The Rise of Small Businesses in High-Growth Industries: A Spotlight on the Entertainment Sector

The discourse surrounding technological developments and advances, and the subsequent impact that these changes may have on society is always polarizing. Despite this, one thing is undeniable, and that is the fact that the tech world has made it infinitely easier for those with an entrepreneurial spirit to have a platform, a voice, and an audience of potentially millions of people.

This leads to more opportunities for successful start-ups, in industries that were once dominated by only a few of the major corporations. We will be exploring this concept in greater detail, mainly through observing the changes in the entertainment industry, and some of its pillars.

So, let’s observe the effects these small businesses have on the global economy – after all, this will help us make some informed predictions based on available data on where the entertainment industry may end up in the future.



Classifications for Small Businesses

The official definitions for what qualifies as a small business vary from country to country, yet there is a general sentiment that holds true most of the time. Small businesses are types of corporations, which have a small number of employees and a smaller generated annual revenue in comparison to normal businesses. Oftentimes, that generated revenue will be specified – based on the economic strength of a specific country.

For more formality though, looking at the numbers presented by the US Small Business Administration, we observe a fascinating fact that over 33.3 million businesses in the United States qualify as small ones, making up 99.9% of all US businesses. These small businesses have added over 12.9 million jobs in the last 25 years, reflecting their irreplaceable role in the modern-day employment world.

Based on the provided number, the role played by small businesses in the overall stability of the economy cannot be overstated. While the majority of small businesses operate without any employees, there is still a significant segment that does provide extra jobs for staff, with 16% of them having between one and 20 employees.

Where the entertainment aspect comes back into the picture is when we observe the actual examples, that qualify as small businesses. To list a few, independent companies, whether that is smaller film studios, indie gaming companies, various web services for shopping, AI usage, gambling, or whatever else it may be. In addition, we also see podcasts, individual YouTube channels, individual bands/musicians, etc.

Almost everything that was listed makes up a portion of the massive entertainment industry, highlighting their significance on the market.

Specific Case Studies from Digital Entertainment

If we look at something utterly massive in scope, such as digital entertainment, for example, a small business that would be a part of it may be something like an individual YouTube channel. Social media as a whole is experiencing incredible growth, even still, after all the already achieved success, and that is all thanks to these individual creators.

Small Businesses in Gambling: How to Stand Out

Looking at the gaming industry, for example, we may find many different small-scale casinos or betting websites competing with one another for the spotlight. These also qualify as small businesses that make up the larger gambling world, which, in its own right, is a part of the even larger entertainment world.

The key to success for many of the start-ups is going to be knowing their target audience, and utilizing proper marketing tools to sell their product to this target audience. One of the main reasons to mention the gambling market is because most new entries in it seem to understand this very well.

Oftentimes, successful providers in the field will pick a specific niche to isolate a target audience and capture value for them. For example, SlotsLV stands out as an established casino operator, which accepts crypto payments, offering a vast variety of games, spanning from slots to classic, live dealer options. This provider boasts lucrative promotions and bonuses, as well as cross-platform compatibility for mobile devices and desktop computers – which is something small providers can pick up on. The main value proposition of this platform lies in the all-in-one, smooth gambling experience, which attracts many.

However, how can small businesses in the gambling industry make a name for themselves? Should they focus on cryptocurrency-powered transactions, slot game portfolios, or rather, on free bonus rounds and similar promotions?

As a tactic to start out, new players in the field can focus specifically on poker, blackjack, or any other game that works for them. That is, they can narrow down their target audience even further. The reason why this method is deemed more effective not only for gambling start-ups, but in general, is due to the simple fact that a small business often lacks the resources to compete with the veterans in the same market, such as the aforementioned SlotsLV, and thus must pick niche areas to target and isolate.

Interestingly, some areas of the entertainment industry do this inherently by having genres, and not necessarily in the context of small businesses, too. Some examples include films, music, video games, etc.

Although it is more extreme in some places than others, generally, a horror film or a game is trying to capture a specific audience, in the same way that a metal band is not trying to sell their product to pop music fans. Although many people have very diverse tastes, the point still stands.

Conclusion

Going back to smaller businesses though, indie games and films made by independent studios are an important thing to highlight. They are both some of the most clear-cut examples of how a massive budget, even though it helps tremendously, is not indispensable to making a well-liked product in the digital entertainment market. To list off some of the big names, Pulp Fiction, Good Will Hunting, Whiplash, and many more represent films made by independent film studios. As for the gaming world, we have a very recent example in Palworld, an indie game that has already achieved great levels of success, as well as positive reviews among critics and everyday gamers alike.

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