Small Business Trends: Stats and Trends Shaping 2024
This list includes all the small business statistics and trends every business owner/operator should know.
Tessa ZuluagaAuthor
According to a recent Pew Research Center survey, most U.S. adults (86%) say small businesses have a positive impact on the way things are going in the country these days. This endorsement isn't just a number—it's a testament to the resilience and innovation that small businesses embody.
But what's driving this positive perception? Today, small businesses are far from static. They're evolving and taking charge of embracing new trends that reshape how we work and how we shop.
In this article, we’ll outline the 10 small business trends that are shaping the landscape in 2024.
Let’s get started.
10 Small Business Trends in 2024
1. User-generated content
This trend involves leveraging content created by customers, such as reviews and social media featuring a company's products or services.
User-generated content gained traction with the rise of social media platforms and review sites. However, its importance for small businesses has grown significantly, particularly as consumers increasingly value authenticity and peer recommendations. EnTribe’s The State of UGC 2023 report reveals that 83% of consumers are inclined to purchase from brands that share real customer content.
One business that does a great job posting this type of content is Billy J, a fashion boutique. This brand reposts customers’ social media photographs on their Instagram to show their followers real-life examples of their clothing being used.
Some ways small businesses can include user-generated content in their marketing strategies include:
Encourage customers to share product photos on social media
Feature customer testimonials prominently on websites and in ads
Run contests for customer-created content
Collaborate with micro-influencers to create relatable content
By showcasing real customers using their products or services, businesses can create a sense of community and authenticity that resonates with potential buyers. Let the customers create your social content for you!
2. SEO best practices
Search Engine Optimization (SEO) remains a critical strategy for small businesses aiming to increase their online visibility. According to BrightEdge, SEO drives 1,000%+ more traffic than organic social media. However, the landscape of SEO has evolved dramatically, particularly with Google's increasing use of artificial intelligence in its search algorithms.
SEO as a practice emerged in the mid-1990s, shortly after the launch of the first search engines. Over the years, it has continuously adapted to changes in search engine algorithms and user behavior.
In 2024, small businesses face new challenges and opportunities in optimizing their online presence. Google's AI advancements have made ranking at the top of Search Engine Results Pages (SERPs) increasingly difficult.
Key SEO trends for small businesses in 2024 include:
Focus on user experience and page speed
Creation of high-quality content that addresses user intent
Optimization for voice search and featured snippets
Emphasis on local SEO for brick-and-mortar businesses
Increased attention to E-A-T (Expertise, Authoritativeness, Trustworthiness)
As search engines continue to evolve, staying informed about the latest SEO best practices and adapting strategies accordingly will be crucial for small businesses looking to maintain and improve their online visibility.
Look at Google as a tool you can use to your advantage, not as another competitor.
3. TikTok shop
We’ve all heard about TikTok, but have you read up on TikTok Shop and its success?
TikTok Shop represents a significant shift in the e-commerce landscape, blending social media engagement with direct shopping experiences. This trend has rapidly gained traction, offering small businesses a new platform to reach customers and drive sales. And one of the best parts? It creates repeat business. Approximately 81.3% of TikTok Shop sales came from existing customers in February 2024, up from 64% in November 2023, according to Earnest Analytics.
TikTok Shop has become a key player in the social commerce space and is particularly attractive to small businesses due to its large, engaged user base.
Key aspects of TikTok Shop for small businesses in 2024:
In-app purchasing: Users can buy products directly within the TikTok app, reducing friction in the customer journey.
Product showcase: Integration of product catalogs allows businesses to tag products in their videos, making them easily discoverable.
Influencer partnerships: Collaborations with TikTok creators help small businesses reach wider audiences and leverage trust-based marketing.
AI-powered recommendations: TikTok's algorithm helps match products with interested users, potentially increasing conversion rates.
As social commerce continues to evolve, TikTok Shop represents a significant opportunity for small businesses to connect with younger demographics and tap into impulse buying behaviors. Success on the platform often requires a mix of creativity, authenticity, and strategic use of TikTok's features.
It just might be time to renegade your way to increased sales...
4. Artificial intelligence
Artificial Intelligence (AI) has emerged as a game-changing technology trend for small businesses. According to the 2023 BPC and Morning Consult poll, 83% of small business owners who use AI say it has helped improve systems, increase efficiency, focus time on more valuable tasks, and help produce content.
You may ask yourself, but how many businesses are actually using AI? According to Forbes, nearly half (48%) of small businesses started using AI tools in the past year, and 29% have been using them for one to two years.
ChatGPT kickstarted this AI surge and many small businesses use the tool to draft write-ups and help with social media captioning. But nowadays you can use AI for all sorts of operations. For example, according to Statista, 58% of marketers currently use AI technology to help source the right influencers for their campaigns.
Key AI trends that can improve business operations in 2024:
Chatbots and virtual assistants: AI-powered conversational agents handle customer inquiries, schedule appointments, and provide 24/7 support.
Predictive analytics: AI algorithms analyze business data to forecast trends, optimize inventory, and inform decision-making.
Personalization: AI enables hyper-personalized marketing campaigns and product recommendations based on customer behavior and preferences.
Voice and image recognition: These technologies enable new customer interaction methods and streamline operations in various industries.
AI-powered content creation: Tools that generate written content, design graphics, or edit videos are becoming increasingly sophisticated and accessible.
The robots are here and it might be time to let them help run your business.
5. Subscription-based models
“Make sure to subscribe!”
This trend involves customers paying a regular fee to access products, services, or content on an ongoing basis.
While subscription models have existed for a long time in various forms (think newspapers or magazines), the digital age has revolutionized and expanded their application. The modern subscription economy began to take shape in the early 2000s with the rise of Software as a Service (SaaS) companies.
