In the shadow of inflation fears and daunting economic forecasts, 2023 may seem a gloomy year for small businesses. Yet, the undercurrents of American consumer behavior tell a different story. Skynova, an invoice tool provider, recently conducted a study focusing on customer search trends for small businesses across the United States. The study reveals a compelling landscape, casting a spotlight on the resilience of small businesses and their inherent role in the American economy.
A Tale of States and Cities: Supporting Small Businesses
The study, spanning from 2019 to 2022, analyzed search volume data across all 50 states and major U.S. cities, unveiling some fascinating insights. First, the eastern half of the U.S. emerged as a strong supporter of small businesses, with states like Vermont, North Carolina, South Carolina, Georgia, and Colorado leading the way. Interestingly, Colorado was the only exception among the top five states, representing the western U.S. Yet, the Midwest and West demonstrated a keen interest in shopping small, particularly in Texas, which housed six of the top 25 cities by search volume, including Dallas, Houston, Fort Worth, Austin, San Antonio, and Arlington.
Changing Tastes: Popular Small Business Categories
As the geography of support was laid bare, the study delved into the types of small businesses that captured America’s interest. Etsy shops topped the list in 2022, reflecting the nation’s growing appreciation for handcrafted and personalized products.
The clothing category was another hotspot, though it revealed a dichotomy: the interest in clothing boutiques increased, but the search for big fast fashion brands surged even more, rising by 70% since 2019. This duality raises questions about the balance between sustainability, fashion preferences, and price sensitivity.
State and City Preferences: A Closer Look
When examining the most-searched small business categories by state, home improvement contracting stood out in seven states, ranging from Connecticut to West Virginia. The prevalence of this category highlights the importance of localized services.
By narrowing the focus to city preferences, home renovation services claimed the top spot in six major cities, including two in California and two in Florida. This reveals an intriguing variation between states and cities in preference for more specific services.
The Timeline of Hope: Small Business Searches Over Time
The heartening news continued as the study tracked the quarterly comparison of searches for small businesses. A 267% increase from 2019 to 2022, and a 33% uptick over 2022 alone, underlined a robust and growing interest. While there was a dip in search volume in February, it was followed by a near-doubling over the subsequent two months, possibly reflecting the government reopening after a prolonged shutdown.
A Bright Future?
What these trends signify is a steady growth in demand for goods and services produced by small businesses. The resilience of interest in small businesses like Etsy sellers and home improvement contractors, even amidst economic uncertainties, offers a silver lining.
The narrative painted by this study is not merely about numbers and percentages. It is a story of local economies, community preferences, the ebb and flow of trends, and most importantly, the enduring spirit of the small business sector.
In the face of potential recession and inflation, this data may well be a beacon of hope for small-business owners across the nation. It’s a testament to their relevance, adaptability, and an indication of a future that might not be as grim as some economic indicators suggest.
In the end, the American fascination with small businesses, from handcrafted Etsy products to home renovations, underscores a belief in the creativity, innovation, and personal touch that small businesses bring to the marketplace. It’s a heartbeat that continues to pulse strong, resonating with the values and needs of a diverse nation.
