Juneau, Alaska (KINY) - Food from plants, growing economic dominance of Millennials and spending more time at home are trends that impact Juneau businesses.
Jennifer Adams of the Alaska Small Business Development Center was the featured presenter at the Alaska Business Roundtable luncheon.
The Center offers one on one business advice, an online tool library at www.aksbdc.org and workshops and webinars.
Only 20-percent of small businesses survive. Many fail in the first year of operation. The SBDC has operated in Alaska since 1986. They employ up to 15 people in Alaska. They serve 1,000 small businesses each year. There is no cost for the assistance and programs they provide.
SBDC hosts 3,000 people at various workshops each year. Most of the funding comes from the federal government.
The group had a hand in the creation of 624 new jobs in Alaska last year. They also assisted 146 new businesses last year. Clients were able to access over $16.3 million in capital last year.
"In Alaska businesses considered small employed 142,448 in 2018. The state had 71,841 small businesses last year."
So what is happening in the business world these days? More goods are being sold online. Last year 220-million people were online shoppers in the U.S. 52-percent of companies sold through a third party like Amazon. 67-percent of the buyer's journey is now done digitally.
Studies show 92-percent of Millennials are heavy video viewers. American's spend $30 million online each year while drinking alcohol. Men spent 28 percent more online than women. Millennials spend $600 billion per year in the U.S. They make 54-percent of purchases online. The purchasing power of Millennials will exceed $1.4 trillion next year.
Baby boomers have 83-percent of U.S. household ownership, and 42-percent of economic activity, some $7.6 trillion. They are working longer and spending more, start businesses and stay productive, maintain independence, volunteer and donate more and are growing in racial diversity.
Millennials will pass the number of baby boomers later this year. There are 84 million of them in the U.S. between the age of 19 and 37.
There is more interest these days in home remodels. The average home is 38 years old. An industry of growth is anti-aging and skincare products. The industry will hit $216 billion by 2021. 34-percent of dads now use personal care products to prevent aging.
A growing trend in industry and business is nap time. Studies show that 11 percent had an elevated mood, 10 percent improved interactions and 11- percent elevated alertness.
The color of the year is Pantone and is common in fashion, home decor, graphic design and product packaging.
Millennials spend 70-percent more time at home than the general population. The country spent $72 billion on pets last year. Products like smart-home pet devices like home cameras, genetic tests for pets, pet health and fitness tracking and mobile vet clinics, are expected to grow in popularity. Over 66-percent of all households have pets.
Pacific Rim flavor foods are expected to grow in popularity in 2019. Dining in is also more popular. Eco-friendly packaging is also popular. Another growth area is plant-based foods like burgers, pasta, wine and beer. More people eat at home because it is cheaper, less intimidating and less hassle. Breakfasts are more popular. 75 percent of consumers eat breakfast over five times more than they used to.
The top 10 ideas for start-up business include online coaching services, web development, online ad management, online education courses, subscription box services, tourism guidance, gadget repairs, flipping websites, vacation rental systems and social media management.
In Alaska, there is more nonbank financing of new businesses. Business owners are starting to skew to either end of the age spectrum, 74-percent of all exporters are small businesses and 20 percent of small businesses are minority owned.
Outdoor recreation sustained four times the number of jobs in Alaska than oil, gas, mining and logging combined. $7.3 billion was spent annually by consumers and employed 72 thousand people. Wages exceeded $2.3 billion and paid $337 in local and state taxes.
March 22, a Chamber after-hours social will be hosted by THC Alaska at 5:30 pm at Tracy's Crab Shack. Food, beverages and door prizes will be available.