Changing Demographics Have Brands Growing to Serve Small Businesses

Four years after the global pandemic began with the Great Recession and the response to expand the opportunities of the gig economy and creators, the interest of entrepreneurs is increasing, while the US Census Bureau reports applications 5.5 million new businesses added by 2023. This trend will continue up and to the right!

As an entrepreneur and technology developer, I am excited about what the next decade holds for this critical growth sector of our economy as it faces major changes in demographics, business models and skills.

While Generation X and Baby Boomers tend to own small to medium-sized businesses (SMBs) today, data shows many smaller and more diverse groups are flocking to entrepreneurship, where the average age of starting a business is It’s 35 years old and it’s Black women. a rapidly growing group of entrepreneurs.

Unlike FedEx’s (FDX) local strategy, UPS (UPS) went heavy on the franchise route with their stores, so they are more in line with the SMB business organization – since that audience is their customers and partners they see.

I met with Sarah Casalan Bittle, president of The UPS Store, Inc., who had some insight into how they handle these business practices. “Today’s SMB owner looks very different than 10 years ago. We see this in our customers and online networks, and we are always working to present ourselves in new, unexpected and relevant ways for our sellers and business partners. serving. ”

Recent research suggests that 65% of Gen Z members who are currently working hope to start a business one day. And franchising can be one way to get there. According to the International Franchise Association, 31% of franchise businesses are minority-owned, compared to 19% of non-franchise businesses, a trend that shows up in brands like The UPS Store. The business community is growing across sectors, from shipping, returns, and pest control to lifestyle, health, wellness, and food.

I spoke with John Peyton, CEO, Dine Brands Global (DIN), the $8B 3500 restaurant group, which owns Applebee’s, IHOP and Fuzzy’s, who is optimistic about the sector’s growth prospects. . “We have made a unique decision at Dine Brands to keep nearly 100% of our restaurants owned and operated, providing a platform for entrepreneurs who want to achieve the American dream.” He added, “Franchising is not only a business engine for growth and jobs but offers a powerful opportunity to combine innovation with proven business practices, giving customers new ways to connect with the products they love.” know what they like.”

Activating Next-Gen Customers and Partners

When GenZ are customers and potential partners of the future, The UPS Store is reaching them in big and smart ways. Another way to go big is to activate the world’s largest LED screen – yes, the Las Vegas Sphere – it’s the latest way the 40-year-old brand has evolved into unexpected and unexpected places. growth to small businesses.

The UPS Store has created a larger-than-life experience for customers inspired by the company’s Be Unstoppable campaign. Eye-catching animations took viewers on a journey of how its network of over 5,300 stores helps businesses reach customers anywhere, with the ability to carefully package anything and send it out into the world width.

On Mother’s Day, UPS and The UPS Store unveiled an LED-equipped UPS package car in Austin as a billboard for “mom” businesses, and in the fall previously, the two brands implemented an award-winning 3D billboard in the Times. Square, featuring small business owners and the largest parcel delivery in Times Square history.

They’ve expanded these key campaigns across social media by leveraging social influencers – and it seems to be working. And, as digital marketing platforms become more visible, such a revolutionary process could point the way to reach Generation Z in today’s competitive short-term economy.

Back to the Future With Local Ecommerce

Like Walgreens ( WBA ) and CVS ( CVS ) footprints, UPS has stores within 10 miles of more than 85% of US residents. That SMB and consumer footprint is proving to be a powerful platform, as instant shipping (and returns) continues to power Amazon’s shopping addiction in America. About 350 billion packages were sent last year – which is set to hit 500 billion worldwide by 2028. And with this new technology is bold. has simplified the purchasing transition, SMBs and consumers have gone from asking ‘what day’ will my package arrive to expecting real-time tracking with accurate arrival times and proof of arrival.

“E-commerce, technology and the gig economy have increased opportunities for business innovation,” Bittle said. “That’s why The UPS Store continues to innovate and support it, whether it’s through online products like Sphere, the expansion of non-traditional spaces within universities and military foundations, or initiatives like our Diversity Living Program and ‘Start Small, Grow Big’ program help Junior Achievement USA.”

Leveraging Competitive Technology

Technology helps make business more accessible with less time and money. With the advent of online classifieds advertising, reaching the desired markets through personalized messaging is also becoming more accessible and cost-effective for small businesses that are developing.

Rapid advances in AI, changing platforms and changing audience preferences also indicate new trends and opportunities as companies develop their offerings to serve them, such as AI which makes it easier to buy and a long list of AI SMB tools that are becoming increasingly difficult. SMBs need help here.

Speaking to GoDaddy, US Independent President, Gourav Pani about his focus, said, “We have dedicated our entire team to helping entrepreneurs and small business owners leverage AI for their business, ” he added, “teaching them about this ability so they can help them. It can go up and compete with it is important to the success of small businesses.”

With this strategic mindset focused on the future, Bittle often reflects Wayne Gretzky’s famous words that other leaders mistakenly hesitate to, you know, skate where the puck is going! With 500,000 UPS employees in 200 countries the $91B company looks like it’s just getting started—and they have a lot of technology and resources that their employees have that can give customers a competitive edge.

“Technology has and will continue to drive change, but for our dealers and the small businesses they support, the customer will always be at the center,” he said. “Listening to our customers and adapting is how we stay relevant and elevate the customer experience.”