3 Business Models That Will Shape the Future of Entrepreneurship

As entrepreneurs, we always strive to stay ahead of the curve. Whether that’s in our own industry — developing new technologies, services or strategies — or venturing into emerging markets. But with all the buzz about the latest tools, gadgets and startups, it can feel like the world moves faster than we do!

Fortunately, there are a few methods for identifying trends and putting your finger on the pulse of emerging business models. We might not be able to tell the future, but we get glimpses into where the business world is headed.

Here are three business models that will likely shape the future of entrepreneurship in 2025 and beyond.

Related: 4 Effective Business Models That Built Billion-Dollar Companies

1. AI SaaS

I won’t lament that artificial intelligence (AI) is a hot topic. The technology and applications surrounding it are growing at a rapid pace. So, too, are we seeing a reshaping of the Software as a Service (SaaS) sector.

For one, SaaS companies are leveraging AI technology to better the customer experience, often through hyper-personalization. Where historically the SaaS industry has been rather “cold” in its approach to selling and retaining customers, AI provides an elevated level of service even without the human touch. AI can analyze customer behavior, preferences and interactions to provide custom-tailored recommendations.

Also, existing SaaS solutions are providing additional value and features to customers through embedded AI technology. Take search engine optimization (SEO) solutions like Surfer and Ahrefs, for example; both are industry-leading SaaS tools that have recently added extensive AI-enabled features, such as an AI article generator and AI-driven content editing (respectively).

The AI SaaS business model is becoming increasingly popular, profitable and appealing for both entrepreneurs and investors.

2. Small-scale agency

I recently attended the Chiang Mai SEO Conference in Thailand, wherein Chris Kirksey of Direction.com spoke of 2025 being the “year of the small-scale agency.” The economic pressures of 2024 have compelled many small and medium-sized businesses (SMBs) to prioritize cost-effective marketing solutions. They want measurable results without the hefty price tags of large agencies.

This doesn’t mean that large marketing firms are out of the business; certainly, the opportunity is there if you know where to look. But we’re likely to see a widening of “the middle tier” of businesses, so to speak, seeking marketing services between $500-$2000 per month.

This creates a fertile ground for small-scale agencies to offer focused, affordable packages. Small agencies tend to be more agile in their approach, appealing to business owners who want to stretch their budgets without sacrificing quality.

We’re also likely to see more agencies taking the “hybrid model” approach. This may involve equipping business owners with DIY solutions with the availability of professional guidance/consulting. For example, a small-scale agency might subscribe a business to a low-cost review management solution but bundle in monthly strategy calls, done-for-you integrations and review generation.

This paring down of digital marketing packages allows for more cost-effective solutions while still supplying business owners with the benefits of expert consulting and insights.

Related: How to Start a Successful Marketing Agency from Scratch

3. Immersive commerce

Remember the metaverse? It’s still around, though you may not notice. Virtual or augmented experiences are becoming increasingly prominent in commerce, though their application is subtle.

Instead of grandiose virtual worlds (common with online gaming), metaverse technology is being used to enhance the ways in which consumers are able to view, research, experience and purchase products.

For example, the IKEA Places app uses augmented reality technology to allow customers to visualize furniture in their homes before they buy, and Sephora Virtual Artist allows people to test makeup products on their faces through an app. Unlike early metaverse technologies, these apps don’t scream “virtual reality;” instead, they are simply tools to enhance convenience and interactivity.

As immersive commerce becomes more commonplace, we’re likely to see this show up across omnichannel strategies. Virtual environments allow businesses to bridge the gap between a physical store and the online experience. It is already revolutionizing how businesses sell and how consumers shop.

2025 business models: Fact or prediction?

As stated, it’s impossible to know for certain which business models will emerge and thrive in 2025. But there are signs. The rapid growth of AI technology is one. Shifts in the global economy is another. And the slow but persistent adoption of VR and AR points to an evolution in online commerce.

The key to staying “ahead of the curve,” so to speak, is simply to pay attention. What are consumers talking about in your space? In what ways is emerging technology removing friction and bottlenecks from the sales process? What tools and strategies are making our (business owners and consumers) lives easier?

And how can you, as an entrepreneur, play a role in shifting your industry’s landscape?

Related: How Your Business Can Be Ahead of the Curve by Looking Backward and Thinking Forward