2023 is shaping up to be a challenging year for businesses globally, impacting all industries and markets. Here we will discuss what startups will continue to be popular in this volatile market.

Current Market 

Although 2022 was a challenging year for some sectors and stocks, 2023 is set to be an even greater period of volatility as the world struggles to get control of rising interest rates and inflation.

News of an impending recession is not all doom and gloom, and some have looked for avenues to take advantage of the volatility. For instance, in the face of a strong dollar, some forex brokers and traders use CFDs to speculate on both market rises and downturns.

The United States Federal Reserve has raised interest rates steadily over the past years, which has had two effects, firstly, inflation has risen to its highest level in forty years, and secondly, the strongest dollar in twenty years. These impacts are also felt in virtually every sector, including finance, commodities, and investing.

Despite growing recession fears that are still reasons for optimism, new and rapidly evolving sectors, such as generative AI startups, are taking off at a staggering pace. Here are a few startup ideas that will continue to be popular in the coming months and years.

Online Freelance

With the freelance boom well and truly here, the room for innovative marketplaces is also expected to grow. Although some sectors, such as tech, have seen significant job cuts in the last few months, companies are expected to rely more and more on freelancers to fill skill needs.

There is also growth expected for independent business owner platforms, which provide services for virtually every freelancing niche, from accounting to fitness. In particular, companies are looking for freelancers to meet their creative and marketing needs.

Hiring freelancers is becoming more acceptable and attractive for many businesses. This creates an incredible opportunity for businesses to tap into a pool of talented professionals who are not tied to any one company. Additionally, freelancers are often more agile and able to adapt to changes quickly, which is a valuable asset in today’s fast-paced business environment.

Dropshipping 

eCommerce continues to be a safe bet when looking for startup ideas that will hold up under economic pressure. One of the increasingly popular avenues of starting an eCommerce business is dropshipping. In an eCommerce business model, dropshipping means a business owner has no physical inventory.

Instead, the retailer receives products from a supplier, who sends products directly to the buyer. Dropshipping is a great startup business because it is easy to set up, with not a lot of capital. If you already have skills in sales and marketing, dropshipping is a simple way to become an entrepreneur.

Artificial Intelligence

More than 50% of GDP is predicted to come from digitally transformed enterprises in 2023. Exciting new technological advancements, like generative AI, clearly demonstrate the room for growth and evolution.

Generative AI, such as ChatGPT, can solve complex problems and produce new data, which can then be used to train other AI models.

It is clear why many investors and entrepreneurs are attracted to this technology. Between 2013 and 2022, around $257 billion in venture capital funding was pumped into artificial intelligence.

In particular, there is much anticipation on how AI can be developed for use in medicines and therapeutics, from symptom detection to accurate biometric data.

Financial Planning and Accounting

One business model that will always be high in demand and especially so during an economic downturn is accountancy and financial planning services.

These startups typically provide accounting services, such as bookkeeping, invoicing, and payroll, that can be accessed from any device. The cloud-based accounting services offered by accounting startups are often more affordable than traditional ones, allowing businesses to manage their finances anywhere in the world.

Accounting startups are often founded by entrepreneurs with experience in accounting or technology and often partner with firms to provide their services.

The accounting startup market is growing rapidly, and many companies offer affordable and innovative accounting services. Whether that comes in the form of investment advice, general accountancy, tax advice, or bookkeeping, starting a financial management firm is a great way to take advantage of and make the most of the current economic climate.

Starting an accounting firm from scratch is challenging, but it can be rewarding if you succeed. However, having strong business acumen and a lot of experience in accounting and finance is essential.

For all startups, it is essential to utilize the latest trends and tools, including SEO tools and strategies, social media, online ads, and mobile applications. Necessity is the mother of invention! Some of the greatest successful startup stories began during a period of economic downturn. Some of the most successful companies that started during a recession include NerdWallet, Uber, and WhatsApp.

Whether initiated during a period of economic boom or downturn, successful startups start with a strong team, creativity, perseverance, and hard work. It’s essential to have a strong team of people committed to a startup’s success, helping you overcome any obstacles and achieve your goals. Remember, the most successful entrepreneurs didn’t give up when things got tough.