An example of growth and adaptation to new needs
This article was translated from our Spanish edition using AI technologies. Errors may exist due to this process. Opinions expressed by Contractor the contributors are theirs.
The world has changed and continues to adapt to a new normal. Amid a growing process of economic recovery, we have a much more digital landscape than ever before. This achievement is something that companies – micro, small and medium-sized – 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 possible way. This year, we conducted the Entrepreneurship Survey 2021 and uncovered fascinating data that reveals the exceptional ability of entrepreneurs to move forward with a digital approach.
Even in the face of adversity, many small business owners and entrepreneurs we interviewed in Mexico found a perfect opportunity to adapt their business strategy, reach new markets, and even start new businesses. Here are some of the main results of the Entrepreneurship Survey 2021.
A new opportunity in the midst of adversity
Difficult times often present opportunities for those who can relate to and adapt to the changing environment, and these small businesses are showing it. In Mexico, 45% of businesses surveyed were created in the past two years, indicating that they were created just before or during the global pandemic.
Likewise, small business owners have indicated that digital platforms are the best option for being close to their customers, noting that it is an opportunity they should take to market their products or services in the future. 84% of participants said they saw an increase in activity on their competitors’ social networks, and 4 in 10 discovered more websites and / or online stores belonging to this industry.
The best strategy to develop 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 found that 63% of them started selling online in response to the new environment, helping 50% to make up for lost physical sales. In fact, 57% of total respondents are betting on a blended strategy that includes both physical stores and online sales.
Currently there are many online sales channels and our survey reveals that entrepreneurs are considering many of them based on what they value most about their business. For example, 73% of respondents plan to set up a website with a e-commerce within six months, and 6 in 10 respondents consider social media advertising the best strategy to increase internet sales. Additionally, 69% of those surveyed have implemented a combined digital marketing strategy that includes social media, email, and website, among others.
This highlights the importance of using a separate ecommerce solution, such as a website with its own online store to support social channels. This way, small business owners have control over what happens on the internet and can personalize their customers’ experience, increasing the connection between them and the brand. This is confirmed by the survey results which 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 measured by the GoDaddy survey was how entrepreneurs initially digitized themselves. 76% of small business owners report having created websites for their business on their own and without professional help, of which 59% did it themselves and 17% with the support of a family member or a friend. This statistic is certainly a testament to advancements in the accessibility and ease of platforms, and the importance of allowing even inexperienced people to create, edit and manage their own websites.
Accessibility encourages entrepreneurs to set up their own websites, which could inspire those who have not yet been digitized to take the plunge. Today there are “all-in-one” tools that allow entrepreneurs to embrace a clear trend of digitization, without needing to be programming or design experts. Thanks to this, a small business today can compete and stand out in the market.
The road ahead
The use of digital channels for business growth has become a necessity for current and future business strategy. Faced with this, the people questioned say they want to know each other better or learn to integrate social networks (67%) and a website (48%) in their business.
However, although we are in an increasingly digital world, many SMEs are still not convinced that integrating this approach can be beneficial. Of the total respondents who operate exclusively under a physical store model, 48% do so because they prefer face-to-face contact with their customers, 37% say they don’t know how to implement e-commerce tools , 23% think it’s expensive to sell online and 12% say they don’t have time to make this digital transformation.
With the advancement of easy-to-use technology, these claims could now be viewed as myths or misconceptions that have endured over the years. Some time ago you might need a good technical knowledge; However, with the right tools, it can be simple, quick, and intuitive to build a website, social media presence, and online store, including options designed for every need and budget. Online presence helps break down physical and time barriers, and has become a key aspect that facilitates the creation and growth of a business.
After analyzing the results of our Entrepreneurship Survey 2021, we are confident that Mexican entrepreneurs will continue to look for new ways to move forward in the months to come. The start of a new year is accompanied by renewed optimism with companies already demonstrating their ability to innovate in the face of this new normal. We hope these findings inspire small business owners nationwide to identify new and better potential strategies to help them grow along their entrepreneurial journey.