5 small business trends to watch in 2024
Small businesses dominate the Australian landscape. From home-based eCommerce stores and self-employed naturopaths, to small architecture firms and the local mechanic, these small businesses keep the wheels of our economy in motion.
Defined by the Australian Bureau of Statistics as those with less than 20 employees, small businesses account for a whopping 97.3% of all businesses in Australia, and employ almost half (42%) of the private sector workforce. And in recent years, they’ve had to work harder than ever just to stay afloat. With 2023 touted as one of the toughest on record for this huge group, what’s in store for 2024?
As the economic landscape, customer expectations, and technology continue to evolve at breakneck speed, let’s dive into the top trends shaping the small business world in 2024.
1. Tech adoption continues at pace
No surprise here. Technology continues to be a game-changer in small business, rewriting the rules around everything from customer service to back-office operations. Still riding the 2022-23 Federal Budget wave that allocated up to $1 billion for digital adoption through the ‘Small Business Technology Investment Boost’ and ‘Small Business Skills and Training Boost’, small businesses will continue to adopt more cloud-based tools and solutions in 2024.
In your own business, you could explore tech tools that help overcome some of the resourcing and productivity challenges you’ve faced in recent years. For example, tools that automate repetitive tasks, help you do more with data, or free up valuable resources to focus on growth.
2. Artificial intelligence (AI) is embraced, with caution
No longer confined to science fiction movies, AI is firmly in the realm of the everyday. From chatbots that answer customer queries to generative AI tools that produce personalised marketing campaigns in a snap, AI is more accessible than ever for small businesses.
As it continues its meteoric rise, though, so too do the risks around its usage. Small businesses need to be wary about using it safely and responsibly — which means looking closely at things like data privacy and bias, while being completely transparent about AI usage. A great place to start in 2024 is developing or reviewing your AI adoption policy to make sure it follows the rules and protects your business from risk.
3. Customer experience remains a core differentiator
In a world saturated with choices, your customers don’t choose your products or services based on price alone. Rather, to win today’s customers, you need to deliver an exceptional experience.
And guess what? Those first two trends — technology and AI — will prove critical here. Use them to personalise every interaction and tailor your offerings to individual customer needs; and to respond faster and more effectively to customer enquiries. But don’t forget the human touch (more on that below), which can often prove the differentiator your business needs to succeed.
4. Sustainability is a key selling point
Every trend report includes a section on sustainability. And for good reason. People are more environmentally and ethically aware than ever, and apply this awareness to the buying decisions they make.
From ethical sourcing to eco-friendly packaging, small businesses can tap into this trend — demonstrating a clear commitment to environmental and social responsibility. Just be sure to back up every sustainability claim with evidence (and be honest about any gaps), to avoid accusations of greenwashing. If you’re not sure where to start, this sustainability checklist could help.
5. The human touch endures
While there’s no doubt technology is transforming the business landscape, nothing replaces an authentic human interaction. Building genuine connections with your customers and employees will become more critical than ever in 2024.
This could mean rethinking that influencer or AI-generated social strategy you’ve been using for the past few years, and replacing it with a genuine voice from your own business. It could mean opening a pop-up store for your eCommerce business, where customers could come in, handle the products and speak to the makers. It could be as simple as a follow-up phone call after you’ve delivered a service.
Here’s to a successful year ahead
No matter which industry your small business operates in, we hope 2024 is a successful year for you and your customers — and that the trends outlined above can work in your favour to help you grow and prosper.