COVID-19 and Entrepreneurship

The COVID-19 pandemic has proven itself to not only be a health crisis. It has caused a freakish downturn in the economy. This virus is here to stay, and its consequences have just begun. The world is stuck in the mixed feeling of wanting to step out without any worries and wanting to earn their bread and butter despite the ongoing crisis.

The low-cost product sourcing model, where China and India are the world’s manufacturers, will end along with globalization. The impact of COVID-19 on the national, regional and sector-level economy has been very different at different levels.

The pandemic has caused a sharp rise in unemployment and a decrease in the overall GDP of the nation. Many major companies also have significantly reduced operations. The stock market has seen one of the worst dips in many years and it would take a long time to get back to its original state. Entrepreneurs, especially, have to face a new reality.

But at the same time, the stock market has seen many new investors in this period of lockdown, mainly due to the lack of activities for people to engage themselves in. Though this pandemic has a negative impact on most of the industries certain sectors like chemical industries remain immune to this crisis and have, in fact, seen an exponential rise.

‘Every crisis is an opportunity’

Though the pandemic has cost us huge economic losses, it has also created new business opportunities. It has thrown open opportunities for several individuals.

If your business deals in online shopping, food delivery, e-sports or video conferencing -industries where business is currently booming — it’s a completely different picture for you! You are certainly better off than you will be if you were working in the food, retail, entertainment or sports industry.

This current crisis is driving students and companies towards a digitalised society. This has become a catalyst for some firms to develop their work/learn from home solutions. Also, in this digital era, OTT platforms have become very popular. Platforms like Netflix, Amazon Prime and Hotstar have become a desideratum for entertainment seekers rather than a luxury.

Let’s not forget that some of the most disruptive, interesting companies have been created and have taken off during times of crisis. Google, eBay, LinkedIn…after 2001. Uber, Airbnb, Instagram, WhatsApp after the 2008 financial crisis. These are some examples of prominent companies which have emerged in times of distress. This means there are always great opportunities for great leaders!

By Deeptika Kannan, Content writer, ALINEA.