Many salaried men and women who tire of the eight-hours-a-day working-for-a-boss routine are mustering the strength to venture into their own business as soon as they have saved sufficient working capital to branch out on their own.
These days it’s easier to become an entrepreneur because of the availability of business finance from companies like Beyond Merchant Capital who offer working capital advances to small businesses that are able to achieve more than $10,000 a month in credit and debit card sales.
These financiers offer cash advances for working capital that are repaid from future sales, enabling businesses to expand much faster than could be achieved under the traditional method of obtaining business loans from banks and other financial institutions, and repaying them over several years.
But to achieve the type of fast business growth that would justify using such means of capital financing, entrepreneurs must ensure that the business sector that they are entering is one that shows high growth potential and a sustainable future.
Many entrepreneurs don’t ever have to make a decision on what business sector to enter. Their choice is determined by their own expertise. A software engineer will invariably launch a business in the tech sector, whereas a cook will be looking at the food and beverage sector.
However, many budding entrepreneurs will approach the selection of sector from a different perspective – they will try to determine which sector currently has the best growth potential and fewer barriers to entry, and then employ the expertise they need if it is not a field in which they have much experience.
So what are the sectors currently offering the best potential for business start-ups? That varies a lot from country to country. For example, CNBC currently lists Marijuana as one of the best industries in the US for starting a business because so many states in that country have recently legalised the sale of medicinal marijuana.
All around the world, various technology sectors – especially those focused on mobile services – continue to attract tech savvy entrepreneurs. But what are the more traditional sectors that have the best growth potential overall?
The business services sector accounts for around fifth of employment numbers and a quarter of GDP in most western countries. Many people who used to work for bigger companies tend to establish their own companies in the business services sector because they’re familiar with the work involved and may have identified where there were opportunities for the provision of new services.
This sector is vast and can be further classified into the following sub-sectors:
- Technical, professional, and scientific services
Those who provide consulting services that require expertise in subject areas like engineering, legal, architecture, accounting, computer systems, and other technical professions.
- Administrative services
This involves businesses that deal with providing manpower and other HR services to wide range of industries.
- Rental and property services
Businesses that lease equipment and vehicles belong to this sub-sector. Management of private properties and other real estate consulting services are counted under this category.
- Media and information services
These include the provision of internet, telecoms, and data management services to other businesses.
- Financial services
Those who facilitate transactions and provide financial consultation services belong to this group.
Not surprisingly, healthcare continues to be a growth sector across the globe because in most countries, the population is aging, and people need access to many types of support services aside from hospitals and doctors.
Among the opportunities in the healthcare industry that have been identified as growth sectors are:
- Selling of pharmaceuticals, equipment, preventive medicines, and diagnostic services
- Providing care services for the aged
- Offering health insurances
- Selling software that can help in healthcare management of bigger businesses
This sector is one that is tied to the prosperity of economic cycles – in some cases boom and bust cycles – so choosing the right timing to enter the property sector is very important. Locations where there are commercial or residential occupancy demands offer the best opportunities for new business establishment.
Aside from the purchase and leasing of properties, there are also opportunities for businesses offering management and maintenance services. And the popularity of Airbnb and similar platforms is making it easy for property owners to get started in the property sector especially in vacation destinations where there is always demand for short-term rentals.
The transport industry has a relatively low barrier for new players to penetrate. Anyone who has a license to drive a truck and has the money to lease a truck can be a player in the freight industry. Subcontracting to bigger companies to deliver their goods is a way that many small truckers have started their businesses.
Those who have private cars can now be involved inthe transportation business, thanks to the disruptive technology of Uber and various other private taxi apps that have sprung up around the world.
Assistance for Start-ups
Most states or provinces have their own ways of encouraging entrepreneurs to be part of growing SME industries. They produceguides that will help interested parties set up their businesses and often offer free advisory services to help new businesses decide whether they want to establish a company, a partnership, a trust, or work as a sole trader.
In sectors relating to healthcare or social services, there are often many government-backed grants available as well as non-government funding programs that can help finance a new business.
There’s no correct, right or best sector in which to establish a new business.Much depends on the interests, experience and location of the would-be entrepreneur and the amount of capital available to launch the business. Depending on the government’s economic direction and enforcement of regulations, a lagging industry can become a growth industry tomorrow, and vice versa.
Ultimately, whatever sector is chosen in which to start a new business, the success of the business will depend on the ability, determinationand dedication of the business owner to succeed in their chosen field.