Here’s Why 2021 May Is A Better Year Than 2020 To Start A Biz
The year 2020 will long be synonymous with the term ‘pivot’, with companies focusing on survival rather than growth.
2020 has forced companies to go digital and make inefficient business processes redundant.
It also revealed shortcomings across industries, and companies had to look at the way business was generally conducted.
If you’re wondering if this is the best time to start a business, here are three reasons why 2021 will be a great year to start your business.
Increased consumption of online content
The coronavirus pandemic has accelerated the digitization of the nation by leaps and bounds.
It has now become easier and more accessible for ordinary people to start businesses such as e-commerce, virtual assistant work, or coaching.
On the one hand, e-commerce has jumped almost 40% as a result of Covid-19 if you are looking to start an online business.
There has also been an increase in digital talent platforms, creating a new market for highly skilled freelance work as the world moves towards remote work. With these digital talents, it’s now easier than ever to hire freelancers for your business.
According to the Harvard Gazette, a growing ecosystem of over 300 talent platforms has emerged as digital transformation has taken place.
Consumption of online content is also higher than ever, with people staying at home and working remotely. This means that businesses operating in the online space can potentially reach more customers or talent to join them.
In fact, the number of people worldwide using the internet increased to 4.54 billion in January 2020, an increase of 7% (298 million new users) from January 2019. Covid-19 has further increased Internet use 70 percent. hundred.
Additionally, people aged 65 and older are expected to continue their online transition during Covid-19, as they increasingly shop online and embrace digital payments, suggesting the internet is not just for the older. youth.
A survey of 2,000 Internet users aged 16 and over revealed that 43% of people in this age group have done their shopping online more since the start of the crisis, compared to 42% of all adults.
In comparison, in May 2019, only 16% of people aged 65 and over shopped online at least once a week.
Emergence of new opportunities
While 2020 may have killed many companies, it has also sparked the birth of ingenious business ideas.
For example, we have seen 3D printing companies using 3D technology to manufacture personal protective equipment (PPE) to deal with shortages.
3D printing has helped us see for ourselves the possibilities of technology. As a result, vital ventilators and respirators were 3D printed and delivered to other countries faster.
As a result, many companies are revisiting how products are made and some are considering ways to bring manufacturing back locally.
The Asia-Pacific 3D printer market is expected to grow 21.4% over 2020-2030 with a total addressable market cap of $ 58.83 billion despite the impact of COVID-19.
We have also seen the creation of more plant-based options to reduce food insecurity, like a plant-based egg or cell-based shrimp.
To this end, Singapore has stepped up efforts to develop the alternative protein industry in recent years, such as a US $ 50 million fund raised by Big Idea Ventures – backed by Temasek, Tyson Foods and Buhler – to invest in startups. innovations working on alternative proteins. .
The government also took a significant step forward by committing a total of S $ 144 million to catalyze and facilitate further investment in the agri-food space, which included priority areas such as urban agriculture and alternative proteins.
These innovative business ideas would not have come to fruition without the virus. If these needs existed before, it was less urgent to develop solutions for them.
If you think about the solutions you wish you had that are not currently being met, chances are others are looking for the same solutions.
Therefore, 2021 may well be the best time to seize these opportunities.
When starting a business, make sure it is specialized and focused. Instead of capturing the entire market with a single idea, target an under-represented customer or industry.
Lack of time is no longer an excuse
It is true that the pandemic has forced millions of people to quit their jobs.
It gives us the opportunity to execute this business idea that we always wanted and to start our own businesses.
Remote working becoming the norm also means that we have more personal time to execute this business idea.
Therefore, there is no excuse now for saying that “there is no time” to start entrepreneurship.
In fact, there are a few companies that started out as passionate projects before they grew into big ones.
For example, Love, Bonito was started when its 3 founders sold clothes online to earn extra pocket money. They pooled a total of S $ 500 to start the business, and the home-based business quickly grew into a full-fledged business.
The duo behind Vintagewknd started the brand as a passionate project and sold their carefully selected vintage pieces on Carousell.
They were juggling their full time jobs before they took a leap of faith and started Vintagewknd as a full time project.
More Grants Available for S’pore Businesses
Singapore is considered one of the best places to start a business, and the good thing is that there are many programs available to help new businesses get started early on.
In August, improvements to the Startup Founder SG program were announced by the government.
One of those enhancements is a new three-month business creation program to help entrepreneurs build their startups.
New Singaporean entrepreneurs can now access a grant of S $ 50,000, up from $ 30,000 previously, to help them launch their business ideas.
The government had also pledged an additional $ 300 million to Startup Equity at the 2020 Supply Committee of the Department of Trade and Industry (MTI).
Startup Equity was created to catalyze further investment in Singapore-based deep tech startups in key emerging sectors including advanced manufacturing, pharmbio / medtech, and agribusiness technology.
Under the Startup SG Equity program, the government will co-invest with independent and qualified third-party investors in eligible startups.
Following MTI’s 2020 Procurement Committee, programs will be enhanced to raise the investment cap for deep tech startups from $ 4 million to S $ 8 million and invest in selected venture capital firms who will in turn invest in high-tech startups. .
Also, the rental costs for retail space and office space are significantly lower now, so this might be a good time to start a business.
A year of new beginnings
Overall, 2021 is set to be a year of renewal as businesses reorient their strategies and see how they can do things differently than before.
It is also a clean slate for us to reassess our goals and act accordingly, such as becoming an entrepreneur.
Although 2020 hasn’t been the best year, you can start to seize the opportunities and start your own business from 2021.
Featured Image Credit: Tran Mau Tri Tam on Unsplash
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