a demand for healthy offerings, organic foods and natural products. In 2015, the organic industry reached record-hitting product sales of $43.3 billion. Up 11% in total sales from the previous year, non-food organic products made up $3.6 billion while organic food sales made up $39.7 billion.2
The increasing interest in wanting to shop healthier and more consciously opens up the opportunity to develop a series of related businesses.
Going digital: The tech industry
The tech industry has enjoyed the greatest growth in recent years, and it's just the beginning. With the global IT industry estimated to grow to a value of $2.8 trillion by 2019, potential opportunities in tech-related business can include providing hardware, software, and services for infrastructure, information, and digital business.3
Some other needs in this area include computer programming, online education courses, data processing, as well as e-commerce and online marketing for products and services.
The world is changing at an increasingly fast pace. Technology and societal needs all create a series of challenges and opportunities for those who are prepared and willing to take advantage of them. Learn more about turning your business idea into reality.
1"Small Business Profiles for the States and Territories." Small Business Administration. 2016. https://www.sba.gov/sites/default/files/advocacy/all_profiles_10_18_16.pdf
2"U.S. organic sales post new record of $43.3 billion in 2015." Organic Trade Association. https://www.ota.com/news/press-releases/19031
3"Worldwide IT Spending Will Reach $2.8 Trillion in 2019 with the Strongest Growth Coming from the Healthcare Industry, According to IDC." Business Wire. https://www.businesswire.com/news/home/20160204005807/en/Worldwide-Spending-Reach-2.8-Trillion-2019-Strongest