With 2021 fast approaching, anyone who is owning a business or planning on starting one should inquire as to what will the economy of the world looks like. What will be the challenges? What new advantages will there be? How will the economy behave and where are the best places to invest? All of these questions are crucial for the well being of your company and yourself. Knowing the future is essential if you are to prepare for it. It is for this reason that we have made this article on changes business owners should expect in 2021 and how to best prepare for the challenges ahead.
New cities arise to provide changes business owners should expect
We are entering a new decade, and with it, we are also welcoming new financial capitals of the world. This is mainly due to the oversaturation of the traditional economically important and advantageous cities. For example, people are generally moving away from New York City, the famous city of opportunity for people around the world. This is because, in NYC, the same as in Paris, LA, or Tokyo, people are seeing two trends.
The first of two trends stagnation of gains. People are simply seeing less growth in these places. Where before there were no ceilings to be expected once you enter the cities of skyscrapers, now the limitations are starting to appear. The dynamic growth of these cities had slowed down to be replaced by more rigid structures. Companies have “settled in” so to speak and there are now slower lanes for anyone going in.
At the same time, prices are growing. Thousands of dollars for a one-room apartment in San Francisco or Tokyo is a story that is happening in almost every major economic center of the world. Rents are going sky-high with unreasonable speed. Without higher wages to support this, a simple cost to benefit analysis by anyone seeking a job shows them that they have to leave. It is simply not sustainable to stay in these cities, and that is definitely among the changes business owners should expect.
However, other economic centers will rise in 2021, and in the following decade, and giving outs of Riyadh customs clearance are sure not to stop. With a lot of “second-tier” cities rising to the occasion, business owners should look to cities with reasonable rent and good for startups in order to position themselves well in 2021.
Selection is getting tighter
Now, normally you might think that we are talking about the selection that is happening from the perspective of the business owner. After all, that is the trend set out by the previous decades. However, people moving via relocation companies in Jeddah to their new jobs are the ones with real power in 2021. This is because, more and more, people are coming to terms that there are no longer any long-term jobs. On average, you can expect an employee to stick around for around 4 years. This is because people are getting into the pattern of constantly improving themselves before finding better jobs and then continuing to acquire new skills in order to find better employment etc. Aka, the learn-work-learn pattern.
This means people have more mobility. Someone that has just moved to Seattle might already plan on working in Edinburgh. In a world where job skipping is no longer a stigmatized thing, you should expect your employees to be mobile and to seek opportunities for employment at other places as well. If you are trying to prepare for these changes business owners should expect in the job market, try finding all the ways you can improve your worker retention in your businesses by granting them various (not necessarily monetary) benefits.
More options for entrepreneurship and investment
As a business owner ready for moving to Jeddah, you should be aware of just how many new investment opportunities there are appearing all around the world. This is due to the prevalence of the internet and access to technology, though we will also talk about this particular topic latter. Generally speaking, entrepreneurship is now happening on a lower scale, between just a few people who are more often than not, freelancers. This is a natural extension of the gig economy. In 2021 this will only grow. That points us towards a more dynamic investment market in 2021.
Sustainability and technology
If you had any experience with freight forwarding companies in Bahrain, you will find that logistics are a lot easier to deal with than before. This is because technology and connectivity are getting better pretty much everywhere. Such advancements are facilitating better logistical capability. Furthermore, they are opening chances for cooperation across the globe. In 2021, we can expect technology to have a huge impact.
Staying ahead of technological advancement is sure to provide you with the best chances of success in 2021. However, that should not be your only priority. The world seems laser-focused ongoing sustainable as fast as possible. Being green is a priority for many big companies, and has been for some time. But, this is now also true for a lot of growing businesses as well. Having ecological responsibility and carbon-neutral, cruelty-free business is seen as key when having Millenials as clients.
Concerns over pandemic aftermath
Finally, we should turn towards the obvious negatives to await us in 2021. IMF concerns over the drastic slowdown of economic growth in advanced economies are being heard loud and clear. You can expect several effects of the pandemic:
- A new normal – companies will turn towards working from home models and technology in order to offset the long-term consequences of the pandemic, aware that the end of the pandemic is definitely not among the changes business owners should expect anytime soon.
- More short-term contracts -People are not having much of a chance for solid employment at this time, as companies cannot guarantee any benefits in such a volatile environment.
- A spooked economy – The whole economy is sure to grow a lot slower as it is batteling insecurity over the future.
So, what to expect?
These are the main changes business owners should expect you should expect. More dynamic workforce. Increasingly irrelevant old economic centers. Progress of technology and the worry over the pandemic that seeming has no end.
