Fastest Growing Small Business Industries

By Michael McLellan

Today's fastest-growing small business industries are taking advantage of improved technology and niche-market opportunities. Three industries that have recently experienced tremendous growth with eyebrow-raising revenue numbers for small businesses are health care, petroleum-related businesses and software providers. Small firms are capitalizing on the availability of technology that is cheaper and better – giving their small businesses the opportunity to realize growth and meaningful profits faster.

In the health care sector, small businesses continue to have success catering to Americans' fitness and medical issues, especially aging baby boomers. In the US, nearly 80 million baby boomers make up a lucrative target market, as that population appears willing to spend money to make themselves look and feel better as they age. Capitalizing on this demand is Palomar Medical Technologies, a company that sells equipment that uses light-based technology to erase wrinkles, varicose veins, and unwanted hair. For those boomers that simply want to feel good rather than merely look good, Endo Pharmaceuticals has been developing pain relievers such as Lidoderm, a prescription patch remedy for sore muscles and joints. The drug was intended to treat pain related to shingles, but it is now being used to treat sore back muscles and arthritis.

Despite record-high prices for gasoline, consumers and businesses have not been able to cut back significantly on gas-related spending. The demand for petroleum drives prices up, translating to big business and consistent growth for oil and energy-services companies. Consumers often think of the big oil companies raking in the profits, but many petroleum-related small businesses have seen the high tide raise all ships. VAALCO Energy is a relatively small independent company enjoying big success right now as it focuses on the acquisition, exploration, development and production of oil and gas. Firms providing gasoline and crude oil transportation or related peripheral services such as storage of crude oil, natural gas and refined petroleum products have also seen their businesses grow.

Software companies have recently found a soft spot too. Several Internet software providers have found success riding the coattails of a somewhat surprising rise in online advertising spending. Other companies found success by catering to the need for optimized operating systems with increased network security. Companies such as aQuantive and ValueClick have had recent success by creating or managing online advertising campaigns for other businesses. These companies provide services such as online media buying and planning, ad campaign management, e-mail direct marketing, search engine optimization, and data warehousing and analysis. Software publishers such as Red Hat have had their door beaten down by customers seeking support for Linux, the open-source operating system.

Whether it is helping feed the Americans' desires to look and feel better as they grow older, helping to fill the gas tanks of Americans' SUVs, or helping other businesses attract and serve their customers most efficiently, growth is occurring in the industries where small businesses are using technology to respond to the needs of their customers.