It was no surprise that 2020 would begin a new decade — but few entrepreneurs in 2019 could have predicted the incredible change to the business landscape that 2020 would bring. Two years since the beginning of the COVID-19 pandemic, entrepreneurs continue to face new, unexpected challenges in the creation and persistence of their businesses. Here are a few trends that might alter business strategy over the coming months, which entrepreneurs and business leaders might need to watch:
Sustainability
“Sustainability” has been a buzzword for businesses for more than a decade, but as the climate crisis intensifies, consumers want companies to do more than pay lip service to the green movement. Many businesses have been able to survive by greenwashing their products — or implying sustainable practices without actually committing to them — but greater consumer awareness and communication has proven that this strategy does not work in the long term. In fact, large corporations that have been caught greenwashing, like Volkswagen, have suffered severe hits to their reputation and struggled to regain ground since.
Companies of all sizes need to find ways to reduce their environmental impact. Decarbonizing the supply chain is a significant step toward becoming a truly sustainable company, but businesses can also work toward responsible waste management and water consumption in 2022.
Employee Satisfaction
The Great Resignation of 2021 is continuing into 2022, and employers need to recognize that their behavior toward employees is as responsible for the lingering labor shortage as other global factors. Research into the employment exodus has found that employees have finally become fed up with their working conditions. In quitting, most workers are hoping to find jobs that offer more opportunities for advancement, more flexible scheduling, better benefits and higher pay.
Businesses need to learn how to put employee satisfaction first. A contented workforce is a productive workforce, and a contented workforce is also a contented consumer audience. Improving pay and perk equity between leadership and labor is a good way to attract top talent and retain it through 2022.
Supply Chain Reliability
The past few years have been marked by a number of severe supply chain issues. The pandemic shutdowns of 2020 continue to send tremors through the supply chain; meanwhile, a slingshot in consumer spending is leaving many businesses scrambling to keep up with demand.
Though it might seem that the trials and tribulations of the pandemic are mostly in the past, businesses need to prepare for supply chain disruptions like natural disasters, geopolitical instability, transportation failures and more in 2022 and beyond. It is impossible to predict the long-term effects of such a massive global event, so employing strategic sourcing and adding diversity to the supply chain are imperative over the next decade.
Cryptocurrency
More than a decade after its introduction, cryptocurrency has taken the world by storm. This speculative asset has become exceedingly valuable for building wealth, and more and more consumers are generating digital wallets full of cyber coins. The most outspoken proponents of cryptocurrency believe that it will gain universal adoption thanks to its noteworthy advantages, like its immutability, and already, El Salvador accepts the largest cryptocurrency, Bitcoin, as legal tender.
Businesses might not want to commit to accepting payments through cryptocurrency until the crypto market stabilizes. In the meantime, business leaders can take advantage of the foundational technology of cryptocurrency: blockchain. Large corporations like Walmart and UPS have adopted blockchain tools to better manage complex systems, like the supply chain. Indeed, blockchain could replace less secure networking tools, and the sooner business leaders understand blockchain tech, the better.
Authenticity
Today’s consumers have endured obfuscating marketing campaigns for most of their lives, with the result that many can easily identify when a brand is being facetious. Consumers are clamoring for human connections to the companies whose products they most cherish, and business leaders should devise systems for delivering authenticity. Improving the transparency of business operations is an excellent first step, and delivering brand messages with empathy, compassion, honesty and even vulnerability demonstrates a business’s commitment to connecting with its target audience.
Businesses operating in 2022 survived the pandemic — but none survived unscathed. Now, businesses need to look to the trends that will carry them to success in the coming decade.
