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Small Business Trends and Developments in 2024

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Small Business Trends and Developments in 2024

May 25, 2024 — Small businesses play a vital role in the economy, and their evolution continues to shape economic dynamism and innovation.

Small Business Trends and Developments in 2024

Here are some key trends and developments for small businesses in 2024:

  1. Small Business Employment Statistics:
    • Almost All Businesses Are Small Businesses: In the United States, 33.3 million businesses qualify as small businesses, making up 99.9% of all U.S. businesses. Their dominance reflects their significant role in generating employment and contributing to economic stability.
    • Nearly Half of U.S. Employees Work for Small Businesses: Despite over 80% of small businesses operating without any staff, they employ a total of 61.6 million people, representing 45.9% of the entire U.S. workforce. Small enterprises are integral to job creation and overall economic success.
  2. Tax Year Changes:
    • VAT Threshold Increases: In the 2024/25 tax year, the VAT registration threshold increases to £90,000, and the VAT de-registration threshold rises to £88,000. Businesses falling below the latter threshold may consider de-registering.
    • National Living Wage: The National Living Wage for workers aged 21 and over increases to £11.44.
  3. Predictions for Small Businesses in 2024:
    • Legislation and Tax Changes: Expect regulatory shifts and tax updates.
    • Side Hustle Trends: Continued growth in side businesses and gig economy work.
    • Young Entrepreneurship: More young individuals venturing into business ownership.
  4. Positive Outlook for Small Businesses:
    • According to recent data, small business leaders are optimistic about 2024. They’re taking proactive steps, including hiring and implementing new tools, to stay competitive and successful.

In summary, small businesses remain resilient, adaptive, and crucial to economic prosperity. As we move forward, their impact will continue to shape our communities and drive innovation.

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Financial Influencer Jenny Okpechi Shares How Early Investing Helped Her Build a Six-Figure Portfolio

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Financial influencer Jenny Okpechi, known online as @savvymoneygirl, is championing the power of early and consistent investing after building a multiple six-figure portfolio through smart financial planning and diversified income streams.

Speaking to Euronews, Okpechi emphasized that wealth-building is a long-term process rooted in discipline, education, and strategic action—not overnight success. Her financial journey began at just 16, when she started saving and investing small amounts despite limited resources.

“I started very young and very intentionally,” she said. “I learned to budget, live within my means, and gradually moved from saving to investing in treasury bills, corporate bonds, and stocks.”

Raised in a traditional African household where financial decision-making was often seen as a male role, Okpechi had to push against cultural barriers. “I wanted to prove that women could manage and grow money just as well,” she said. That determination led her to pursue multiple sources of income while also studying, including paid surveys, tutoring, and blogging.

Today, Okpechi boasts eight income streams, ranging from her full-time job as a Scrum Master and a part-time healthcare assistant role, to digital product sales, affiliate marketing, brand collaborations, and investments in REITs, index funds, and stocks. She is also building Moneybestie, a fintech app aimed at improving financial literacy among women and girls.

“I pay myself first and invest consistently. I only invest in what I understand—nothing fancy, just steady and simple,” she said. She credits compound interest and the discipline of regular investing as major factors in her portfolio growth.

Okpechi encourages young people to start investing early—even with small amounts. “Don’t wait until you earn more. Start with £25 a month if that’s all you can. Automate it, and let time do the work,” she advised. “Time in the market beats timing the market.”

Despite her success, Okpechi has faced challenges—from overcoming imposter syndrome in the male-dominated finance and tech industries to battling burnout while juggling multiple roles. She also confronted deep-rooted gender biases that undervalue women’s financial potential.

Her message to aspiring investors is clear: “Learn about money like your financial freedom depends on it—because it does. Talk about money, forgive your financial mistakes, and keep moving forward.”

With Generation Z reportedly beginning to invest earlier than previous generations—at an average age of 19—Okpechi’s story offers both inspiration and practical guidance for anyone looking to secure their financial future.

