Portuguese
Micro and Small Enterprises (MSEs) are an essential part of the economy, representing the majority of businesses in many countries and generating a significant number of jobs. However, they face financial limitations and have a lower capacity for investment in technology, processes, and innovation, which can hinder their ability to compete in the market.
The adoption of innovative practices allows companies to improve their business management and become more competitive. A company’s innovative performance shows a direct correlation with its competitiveness, positively reflecting on the market in terms of the development of products, services, and processes in an effective way. Companies that adopt innovations perform better than those that do not, becoming stronger competitors than the latter.
To overcome this challenge, entrepreneurs need to be creative and find innovative solutions to complex problems. Additionally, they must be able to take calculated risks and make difficult decisions. To be successful, entrepreneurs need to stay constantly updated on market trends and best management practices.
In this context, several trends are emerging, outlining a new path for MSEs seeking to innovate and stand out in the market. Among the key trends are the following eight, described below.
“Always with a Plan B: Adaptability of Consumers and Businesses.” With difficulties in securing conventional products and services due to supply chain shortages, consumers are increasingly adopting a “Plan B.” In response, companies are reinventing themselves by offering alternative options and new strategies to ensure that customers continue to have access to the desired products and services.
“Climate Agents: The Power of Sustainable Consumption.” Environmental activism and low-carbon lifestyles are becoming permanent, and consumers now expect brands to take a clear stance on the climate emergency. To cater to these “Climate Agents,” companies need to offer products with carbon footprint certifications and transparent labeling, enabling informed and trustworthy choices.
“Digital Seniors: From Resistance to Autonomy in the Online World.” Forced to adapt to technology during the pandemic, older consumers have become more comfortable and independent in using digital channels for shopping and services. Now, companies have the opportunity to adapt their platforms to meet the needs of this growing and increasingly engaged online audience.
“The Wellness Revolution.” The pursuit of both physical and mental well-being will continue to gain momentum. Products that promote self-care, mental health, and balanced nutrition will be in high demand. Brands offering personalized solutions, such as supplements tailored to individual needs and integrated health experiences, will have a notable competitive advantage.
“Digitalization and the New Consumer Era.” Digital transformation and the use of artificial intelligence remain central themes. Companies that do not embrace digital technologies risk being left behind. Digitalization goes beyond e-commerce; it includes automating internal processes, using data analytics to understand consumer behavior, and implementing AI-driven customer service solutions.
“Focus on Customer Experience.” In a competitive environment, customer experience will become the new battleground. Brands that dedicate themselves to understanding the individual journeys of their consumers, using data to offer personalized and relevant experiences, will hold a privileged position. The concept of omnichannel commerce will gain prominence, allowing consumers to seamlessly transition between online and offline shopping, creating an integrated and cohesive buying experience.
“Old Products, New Owners: The Growth of Second-Hand Commerce.” The current trend is to save money and prioritize experiences over simply owning goods. Second-hand commerce, peer-to-peer marketplaces, and “recommerce” are expanding as consumers seek sustainability and exclusivity, breaking the stigma around purchasing used goods. Companies can benefit by investing in the circular economy, with initiatives like recycling, rental, and resale, creating value while contributing to the environment.
“In Search of Self-Love: Valuing Individuality and Authenticity.” Acceptance, self-care, and inclusion are at the heart of consumer behavior as people seek self-love. They prioritize their happiness and comfort, looking for products and services that reinforce their identity and promote physical, emotional, and spiritual well-being. To connect with these consumers, companies must offer experiences that deeply resonate and add value to their lives.
It is also worth mentioning the incorporation of artificial intelligence (AI), which emerges as a crucial trend in both the short and long term for MSEs. AI not only presents enormous innovation potential but also offers tools and solutions that can profoundly transform the operations of these organizations, enhancing their competitiveness in the market. The automation of daily tasks provides a unique opportunity to optimize processes, enabling companies to save time and reduce operational costs.
In conclusion, the trends identified above reveal a significant transformation in consumer behavior, driven by technological, economic, and social changes. Consumers are increasingly aware and demanding, seeking innovation, sustainability, and personalized experiences.
Silvia Della Matrice has a Master’s degree in Administration and innovation specialist from SEBRAE/SP (Jundiaí)
Further reading:
de Vicente Bittar, A., & Di Serio, L. C. (2023). Do innovation policies support micro and small enterprises to overcome barriers? Innovation & Management Review, (ahead-of-print). https://doi.org/10.1108/INMR-12-2021-0234
Angelo, E. C. (2024). Innovation and its influence on the competitiveness and longevity of companies. Revista Tópicos, 2(10), 1-15. https://zenodo.org/records/11517178
