I have some good news about small businesses. These words feel just as strange to write as they probably are to read, but it’s true!
Optimism was felt everywhere at this week’s SMBTech Summit, a virtual event hosted by GGV Capital where entrepreneurs and investors came together to discuss the platforms that power our modern economy. Jeff Richards, Managing Partner of GGV Capital, moderated panels on all topics, from customer success strategy to fintech solutions for small businesses.
The only thing missing was the fate and darkness that we all got so used to in 2020.
“We are in the seventh month of a global pandemic,” Richards told attendees, “but when you look at the tools to start a business, the small business owner is never more.”
Anyone looking to sell a product or service now has access to free or inexpensive tools that they can use to connect with their target audience without a significant learning curve. Brent Bellim, CEO and Chairman of BigCommerce, said on the opening panel: “The Internet is the best thing that could ever happen to small business owners.”
I assure you that none of this is a hopeful spin on Enterprise Brass. A new impact report with data compiled by my company in collaboration with GGV Capital shows that 83 percent of small business owners in various industries and the US expect their businesses to perform better in 2021 than in 2020. Three Quarter of founders said they expect to spend more on technology in the next year. Most exciting, however, is that nearly every participant – 93 percent – said they would shut down and grow their business in the same amount of time.
There’s no denying that this year has been brutal, with natural disasters, a viral pandemic and racial tensions affecting the bottom line on Main Street. Unsurprisingly, 64 percent of owners surveyed said their business was worse in 2020 compared to 2019. Funds from the paycheck protection program and other government facilitations have long since dried up, and Congress has all but abandoned efforts to pass another stimulus round before January. However, a silver lining has emerged from this difficult business climate, forcing owners to make adjustments they have been considering or postponing for years.
For example, the corner mechanic’s shop could be cashless, and your favorite boutique might finally dive into the world of e-commerce to sell to anyone, no matter where. These profound digital transformations will change the way small businesses work in the years to come, and the panellists almost universally realized that it is the small business owners, not the titanic corporate actors, who will be nimble enough to introduce new and innovative aspects of our business take advantage of changing market.
“We’re going to look back in three to six months and say that obviously makes sense,” said Richards. “I’ve been doing this long enough for people to be innovative in difficult times.”
That’s not to say our small business innovators don’t face challenges. As I have documented in previous columns, the “New Majority”, including black, Hispanic and LGBTQ + owners, faced disproportionate challenges in 2020 that require targeted solutions, including rent cuts and additional loans and grants. We must use our political voice in next week’s elections to stand up for our individual and collective interests. We must also continue to find creative solutions that provide capital to those who do not have access to traditional lenders.
The fact remains, however, that small businesses retain their most valuable asset: the hope for a better future. Come on this New Years Eve, I’ll toast it.
The opinions expressed by Inc.com columnists here are their own, not those of Inc.com.
Comments are closed.