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U.S. Economy Contracts for First Time in Three Years Amid Tariff Turmoil

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The U.S. economy shrank at an annual rate of 0.2% in the first quarter of 2025, marking the first contraction in three years, according to revised figures released Thursday by the Commerce Department. The downturn was driven primarily by a sharp increase in imports, as businesses rushed to bring in foreign goods ahead of sweeping tariffs announced by President Donald Trump.

The updated gross domestic product (GDP) figures represent a modest revision from the department’s earlier estimate of a 0.3% decline. The reversal follows a 2.4% expansion in the final quarter of 2024.

Imports surged at a staggering 42.6% annual rate during the January-to-March period—the fastest pace since late 2020. That influx of foreign goods, though technically counted as part of consumer spending, subtracts from GDP since it represents consumption of items not produced domestically. The import spike alone shaved more than five percentage points off overall economic growth.

At the same time, consumer spending weakened significantly, and federal government expenditures dropped at a 4.6% annual rate, the steepest decline in three years.

“The rush to import goods ahead of the tariffs created a temporary drag on growth,” said a senior Commerce Department official, noting that the effect is expected to ease in the second quarter.

Despite the overall contraction, underlying economic indicators remained relatively strong. Business investment soared by 24.4%, and inventory accumulation—prompted by concerns over supply disruptions—contributed more than 2.6 percentage points to GDP. A core measure of economic activity, which excludes volatile elements like exports and government spending, rose at a solid 2.5% annual pace, down slightly from 2.9% in the previous quarter.

President Trump’s trade policies have introduced a new layer of uncertainty for U.S. businesses. The administration imposed 10% tariffs on a broad array of imports, alongside specific duties on steel, aluminum, and automobiles. However, a federal court on Wednesday struck down the blanket tariffs and several country-specific levies, ruling that the president had exceeded his legal authority.

Economists suggest that the first-quarter weakness may prove temporary but warn that the ongoing trade disputes could weigh on growth throughout the year. The Commerce Department will release its final estimate for first-quarter GDP on June 26.

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Stellantis Appoints Antonio Filosa as CEO Amid Profit Slump and Strategic Challenges

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Stellantis has named Antonio Filosa, its Chief Operating Officer for North America, as the company’s new Chief Executive Officer, following the unexpected resignation of former CEO Carlos Tavares in December. Filosa, 51, will formally assume the role on June 23, pending approval at an upcoming shareholder meeting.

The announcement, made on Monday, comes at a turbulent time for the world’s fourth-largest carmaker, which has been grappling with slowing sales in key markets and internal disagreements over the pace of electrification.

Stellantis, the multinational automotive group behind 14 brands including Peugeot, Fiat, Chrysler, Citroën, and Jeep, issued a profit warning last September due to slumping demand in the United States and Europe. The warning preceded the abrupt exit of Tavares, who reportedly clashed with the board over his aggressive push for a full transition to battery electric vehicles (BEVs) in Europe by 2030. The board had advocated for a more gradual approach.

Filosa’s appointment signals a strategic reset for the group, which is under pressure from weak North American performance, rising global competition, and trade policy uncertainties, particularly from the United States. Former President Donald Trump’s tariff stance on foreign automakers continues to cast a shadow over multinational manufacturers like Stellantis.

In its official statement, the company praised Filosa for his “proven track record of hands-on success during his more than 25 years in the automotive industry,” as well as his “unrivalled knowledge of the company and recognised leadership qualities.” The Naples-born executive has held various leadership roles across Stellantis’ global operations and was promoted to head of North America shortly after Tavares’ departure.

During his tenure in North America, Filosa has worked to reduce bloated inventories and restore dealer confidence following months of sluggish sales. As CEO, he will now oversee a vast portfolio of brands and be tasked with balancing profitability, innovation, and sustainability across diverse markets.

Filosa’s leadership will be closely watched as Stellantis navigates regulatory shifts, intensifying competition in electric vehicles, and a volatile geopolitical landscape. The shareholder meeting to confirm his appointment is expected to be announced in the coming days.

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