The world has changed and continues to adapt to a new normal . In the midst of a growing process of economic recovery, we have a much more digital landscape than before. This achievement is something that companies – micro, small and medium – should undoubtedly take advantage of to better adapt to the present and prepare for the future.
At GoDaddy we want to better understand small business owners and their challenges so that we can serve them in the best way possible. This year we conducted the Entrepreneurship Survey 2021 and uncovered some fascinating data that reveals the exceptional ability of entrepreneurs to get ahead by taking a digital approach.
Even in adversity, many of the small business owners and entrepreneurs we surveyed in Mexico found a perfect opportunity to adapt their business strategy, reach new markets, and even create new businesses. Here are some of the top findings from the Entrepreneurship Survey 2021.
A new opportunity in the midst of adversity
Tough times often bring opportunities for those who can identify and adapt to the changing environment, and these small businesses show it. In Mexico, 45% of the companies surveyed were created in the last two years, indicating that they were established just before or during the global pandemic.
Likewise, small business owners have indicated that digital platforms are the best option to be close to their customers, noting that it is an opportunity they should take advantage of to market their products or services in the future. 84% of the participants declared having observed an increase in the activity in the social networks of their competitors, and 4 out of 10 have discovered more websites and / or online stores belonging to this sector.
The best strategy to grow your business: Online store + Social networks
Many small entrepreneurs were looking for opportunities to diversify their sales channels when the COVID-19 pandemic began. The survey revealed that 63% of them started selling online in response to the new environment, helping 50% offset losses in physical sales. In fact, 57% of the total respondents bet on a mixed strategy that includes both physical stores and online sales.
Currently, there are many online sales channels available, and our survey reveals that entrepreneurs are considering several of them based on what they value best for their business. For example, 73% of respondents plan to implement a website with an e-commerce within six months, and 6 out of 10 respondents consider that advertising on social networks is the best strategy to increase sales by Internet. Additionally, 69% of respondents have implemented a combined digital marketing strategy that includes social media, email, and website, among others.
This highlights the importance of using a separate e-commerce solution, such as a website with its own online store to support social channels. In this way, small business owners are in control of what happens on the Internet and can personalize the experience of their customers, which increases the connection between them and the brand. This is confirmed by the results of the survey that maintain that social networks (65%) and the creation of an online store (63%) are important tools for the strategic growth of a company.
One particularly interesting aspect that the GoDaddy survey measured was how entrepreneurs initially digitized. 76% of small business owners declared having created websites for their businesses on their own and without the help of a professional, of which 59% did it themselves and 17% with the support of a family member or friend. This statistic certainly speaks to the advances in accessibility and ease of platforms, and the importance of allowing even the inexperienced to create, edit and manage their own websites.
Accessibility encourages entrepreneurs to create their own websites, which could influence those who have not yet been digitized to take that leap. Today, there are “all-in-one” tools that allow entrepreneurs to join a clear trend of digitization, without the need to be experts in programming or design. Thanks to this, today a small company can compete and stand out in the market.
The road ahead
The use of digital channels for business growth has become a necessity for present and future business strategy. Given this, respondents affirm that they want to know better or learn to incorporate social networks (67%) and a website (48%) into their businesses.
However, although we are in an increasingly digital world, many SMEs are still not convinced that incorporating this approach can be beneficial. Of the total of those surveyed who operate exclusively under a physical store model, 48% do so because they prefer face-to-face contact with their customers, 37% say they do not know how to implement e-commerce tools, 23% believe that it is expensive sell online and 12% say they don’t have time to do this digital transformation.
With advances in easy-to-use technology, these claims could now be considered myths or misconceptions that have endured over the years. A while ago, you might need strong technical knowledge; However, with the right tools it can be simple, fast and intuitive to create a website, social media presence and online store, including options designed for every need and budget. The online presence helps to break down physical and time barriers, and has become a key aspect that facilitates the establishment and growth of a business.
After analyzing the results of our Entrepreneurship Survey 2021 , we are left with the firm conviction that Mexican entrepreneurs will continue to look for new ways to get ahead in the coming months. The start of a new year brings with it a renewed sense of optimism with companies that are already demonstrating their ability to innovate in the face of this new normal. We hope these results inspire small business owners nationwide to identify potential new and better strategies to help them grow throughout their entrepreneurial journey.