What are the most popular types of businesses for entrepreneurs to start?
The business world is made up of many types of organizations⎯from start-ups to more established firms and huge multi-national corporations. One thing that business, in all its guises, relies on though, are entrepreneurs. These are the visionaries who not only have an idea to change the world but also the drive to see them come to fruition.
For this reason, entrepreneurs form the backbone of our economy and are crucial for its ongoing prosperity. 2022 saw over 30 million small businesses operating in the USA, and this shows how important entrepreneurs are. But which are the most popular type of businesses that people choose to set up?
Key economic metrics can tell the story
Although some sectors remain perennial favorites for business owners starting out, casting an eye over key economic metrics can give a good idea of the most popular. Gross domestic product numbers are a case in point⎯but what is gdp and how can it help?
GDP gives a snapshot in time of a country’s economic health. Due to this, it can help show not only the prosperity of the country’s economy but also which sectors within it are doing well. GDP data, therefore, can be one way to look at which types of businesses are doing well, and which are the most popular with entrepreneurs.
But which sectors seem to be the most popular in general for people looking to start their own business?
Service-based businesses
This is always a popular sector for people starting their own firms and can be quite wide-ranging in terms of what each individual service business does. The key thing to remember is that these kinds of companies sell their unique skills to people who need them/don’t have them themselves.
This can include things like setting up a graphic design company, digital marketing services, or online tutoring business. Service-based companies are popular because they do not usually need much capital to set up, can be started pretty quickly, and can prove lucrative if the skills offered are in demand.
Retail
This is another very popular sector for entrepreneurs when setting up a new venture. 2020, for example, saw over one million retail firms in the USA; and this number is likely to have risen since then. As the name suggests, this covers any company that sells goods to consumers for a profit.
Although traditional high-street retail stores are still going strong, it is, perhaps; online retail that is an area that many modern entrepreneurs target. With the vibrancy of the global e-commerce market and the growing demand for the convenience thar online shopping brings, many business owners will now be thinking about opening up a retail store online.
Hospitality
One industry that seems enduringly popular with budding entrepreneurs is hospitality. This sees many people choose to set up their own café, bar; or restaurant when making the move to be their own boss. Although it might have taken a hit in recent times; it still remains a top choice for entrepreneurs and is back on the up now that people are socializing again.
But what is it about this sector that draws so many business leaders to it? As you would expect, the potential for profits is appealing, as is the relatively straightforward nature of the business. Running your own hospitality business is also great for getting creative with your vision and being able to control how your venue looks or feels.
Technology
Of course, we have to mention tech as a sector that lots of entrepreneurs move into. The size of the US tech sector in 2022 was estimated at around $1.8 trillion and has been on a positive trajectory for a while.
Much of this comes down to how central technology is to our lives now; and how prepared people are to spend money on the latest tech. Technology is also a massive part of all businesses and helps companies around the world operate efficiently.
Due to the above, lots of budding business leaders choose to set up tech-based firms. This could be anything from a company that develops mobile apps to those that produce the latest smart home tech devices or cloud-based business software.
Popular industries for entrepreneurs
The above highlights some key sectors that entrepreneurs flock to when starting out in business. Although there are other industries that also seem popular, the ones we have looked at stand out the most. Whether this will change in years to come, remains to be seen but the service; retail, hospitality, and tech industries rule the roost for now.
