State of the world and five emerging trends that will impact your business

Have you noticed any new trends lately? Staying ahead of the game calls for constant monitoring, scanning and evaluation of your operating environment. Indeed, today’s entrepreneur needs to have a sharp nose for winds of change and understand how the undercurrents are likely to shape his/her enterprise. Granted, if you have been in business for a while now, you might have noticed how things have changed markedly over time. Some of those changes have been subtle, happening in the shadows. Others, however, have been very pronounced, and those who haven’t taken note are simply lethargic. All taken together, the undeniable conclusion is that change is happening all around us. Perhaps, the only question at this juncture is: is your business ready for the future?

But before we take a leap into the future, I would like us to take a step back and review, briefly, how we got here. Many might not have realized it yet. The COVID-19 pandemic was a major watershed moment world over, and it greatly impacted all aspects of personal lives, as well as the way we do business. It is only now that we are starting to see the shockwaves of the pandemic. From supply chain interruptions causing serious shortages, mounting inflation resulting in high cost of living, and job losses leading to reduced productivity amongst other factors, the pandemic has had a far-reaching effect than many recognize. Then before the world could breathe a sigh of relief after containing the virus, Ukraine and Russia got sucked into a war, and in the process, adversely impacting food security and international trade. And the stream of catastrophic events didn't end there. Recently, the Federal Bank of the United States of America increased its interest rate, causing havoc for the emerging markets through capital outflows and currency depreciation.

As you may have seen, the events have been largely spontaneous and depending on where you are in the world, they seem unrelatable. Though, in truth, actions taken in far distant places have the potential to impact your business. Whilst calls for globalization and international cooperation are slowing down as countries look inwards, we are still highly interconnected. Evidently, the business environment remains as fluid as ever. But what do all the above events and others not mentioned portend for your business? Well, I managed to map out five trends that are not so obvious, and I believe every discerning entrepreneur needs to take note of them even as things continue to evolve rapidly.

1. Economic Nationalism
If you have been following global political news lately, you may have noticed, across various countries, the increased agitation for economic policies that benefit local players at the expense of trading partners. Essentially, globalization is dying, albeit slowly. Seemingly, no one wants to trade with the other anymore. Countries are increasingly focusing inwards and imposing trade barriers on others. The world is no longer a global village. And if you are in doubt, consider the slow rollout of African Continental Free Trade Area (AfCFTA) agreement as signatories remain hesitant owing to fears of trade imbalance and domination of local markets by foreigners. Because of the rising economic nationalism, startup or legacy businesses hoping to go global will have to rethink their expansion strategy. It is still possible. However, you must cross several loops and hoops to access foreign markets. But even if you succeed, there is no guarantee that the locals will welcome you with open arms and embrace you affectionately. Positive attitudes toward home-grown brands have been crystallizing fast and becoming potent as time goes by. So, select your foreign market carefully. A new reign of business unusual is here with us.

2. Digital Transformation
The future is digital! This is not an entirely new trend, and you are even probably aware of the fact. Even so, the truth is that many businesses that are yet to make the transition. Well, I’m here to inform you that you don’t have much time left because the transformation is happening fast across industries. Digitalization has been proven an effective means for firms to adapt to rapid changes in their markets. Maybe the big question lingering in your mind right now is: how can you incorporate digitalization into your business?

There are several ways that your business can tap into digital transformation to accelerate its performance. They include smart products & services, digitized processes, platform-based business models, and digital ecosystems. Whatever digital model you decide to pursue, digitalization confers many advantages including reduced costs, enhanced customer value, being more agile and lastly, creating new revenue streams for your business by serving new markets. Remember, when initiating digital transformation in your organization, all parts of your business strategy should be well aligned to allow you to achieve growth faster. Don’t become obsolete, go digital!

3.The Rise of Generation Z
A revolution is underway, and the voices are growing louder by the day. The rise of generation Z is already causing disruption in our already volatile business landscape, going by the trends I observe from time to time on our local public square: Twitter. I don’t know about you, but from my vantage point, it is largely an issue of clashing generational ideologies on virtually everything. From working style, leisure, to relationships, and everything in between.

In general, generation Z tend to be outspoken, digitally savvy, shrewd consumers, and politically progressive, just to highlight a few traits. Even so, these core characteristics may vary depending on geography and culture. But the bottom line is: they are a new force to reckon. They are upending the old ways of doing things. That is why your organization needs to be conscious of them. Draft responsive human resource manuals at the workplace as well as marketing strategies if they constitute the base of your target market. Going to war with them will be a fool’s errand.

4. Privacy
There are days when marketing executives could buy contact lists and barrage recipients with promotional messages. That era is long gone. Privacy is now a top concern for the people and government. Today, you need to ask for consent before sending out your email campaign, assuming that you obtained the email IDs legally. Closer home, the office of the data protection commissioner is now fully operational and digital lenders are among the first businesses to get a taste of the new dispensation of data laws.

Further afield, the General Data Protection Regulation (GDPR) by the European Union (EU), Google’s decision to end third-party cookies in chrome and Apple requiring app developers to request permission for tracking are just some manifestations of concern for individual privacy. The stakes have never been higher. For purposes of market intelligence, most businesses do handle customer data. Thus, to manage the risk of costly lawsuits, draft a data handling policy that is well aligned with both local and international laws as well as best data management practices. Always keep your eye open for new data rules to avoid finding yourself on the wrong side of the law because at the end of the day, ignorance is no defence.

5. Sustainability
It is no longer a secret that climate change effects have long been with us. Even though most people know that we should conserve the environment sacredly, mitigation efforts remain sluggish. Initially a noble concept, capitalism is now a bane for humanity. Countries and companies bearing the greatest responsibility are only taking half-hearted actions to reduce their carbon footprint or pollution. Others are refusing to take decisive action.

The extreme weather conditions witnessed in different parts of the world, like Pakistan, Nigeria, and the United States, are telltale signs of how dire the situation has become. Here in Kenya, drought is ravaging the northern parts, causing unimaginable suffering. While many are tired of hearing the clarion call for sustainability, the sensitization should not cease, and non-governmental organizations allied to sustainability initiatives cannot do this alone.

Climate change mitigation requires everyone to play a role in climate change adaptation. Consider drafting a sustainability strategy for your business. Start with simple, practical steps like assessing and reducing your energy use and carbon footprint and educating your consumers and clients about sustainability. Think about it. We have no other home, this is it!

Final Thoughts
The world right now is in deeper turmoil than ever before. War in Ukraine, hurricane Ian, and religious extremism are just some of the events dominating our conversations today, and tomorrow new issues will come up. Certainly, global events have the potential to disrupt your business. That’s why you need to be in the know, all the time. But apart from keeping an eye on happenings around the world, you also need to watch out for the five trends discussed above. Even so, the business environment is always fluid and volatile. As we move ahead, more trends will continue to appear. So, stay alert and keep up with the emerging trends. Don't be found flat-footed. Change is inevitable. Keywords

SMD Consulting Associates; Digital Marketing; Content Creation; Digital transformation; Sustainability; Entrepreneurship; Latest Trends; Generation Z; Data Protection; Data Privacy; Marketing Strategies

Stephen Osomba currently serves as the Lead Partner, Communication & Marketing at SMD Consulting Associates where he helps SME clients deliver value by adjusting the solutions to each company's mission, product, strategy, and industry.