As small business owners entered the second year of the global pandemic, it took a mix of savvy, resilience and technology to overcome the numerous challenges that arose within the economy. Retail outlook slowly returned to steadier ground.
Either through necessity or inspiration, the pandemic pushed many people into becoming small business owners or entrepreneurs. These new small business owners are stepping into unprecedented territory, where supply chain issues, staffing and contactless payment have become the new norm.
But for small businesses who can respond nimbly to obstacles in the marketplace, there is a reward – as consumers are committed to supporting small business more than they did before the pandemic.
Here’s a Recap of Some of the Most Significant Challenges Merchants Faced in 2021:
1. It’s Takeout Time
For many restaurants, takeout orders were simply a lifeline during rough patches. Now, takeout is a critical revenue stream for many business owners, who’ve pivoted to business models that accommodate a continued desire by customers to order takeout. Many small business owners who turned focus to new tools, systems and procedures were able to capitalize on to-go and delivery business as an integral revenue stream and unsurprisingly a large number of consumers will continue to order takeout at the same level even post-pandemic.
2. Safety First
With continuing concerns about COVID-19 and its variants, small businesses have had to adapt quickly to address those concerns by offering mobile ordering and contactless payment processes that are simple and safe, as well as minimizing checkout lines with faster, convenient checkout experiences with mobile-self check-out or payment kiosk. A recent study2 shows that 63% of consumers indicate they would switch to a business offering contactless payment options. And as more businesses had to accommodate social distancing requirements, being able to process orders and payments quickly has made for a more streamlined experience for customers.
3. Supply and Demand
Supply chain woes have hit businesses hard, especially those who rely on a steady stream of fresh products or restaurant supplies, menu flexibility has been critical for restaurant owners. Being nimble and pivoting to new revenue streams has managed to keep some small businesses afloat.
4. Now Hiring
One of the major challenges many businesses have faced this year has been an extremely tight labour market. This is an even bigger challenge for smaller businesses, who may not be able to offer the competitive wages that some larger employers can. But that doesn’t mean small businesses aren’t landing quality employees; instead, owners are becoming more inventive with their hiring, using out-of-the-box approaches to attract talent. Owners who can showcase their passion, connect their business to their community and make prospective employees feel needed can stand out in a crowded job market. And, offering prospective employees the opportunity to learn something new or use new technologies daily can attract top talent looking for ways to build their knowledge and career now and in the future.
5. Pay Their Way
Research shows that an increasing number of consumers make no purchases with cash. As paying with cash becomes one of the least palatable options for customers in their quest to reduce germs and contact, businesses that want to attract more customers must be willing to accept a wide range of payment types. No-touch payments have increased significantly across Asia Pacific. What’s more, customers have shown a willingness to adopt new technologies to reduce unnecessary contact. A recent study1 cites that 94% of consumers in the Asia Pacific region say they’ll consider using at least one emerging payment technology this year. Mobile payments have also boomed over the past year. But for customers who aren’t ready to tap to pay for purchases, business owners should make sure they can quickly and efficiently process credit cards, debit cards, QR codes and more.
Sources:
1) Mastercard New Payments Index
2) Visa® Back to Business Study
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