There are five major trends in the 2020s that are changing people’s perspectives about businesses. We believe these trends will significantly affect the way entrepreneurs run their businesses and seek opportunities. The five trends will cause a significant shift in the business landscape, the greatest the world has ever seen. These trends are:
- Retiring Baby Boomers– From 1946 to 1964, the birth rate saw a considerable spike. This sudden growth in population is called the Baby Boom. Baby Boomers had a substantial impact on the economy. Baby product companies, the music industry, the automobile industry and the real estate industry saw a massive increase in sales owing to this group of people. However, today, these people are retiring and shifting from wealth accumulation to liquidation of it. This trend ought to have a significant impact on financial markets, government policies and economies.
- Millennials in Management – The Millennials (1981-1999) are starting families, buying homes and getting into management. The Millennials are, however, different from the other generations as they have the first people to have had access to technology. These were the first generation to use credit cards and take university loans. Therefore, they believe in ‘access over ownership’. The business models of the previous generation do not suit this group of people.
- Technology Unemployment – Technology has been a part of our lives for about 50 years now. Technology makes work much more efficient and highly productive. Today, an accountant with a laptop and a driver with an onboard computer navigator are considered better at their jobs and more efficient. However, this may not be true to all kinds of job. Businesses can produce twice as much as they could before with less than half the workers.
- Government Austerity – Government, has been struggling to generate taxes to sustain the spending and borrowing habits of the past. For hundreds of years, the government has been defined by geographical boundaries. This geographical boundary has become a blur in the age of the digital world. It has become easy for businesses to move their businesses and revenue internationally for profits and low tax environments. Companies can easily outsource their work to low-income countries to reduce labour cost. This will create a vast deficit for the government.
- Consumption to Connection – Businesses have discovered that customers want more than just products. The customers are looking for businesses to solve real problems and social issues. People go for companies that show vision and value and do not only aim for profit-making. In the 2020s, businesses need to take stands and voice out their opinions as these might polarise some people, but more often than not, creates a massive fan base for potential customers.