Small businesses are envisioned to become the backbone of the local economy. Changing consumer attitudes, regulatory reforms and demographic shifts constantly create new space for new small businesses to grow and compete. To find growth opportunities for small business ventures Dubai Chronicle’s editor has researched the latest consumer trends and has pinpointed a few industries that currently hold opportunities for entrepreneurs.
Food Trucks
Mobile food business was unthinkable until a few years ago when the economy was perceived as constantly expanding. The very few mobile food vendors usually offered soft drinks and packed sandwiches. However, the growth of the food truck trend in recent years can be attributed to the meteoric rise of specialty food appetite combined with the need of food on the go.
Food truck companies usually employ fewer than four workers on average, and most operate a single truck. With lower overhead costs and greater flexibility than traditional restaurants, food truck operators find wide appeal especially when located in unserviced by fast food chains areas by offering gourmet meals at relatively affordable prices. Their popularity has been bolstered by a trend toward healthier eating and consumers’ ever-increasing desire for convenience.
An important details small business entrepreneurs should pay attention to is the pricing of the meals. They should price their culinary creations lower than the similar offered in regular eateries. Before all, food trucks are perceived by consumers as convenience eateries but not as luxury experiences.
Capital requirements in the industry are low compared with the rest of the food-services sector, making street vending a lower-risk pursuit than a brick-and-mortar restaurant. Still, municipality regulations constrain market entry.
Compliance with health and zoning laws designed for traditional restaurants can be burdensome for new entrants. Because the industry is so dependent on access to high-traffic urban areas, the local regulations determine the success of a small business going forward.
Pet Grooming and Boarding
A new generation of “pet parents” has fueled growth for businesses providing high-value, luxury grooming and boarding services. The number of operators in the Pet Grooming and Boarding industry is expected to grow. Due to the industry’s low barriers to entry, most of the small business are sole-proprietors who cater to local demand.
The rapid growth in pet services has been driven by younger, first-time owners who spend more on their pets than previous generations. Consumers generally view expenditures on their pets as essential and pet spending remains a constant share of consumer spending. As the disposable income is generally higher than before, more consumers are able to afford luxury services for their animals and consequently, Pet Grooming and Boarding industry revenue is expected to grow.
As chain pet stores and deparment stores increasingly compete with standalone establishments, small businesses in the industry should offer more luxurious accommodations and deluxe grooming to differentiate themselves.
Business Coaching
An increasingly competitive and complex business environment has boosted demand for professional training in recent years.
Business coaches typically are nonemployers who can easily enter and exit the industry with fluctuations in the economy. Forecasts for growth in corporate profits will likely enable businesses to invest in coaching for their employees.
Across many downstream industries, rapid globalization and technological change have necessitated the acquisition of new skills. Due to differences in communication styles and cultural attitudes, human resources professionals have paid close attention to the implications of this generational shift. This may drive demand for business coaching moving forward, particularly as younger people increasingly move into first-time leadership positions.
Improvements in technology will also continue to reduce overhead costs and expand the reach of business coaches over the next five years. Additionally, due to the industry’s low barriers to entry, rising demand will likely encourage new companies, especially sole-proprietors, to enter the market. As a result, intensified competition will push operators to specialize in a particular industry or carve out a niche.
