2020 is and will continue to be a significant yet challenging year for small and medium-sized businesses. With increased competition, you need to prepare yourself and your business to outgrow the increasing competition. The following statistics will help guide your way into better decision making if you’re a small business owner or are interested in starting your own business. While you’re likely to face challenges, knowing the current trends will help you tackle difficulties in a more proactive manner.

1. Over 90% of businesses are small and medium sized
Small and medium-sized companies make more than 90% of global businesses. They are crucial to employment in various economies. Small businesses are key players in innovation and creativity across several industries. They play a large role in advancement (digitalization) and thus the global economy.

2. 55% of people start a business because they want to be their own boss
Motivation comes from several places, especially for starting a business. Nevertheless, the most prevalent reason for opening your own business includes wanting to pursue your own passion – this being the primary motivation. Being your own boss means having the freedom to boss of your time and management. It gives you the creative liberty to make decisions, how to work, where and when. Managing yourself gives you an independence like no other.

3. Millennials and Gen-Zers are 188% more likely to start a business
The new generation are the hustlers. They are 188% times more likely to show creativity, take charge and aim on creating/opening startups or a small side business. The GenZ brings fresh 21st century ideas and solutions to old problems through their ventures. Thanks to the online marketplace which has made the setting up a business much easier. Comparatively, traditionalists and baby boomers don’t bring that to the table.

4. 52% of SMEs experience labor challenges
Every company faces challenges and obstacles. Almost 52% of surveyed small business owners have experienced poor labor quality. Business owners say that it’s a struggle to find qualified and talented individuals, with good work ethics and potential.

5. 64% of small businesses see social media as the best too for marketing
64% of small businesses consider social media as their strongest marketing strategy. Studies shows that almost all small and medium businesses spend money on ads. But most of these are done digitally compared to traditional methods. 64% of ads are through social media followed by online marketing at 49% and print marketing at 36% and coming to TV ads at 22%.