6 Small-Business Predictions for 2022

However, the year was not a total failure. According to U.S. Census Bureau business formation statistics, entrepreneurship reached a new high in 2021, with more than 4.6 million applications for new businesses filed through October 2021.

And customers continued to support their local small businesses: According to an August 2021 NerdWallet survey conducted online by The Harris Poll, 40% of Americans were still making an increased effort to shop small and shop local as businesses reopened and pandemic restrictions eased.

So, what does the year 2022 have in store for small-business owners? Will supply chain issues be resolved? Will hiring increase? And what about business lending in the absence of two of the Small Business Administration's main COVID-19 relief programs?

With their predictions for the coming year, NerdWallet's business writers cover all of these topics and more.

1.Technology Helps To Close The Employment Gap

Tina Orem says: Small-business owners will flock to software that allows them to accomplish more with fewer employees. This could imply more tableside ordering and checkout technology in bars and restaurants, as well as more self-checkout options for retail customers.

Hillary Crawford: Restaurant QR code menus are here to stay, even if COVID-19 precautions fall by the wayside. Many restaurants have discovered that digital menus make it easier to update items and prices because they don't have to reprint the menu each time. They also allow restaurants to operate with fewer front-of-house employees.

Takeaway: Smart technological investments can help you alleviate the pain of staffing shortages without sacrificing the customer experience.

2. As Business Lending Increases, Community Banks Take The Lead.

Kelsey Sheehy: In 2022, small businesses can expect greater access to capital.

Banks reduced business loans in response to COVID-19, tightening lending criteria and even suspending traditional loans in order to focus on Paycheck Protection Program loans. However, as the economy and consumer spending improve, small-business loan approval rates will rise further, particularly for businesses that work with community banks and nonbank lenders.

That's good news for small-business owners who have survived nearly two years of pandemic-related restrictions and are ready to invest in new equipment or require working capital to expand in the coming year.

Takeaway: For your next business loan, consider community banks, credit unions, and online lenders.

3.This Is The Year Of The Physical Store.

Tina Orem: Brick-and-mortar small-business retailers will shine as consumers realize that going into the store or getting curb-side pickup is often faster than waiting days or weeks for deliveries from overburdened shippers.

Takeaway:To attract more customers, consider adding "buy online, pick up in-store" options to your e-commerce platform.

4. Customers Must Be Kept Informed.

Rosalie Murphy: Managing customer expectations will continue to be critical. With a supply chain crisis, inflation, and a labor shortage, what business owners can offer customers in 2022 will not be the same as what they offered in 2019.

Customers may accept longer shipping times, fewer product lines, and possibly higher prices, but it's critical to communicate those changes clearly as we move toward a new normal.

Takeaway:Set realistic expectations by communicating with your customers — in person, on your website, and on social media — about the challenges your company is facing and how they may affect the shopping experience.

5. Supply Chain And Hiring Issues Persist

Randa Kriss says Small businesses have struggled with supply issues, and relief is still a long way off. Business owners will need to figure out how to be creative and agile with their processes, whether it's by collaborating with multiple suppliers or attempting to streamline their inventory catalog.

Rosalie Murphy says Small-business owners who successfully hired new employees in 2021 should consider how to retain those employees in 2022. What changes can be made to attract new hires for those who have lost employees? Workers' expectations for better pay, benefits, and schedules may subside over time, but I don't believe businesses can count on that just yet.

Takeaway:Adapt to the current reality, as supply chain and hiring challenges do not appear to be going away anytime soon.

6.Some COVID Modifications Become Permanent.

Hillary Clinton: Takeout options will have to be built into the business models of new restaurants. While this is a given for full-service restaurants, it hasn't always been a consideration for businesses such as breweries, and canning or bottling lines can be costly.

Takeaway:Businesses that rely solely on in-person experiences may be vulnerable. Build online or to-go options into your business plan using e-commerce software so that your company can quickly adapt if external factors force you to close your primary business line.