According to Forbes, “existing subscription brands grew their overall customer base by 31% in 2021 alone, reflecting that consumers appreciate the ability to partake in subscription services rather than purchasing goods, services, or content outright.”
Some ways small businesses can implement a subscription-based model in 2024 include:
Product subscription boxes: Curate themed boxes around your products (e.g., beauty, snacks, books) and offer them on a monthly or quarterly basis.
Membership programs: Create a membership that provides exclusive benefits like discounts, early access to new products, or members-only events.
Digital content subscriptions: If you produce digital content (like tutorials, courses, or e-books), consider offering a subscription for regular updates or exclusive content.
Service packages: Offer a subscription for ongoing services, such as maintenance, consulting, or fitness classes. This could be weekly, monthly, or yearly.
Loyalty programs: Transform your loyalty program into a subscription model where customers pay a small fee for enhanced rewards or benefits.
Implementing a subscription model requires careful planning and a solid understanding of your customer base, but it can significantly enhance customer engagement and revenue streams in 2024.
6. PR packages and micro-influencers
Another growing trend among small businesses is the use of tailored PR packages sent to micro-influencers for product reviews on social media. This strategy involves curating and sending carefully selected product samples, brand information, and promotional materials to influencers with followers that include the business’ target audience.
According to Matter Communications, 69% of consumers trust influencer recommendations. In addition, businesses earn $5.78 for each dollar spent on influencers, with some seeing as much as $18. This trend emerged as small businesses sought cost-effective ways to increase brand awareness and credibility.
Benefits for small businesses include:
Affordable marketing: Compared to traditional advertising, sending PR packages is often more budget-friendly.
Authentic product showcases: Micro-influencers can provide mostly genuine, relatable reviews.
Increased reach: Even with smaller followings, micro-influencers often have highly engaged audiences.
Targeted exposure: Businesses can choose influencers whose followers align with their target market.
To maximize effectiveness, small businesses can focus on creating unique, visually appealing PR packages that stand out and align with their brand identity.
7. Sustainability
Breaking news: consumers care about the planet – especially the young ones! Approximately 78% of consumers feel that sustainability is important. Even more, 6 in 10 Gen Zs (59%) and millennials (60%) are willing to pay more for sustainable products and services.
Sustainability has become a central trend for small businesses, reflecting growing consumer awareness and demand for environmentally responsible practices. This trend encompasses various aspects of business operations, from product sourcing to packaging and energy use.
The sustainability movement in small businesses has been building for years but recently has gained significant momentum.
For example, Seventh Generation, a company that produces household cleaning and personal care products, is committed to transforming the world into a healthy, sustainable, and equitable place for the next seven generations—and beyond.
Small businesses can implement sustainability through various means, such as:
Using renewable energy sources
Adopting circular economy principles
Sourcing local and eco-friendly materials
Implementing zero-waste packaging solutions
Offering repair and refurbishment services
8. Brand voice on social media
In 2024, small businesses are increasingly adopting a more relaxed and humorous tone on social media platforms. This trend involves brands shedding formal corporate language in favor of casual, relatable, and often comedic content that resonates with their audience.
This strategy has gained significant traction as social media became more integrated into daily life and users sought authentic, entertaining content from the brands they follow.
Small businesses can implement this strategy through:
Sharing relatable memes related to their industry
Using playful language in product descriptions
Posting behind-the-scenes content with a humorous twist
Engaging in light-hearted banter with followers and other brands
Sometimes it’s just not that deep.
9. Remote work
In 2024, offering work-from-home options has become a prominent trend among small businesses — depending on your business concept. This shift allows employees to perform their duties remotely, either full-time or in a hybrid model combining office and home-based work.
While remote work was gaining traction pre-2020, the global pandemic accelerated its adoption. By 2024, it has evolved from a necessity to a strategic advantage for many small businesses.
According to Owl Lab’s 2022 State of Remote Work Report, 62% (around two-thirds) of workers feel more productive when working remotely. In addition to this, remote workers save an average of 72 minutes daily from commuting, that is 6 hours a week.
Small businesses are able to implement this trend through:
Investing in cloud-based collaboration tools
Establishing clear remote work policies
Providing necessary equipment for home offices
Focusing on results rather than hours worked
Maintaining company culture through virtual team-building activities
WFH is here to stay!
10. Technology
Finally, embracing and investing in new technology has become a critical trend for small businesses seeking to stay competitive and drive growth. This trend can encompass a wide range of different technological solutions.
The push for digital marketing and operations in small businesses has been ongoing. But today, technology adoption has become less of an option and more of a necessity for small business success. In fact, 93% of today’s small business owners report using at least one type of technology platform to help run their business, with the average owner utilizing three different platforms.
Small businesses can implement this trend through:
Using a powerful POS system
Adopting cloud-based management systems for finances, inventory, and customer relations
Implementing e-commerce platforms to expand market reach
Utilizing AI-powered chatbots for customer service
Leveraging data analytics for targeted marketing and product development
Investing in cybersecurity to protect business and customer data
This technological shift is not just about adopting new tools; it's about reimagining business processes and customer interactions to stay relevant in an increasingly digital marketplace.
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Your business may be small but your potential is limitless. By staying agile, embracing technology, and focusing on personalized customer experiences, even the smallest companies can make a big impact. Check out more related resources below:
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DISCLAIMER: This information is provided for general informational purposes only, and publication does not constitute an endorsement. Toast does not warrant the accuracy or completeness of any information, text, graphics, links, or other items contained within this content. Toast does not guarantee you will achieve any specific results if you follow any advice herein. It may be advisable for you to consult with a professional such as a lawyer, accountant, or business advisor for advice specific to your situation.
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