Top 5 SME industries in 2022

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Best SME industries

 A whole new world of opportunities awaits SMEs that aim to disrupt business

The pandemic disrupted businesses around the world in many different ways. However, small and medium-sized enterprises (SMEs) felt the impact the most, with several of them closing their doors temporarily or for good, while some saw exceptional growth. Today, many new business sectors are coming up and are being designed to meet evolving needs, giving SMEs more market opportunities to explore.Shot,Of,Happy,Young,Man,Working,On,Desktop,Computer,In Related article: 6 Biggest Retail Trends in 2022

SMEs are the core of any economy

SMEs play a crucial role in delivering inclusive globalisation and growth. Enabling them to adapt and participate in digital transformation is essential for boosting economic growth. These companies also have an indispensable role in achieving the United Nations’ Sustainable Development Goals (SDGs) by promoting inclusive and sustainable economic growth, providing employment, promoting sustainable industrialisation, and fostering innovation.

SMEs mix innovations

As seen during the pandemic, SMEs are disproportionately affected by market failures and barriers in the business environment. Their contributions also depend on their access to knowledge networks, finance, training, and infrastructure.

According to a report published by the Organisation for Economic Co-operation and Development, SMEs contribute to value creation by adopting innovation generated elsewhere, adapting it to different contexts through incremental changes, and supplying new or niche products that respond to diverse customer needs. They also contribute by serving locations that do not have a large enough scale to attract more prominent firms.Multiracial,Group,Of,Young,Creative,People,In,Casual,Wear,Meeting Related article: How the UAE powers the SME recovery

SMEs foster local communities and build globally

Globalisation has increased the importance of cross-border collaboration in innovation – both in obtaining ideas, finance, skills, technologies, and delivering products and services in different markets.

 Here’s where SMEs are seeing the most growth

1. Sustainable products and clean-tech marketsA,Woman,In,Her,Garden,,Water,With,A,Green,WateringSMEs are vital to the efforts to achieve environmental sustainability. Their participation in the transition to more sustainable production and consumption patterns is essential for green economic development. The green transition also offers business opportunities for SMEs as critical suppliers in green goods and services, eco-friendly supply chains and in developing clean-tech markets.

For example, the renewable energy market is gaining traction today. The U.S. Centre for Climate and Energy Solutions highlighted that:

 Renewable energy is the fastest-growing energy source across and is projected to see a 45% rise globally by 2040, creating a ripe market for SMEs to explore.

 

Related article: 5 Ways E-commerce can be More Sustainable  

2. E-commerce and online food deliveryOnline,Payment,man's,Hands,Holding,Smartphone,And,Using,Credit,Card,For

 From e-commerce to technology, numerous industries are growing worldwide. Some other upcoming SME growth sectors globally include the food delivery market. According to the U.S.-based NEXT Insurance, by 2025, the online food delivery industry is projected to grow by nearly 20% to reach $200 billion in annual sales.

 3. CybersecuritySystem,Security,Specialist,Working,At,System,Control,Center.,Room,Is

Several SMEs are also exploring the cybersecurity services industry as its demand has skyrocketed over the last two years, with virtually everyone spending their time online. Data breaches can cost organisations a lot of money and result in identity theft. Therefore, from IT consulting solutions to providing help after a security breach, SMEs are looking to capture their slice of this burgeoning market.

Given the low cost of entry compared to traditional channels, online platforms have never been easier to set up and are thriving. From social media influencers to data collection, going digital has presented countless opportunities for businesses to find new ways to make a profit.

 4. Gaming and virtual realityWoman,With,Glasses,Of,Virtual,Reality.,Future,Technology,Concept.

Another fast-growing business is gaming and virtual reality, which can be used for retail, education, medicine, and employment training applications.

 5. ShippingFemale,Seller,Worker,Online,Store,Holding,Scanner,Scanning,Parcel,Barcode

Meanwhile, the shipping industry has seen phenomenal growth over the last two years. The industry has seen success across the board, from long-distance freight truckers to local moving companies transporting raw materials, manufactured products, and distributing goods.

 SMEs are not just shifting to digital – they are racing towards it with urgency. These businesses are signaling in a new global economic landscape that is here to stay.