DigitalOcean’s May 2023 research report, Currents, explores the impact of the economic downturn on innovation and how individuals are turning to side jobs and starting new businesses as disruption continues in the tech industry. Did. I found the following:
- Due to job cuts and a downturn in the market, many employees have become sole proprietorships by starting small businesses outside of their core business.
- Small businesses have weathered the economy, and despite changes due to the current economic climate, most small businesses remain positive about growth.
- Cost and security are important considerations when an enterprise chooses a cloud infrastructure provider. This is especially important for small businesses looking to keep costs down during a downturn in the economy.
- Enterprises are increasingly using artificial intelligence (AI) and ChatGPT, but many are still in testing and do not have usage policies.
Side jobs lead to an increase in SMEs
Fifty-five percent of respondents said their primary employment was full-time, and 22% reported running their own business as their primary source of income. However, more than half (52%) of respondents say they have other jobs on the side. Of those, 40% said they would undertake individual work, and 29% said they would start a new company that they wanted to scale.
Economic conditions influence how respondents feel about expanding their business. Of those who were recently laid off, 51% of him said fears of a recession and layoffs had influenced his idea of expanding his ideas, compared to just 16% of those who were not laid off. .
Those who were laid off were more likely to start companies they wanted to scale rather than take on individual jobs.
31% of small business owners are navigating the current economic climate and future prospects. It found that 31% of his respondents had made changes to their business to cope with the economic situation. However, 61% are optimistic about their business prospects for next year.
When it comes to financing, 68% of SMBs rely on Bootstrap to finance their business. Only 7% are using venture capital funding and 4% are using angel funding, creating a number of tech-based SMEs that diverge from the traditional venture-backed startup model. indicates that
Only 15% have raised in the last six months, but 27% plan to raise in the next six months and 20% have delayed funding due to uncertain economic conditions. I’m here.
Increased use of AI for personal and/or business use
The popularity of generative artificial intelligence (AI) solutions like ChatGPT has skyrocketed in recent months, with people and businesses incorporating these tools into more and more jobs. According to the report, 61% of his respondents expect to increase their use of AI/machine learning this year, up from 41% of him last year. Opinions about the rise of AI/ML tools are mixed, with 39% saying AI will make their jobs easier and 30% believing these tools are overhyped.
Specifically, 69% of respondents use ChatGPT for personal and/or business purposes. Of these, 62% say they are testing the solution, 23% are beginning to integrate it into their regular tasks, and only 13% say it is already part of their routine.
Over the past few years, the role and structure of small and medium-sized enterprises (SMBs) have changed significantly, largely due to technological advances and changing economic conditions. Tech professionals and entrepreneurs are increasingly challenged to take advantage of new technologies such as AI beyond his traditional 9-to-5 box. The result is a rise of creative entrepreneurs who are turning their ideas into side businesses, small businesses, and even startup scale.
These digitally-driven SMBs now exist in every industry and geography, fueled by the convenience and cost-effectiveness of cloud computing. Despite financial problems, these entrepreneurs are optimistic about their future.
sauce: digital ocean
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