Due to the pandemic, economies across the globe have been caused to adapt and shift. Entrepreneurs can form a digital startup, to deal with an economy in flux. Digital startups allow the business owners to be with their own boss and to focus on something they are passionate about, often from the comfort of their own home.
According to research, 90% of startups fail. 21.5% of startups fail in the first year, 30% in the second year, 50% in the fifth year, and 70% in their 10th year. Entrepreneurs are able to act to prevent this, by utilising digital startup trends for 2022. These would not ensure long-term success, but they would definitely assist in achieving it. If entrepreneurs would like to acquire more information on the startup formation process, The Really Useful Information Company (TRUiC) is able to answer their questions.
Remote working
Due to the pandemic, remote working has been at the forefront of business trends since early 2020. Although remote working has proven to be effective, it is not completely successful as of yet. Concerns have been raised over the security of conference and video calling sites, such as zoom. There have also been concerns about front-of-office collaboration and personal remote process automation. To utilise this trend, entrepreneurs could venture into solving these issues and concerns.
e-Commerce personalization
The result of successful e-Commerce personalization is customer satisfaction. This would allow an excellent shopping experience with the ability for the business owners to connect with their customers more. It has been found that businesses who do not offer personalization will lose revenue and loyalty. For businesses to thrive, they need a supportive client base. For entrepreneurs starting digital startups in the e-Commerce sector to utilise this trend, they should focus on providing a better experience for customers.
Low interest rates
The Federal Reserve’s funds rate was lowered to between 0% and 0.25% in March 2020 by the Federal Open Market Committee. The Federal Reserve has also restarted it’s quantitative easing program. This acts to maintain interest rates at a low level on fixed-rate and long-term loans. In March 2021, the Federal Reserve announced that they plan to purchase $500 billion in US Treasuries and $200 billion in mortgage-backed securities. Due to this, the cost of loans dropped and mortgages fell. In 2022, entrepreneurs will be able to take advantage of this decrease in the cost of loans to save money and get the most value for money.
Sustainability
Green energy has become a very attractive investment, seeing China, some of the Gulf States, and India invest in it. The US has followed this trend, seeing that it has begun transitioning away from coal to green technologies such as batteries, carbon-capture methods and electric vehicles. Growth opportunities in the green economy seem to be substantial, especially across the energy, mobility and agriculture sectors. This shift to increased sustainability has created a trend, and this trend has provided opportunities for entrepreneurs to form digital startups in this field.
AI incorporation
Research has found that Artificial Intelligence (AI) has become the focus for almost 50% of startup applications. Because of this, AI is advancing to become part of household technology and many other products, services and offerings. This has started a trend, and this trend has not only made the lives of digital business owners easier, but has also offered entrepreneurs the opportunity to improve on current technology and solve issues in the sector to compete with competitors.
Robotics
Due to the pandemic, businesses have had to find ways to safely deliver products to their customers. Robotic delivery has been the answer by minimizing human contact. Large corporations such as Amazon and FedEx currently use delivery robots. Although this trend is not dominant right now, it will likely continue post-pandemic and digital startups will be able to use this trend to reach more clients and become more efficient and safe.
VR & AR
Virtual Reality (VR) and Augmented Reality (AR) operate where VR immerses the user in a specific environment while AR enhances it. Seeing that the global VR and AR market is expected to be worth $209.2 billion by 2022, more opportunities will be created for businesses in the tech field. This technology has dominated the gaming industry, and has started being used for training purposes. Examples of this have been seen in VirtualShip, a simulation software used to train U.S. Navy, Army and Coast Guard ship captains. Because of this, VR and AR have the potential to be incorporated in entertainment, education, marketing, and even injury rehabilitation.
The bottom line
To form a successful and profitable online business, entrepreneurs need to have a clear vision. Many of these mentioned trends have grown throughout 2021 and will dominate in 2022. For many businesses these trends are a beacon of hope as they offer a huge opportunity after the devastating pandemic.
