From 2023 to 2024: Emerging Trends
There are very few common rules in entrepreneurship because each entrepreneur stands in a new stream. But the one commonality is that nearly all billion-dollar entrepreneurs started on an emerging stream, i.e., an emerging trend, and executed the smart strategy that helped them dominate the trend and build their unicorn. This includes billion-dollar entrepreneurs from Sam Walton (big-box trend) to Brian Chesky (Internet 3.0).
Here are 5 trends from 2023 to 2024 that will affect entrepreneurs and help make fortunes.
#1. Artificial Intelligence (AI).
Obviously, AI is the hottest trend of 2023. But how, and where, will finance-smart entrepreneurs gain from AI? Although AI has been around since 1956, the takeoff of ChatGPT in the last year has taken AI from the emerging stage to the growth stage. Unlike the PC and the Internet, product development in AI is capital-intensive and data-intensive, so corporations will be heavily involved in AI product development and make the strong stronger. But the field is wide open to entrepreneurs in the implementation of AI products. Implications for entrepreneurs:
· New ventures in AI product development are more likely to be VC funded, like the medical and biomed industries. And after the product has been developed and proved, they are likely to be sold to a large corporation. But AI will be wide-open for finance-smart entrepreneurs using AI to help their customers get a competitive edge by developing the right platforms.
#2. Sustainability.
Skepticism of Wall Street’s forays into environmental, social and governance (ESG) investing may be justified given the problems in definition, measurement, and a focus on financial returns rather than on real climate change. But disasters, such as the fires and floods of 2023, may be converting some of the skeptics. If not, their insurance rates may convince them. Implications for entrepreneurs:
· Musk has shown how entrepreneurs can profit from ESG. Find solutions that offer real solutions.
#3. Supply Chain.
The supply chain seems to have changed with the pandemic and China’s belligerence. Even Apple is heeding the call. Implications for entrepreneurs:
· Move fast to countries around the world that can benefit from this trend, including India, Vietnam, Mexico, Africa, and Latin America.
#4. Remote Work.
Employees want the freedom of the pandemic to work from home. Employers want the control of the office. Smart employers will tighten the leash and let go of the ones who want their independence. That is the same reason why many corporations do not like to hire entrepreneurs who are too used to their independence. Implications for entrepreneurs:
· Develop opportunities to increase remote-work productivity and monitoring for employers.
· Remote-work employees will find that they are competing with global employees who are willing to work for global wages.
#5. Financial Turbulence.
There are too many short-term issues, but the one key long-term issue that did not blow up in 2023 was the dollar. Given the issues with U.S. budget deficits and trade deficits, the strength of the dollar is a continued miracle – except for the fact that there is no good currency alternative. But many are trying to replace the dollar and will not stop trying. Implications for entrepreneurs:
· Timing can never be predicted accurately. Make sure you have a Plan B in case the dollar tanks, as America’s enemies are doing their best to make that happen. By the way, so are America’s politicians.
MY TAKE: Forecasting about the future is hazardous. But the prepared will benefit. There are many issues that can explode in 2024. Let’s hope they are good explosions. Happy New Year.
