The rise of the side hustle among 2021 trends for SMEs

The winding down of COVID-19 support packages, introduction of new government and private-sector incentives, gradual resumption of business travel, and the rise of side hustles are among changes that Australian and New Zealand SMEs can expect in 2021.

Small businesses are already preparing for what they will do once COVID-19 support packages such as JobKeeper finish during the first half of 2021. They are now looking to recently announced public and private-sector incentives such as small business banking packages or open tender exemptions for Australian federal government contracts as new avenues to maintain business momentum. Seeking and capitalising on new opportunities to maintain business agility is also leading to a rise in microservices and side hustles to meet emerging product and service demands.

Digital solutions

Up to 70 per cent of organisations are now prepared to invest in technology solutions to speed up the recovery process.

Many SMEs have already adopted digital solutions and hybrid business models to fast-track growth and secure resiliency in the disrupted market. Automation is proving invaluable in the recovery process with its adoption helping organisations achieve a 30 per cent increase in overall productivity.

We will see even more SMEs embrace digital commerce to achieve new capabilities such as online sales. Others are using digital solutions to add side hustles and encourage new income streams; for example, more restaurants are also offering takeaway and home delivery services as a permanent extension to their business, while some corner stores are adding parcel delivery services. This creates more options for people to shop locally and helps SMEs to fill gaps in supply chains.

Business back on the road

Another big change for SMEs will be the adoption of responsible travel, with more onus on SME travel and accommodation providers to provide COVID-safe travel. There will also be a greater responsibility on SMEs that require employees to travel to ensure their health and safety while travelling for work.

To overcome the challenges and accommodate the needs of the post-COVID-19 world, automation will become an essential, not an extra for SMEs. As businesses maintain hybrid remote working models and anticipate other disruptions in 2021 and beyond, the role of automation will grow. This is particularly true for small businesses that need to either support remote work, take advantage of new government contract incentives, or develop side hustles to boost their income and resiliency.

The emergence of the digital business environment is expected to increase pressure on SMEs to manage budgets in real time, increase compliance and eliminate errors, especially when they need to demonstrate value when vying for and working on government contracts, or applying for business support packages. Already, 38 per cent of Australian companies are actively working to automate key expense and invoicing processes.

SMEs are the engine room of the Australian and New Zealand economies. In the new business environment, digital automation will fuel the operations of SMEs and empower them with more capabilities to gain real-time business insights, improve financial reporting, and achieve innovation that will help them drive growth and lead economic recovery.

Fabian Calle, Managing Director – SMB, SAP Concur ANZ