Small Business Trends and Predictions for 2016
This past year was a big year for the small business sector as entrepreneurs and small business owners across the U.S. saw significant growth, especially when compared to five years ago or even just last year. Analysts believe that 2016 will not be any different, with the sector full of many new small business trends and those we have seen developing over the past few years.
Small business loans
Financial insiders believe that entrepreneurs will flock to online options to secure a small business loan. Although online small business loans only account for 2 percent of small business loans today, that number is expected to jump to 16 percent by 2020.
It is estimated that women will own more than 40 percent of small businesses in 2016, and up to 50 percent by 2020 if the current trend continues on course. By contrast, only 36 percent of small businesses were owned by women in 2012.
The primary industries where female entrepreneur growth is being seen are agriculture, forestry, fishing and hunting, accommodation and food service, and manufacturing. Many of the items in this list may come to a surprise to many people who would not expect forestry and hunting to be hot growth spaces for women.
In the five years from 2007 to 2015, SBA loans have increased in size by 82 percent. SBA’s most popular loan called the SBA 7(a) program granted 63,000 loans totaling $23.6 billion during the 2015 fiscal year.
In addition to going after online loans and SBA loans, small business owners will finance their businesses in 2016 with business credit cards. This practice is far from new, but it is expected to continue to increase. After all, small business credit cards in the U.S. went from 9.9 million to 10.1 million in the last five years (2010 to 2015), and that is from the top three issuers alone (JPMorgan Chase, Bank of America, Capital One).
There is not much that politics does not affect, and small business trends are definitely not exempt. With the 2016 election approaching, the political landscape in America will become increasingly turbulent, which may influence small businesses in all industries. Seemingly irrelevant issues can mean a lot to your business during an election season, although there are many relevant issues facing the candidates, as well. The top three issues include minimum wage, tax reform, and healthcare.