Some big companies seem to have grown a conscience after the Business Roundtable announced members will focus not solely on lining their shareholders’ pockets. They also said that they will be investing in employees, dealing fairly with suppliers, and working to protect the environment.
Entrepreneurs are bringing in purpose-driven leadership with their new age Startups
Many smaller companies and startups have goals that are already striving toward with remarkable motives. As the New Year comes closer, start-ups and marketers need to understand how entrepreneurs are bringing purpose-driven leadership into the mainstream.
Here are five key trends that will drive purpose-driven startups forward over the next 12 months:
The rise of the Millennia’s
More than 25 percent of Millennials are already in management roles, and two-thirds aim to be in positions of leadership a decade from now. Millennials might not be starting businesses quite as often as their parents, but they’re grabbing key positions in new businesses with the use of technology, ensuring they are well-prepared to reshape our business culture for years to come. With better skills and knowledge young people are emerging as powerful leaders and strategic thinkers in their own right.
The most important aspect of young workers is that they bring different perspectives. Millennials are more socially conscious, creative, and strongly purpose-driven when compared to past generations. Research suggests they’re hanging on to those guiding principles as they grow into leadership roles.
Cashing in on diversity
Even some of the world’s developed countries for entrepreneurship are still not providing enough support to women, POC, and other minority entrepreneurs for investors. Most of the female-owned startups receive just 2% of all investor capital even though women-founded companies generate twice the revenue per dollar of investment as companies founded by men.
This will take time to correct, but there are some promising signs of change. There’s plenty of proof that diverse life experiences help leaders unlock new ways of doing business, and find more creative solutions to the problems they face. It’s almost inevitable that the boom in women- and POC-run companies will change the business community, and improve society as a whole.
Also Read: 10 Ways to Boost Social Media Presence of Your Startup
A better approach to AI
AI and automation are finally bringing some change in the business mainstream. According to a survey performed by Deloitte, 68% of companies are already automating tasks once done by humans, saving time and improving efficiency but also risking their relationships with both employees and customers. Everyone likes affordable, smart, and quick services, but creates tension when efficiency also evolves into losing their jobs to a machine.
This problem in the economy creates opportunities for new businesses, which are well-executed to embrace machine learning and automation without alienating an existing customer base. The best startups will find ways to deploy AI in the service of a bigger vision, unlocking new strategic gains while injecting real soul and purpose and bringing a sense of humanity and meaning into their brands and business models.
Learning from the gig economy
The gig economy is a market where employees are hired for temporary positions. This was supposed to turn us all into entrepreneurs but in fact, it has left many of us overworked and stressed out as we bounce from one stopgap to another. The tightening labour market and intense work culture have left many freelancers to scour for better working conditions and looking for better opportunities. This has created an opening for startups to find a middle ground, giving employees the flexibility and independence they crave but also treating them like human beings.
Over the next year, we’ll see more startups thinking creatively about how to staff up in ways that align with their broader purpose and keep their employees happy. It will demand a genuine rethinking of the meaning of workplace satisfaction to create purpose-oriented businesses that employees are proud to be a part of.
No more Locations
Small businesses used to thrive or die depending on the locations they are positioned in and the foot-traffic they could get, but these days many startups mainly exist online. This new online platform of start-ups doesn’t matter where they are based or even where their leaders and employees are based. That brings both opportunities and challenges which will arise as a trend from which purpose-driven businesses are bound to benefit. To overcome the challenges, these companies have to rely on less tangible factors like identity, personality, and branding to make an impression and build customer loyalty.
Online entrepreneurs are well-placed to create the flexibility that consumers demand and founders who put purpose first will find it easier to build memorable brands that their customers are proud to associate themselves with.
Putting purpose first in 2020
Although we live in turbulent times in which even the biggest companies are seeking to bake purpose into their brands. Purpose-driven companies are outperforming the financial markets by 42%, and that trend won’t change in 2021. But we also live in a world in which consumers are sharper than ever, and increasingly wary of insincerity by major corporations can easily backfire.
The good news is that while changing an established company’s corporate culture is difficult, startups are far intelligent, and it’s possible to inject real vision into their business strategy from the beginning. That will give small businesses and startups a critical advantage over the next 12 months. As long as the entrepreneurs and founders are brave and creative enough to aim high, their startups will develop a real and meaningful vision, and put purpose at the centre of their strategy for growth.
To meet the expectations of startups, Digital Presence Today is keeping up with every day updates and is helping entrepreneurs bring meaning into their brands and business models. We help develop a real and meaningful vision through digital marketing solutions. To know more visit www.digitalpresence.today
