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Covid-19 has sparked a positive and negative wave of innovation in the world of entrepreneurship. Researchers and entrepreneurs dedicate their lives to creating a future for consumers and organizations. Scientific studies, as well as the significant risks that entrepreneurs are taking, are vital to ending the Covid-19 crisis and developing new techniques to adapt to a post-pandemic world.
Related: 5 Breakthrough Approaches to Hiring in the Covid-19 World
While entrepreneurs are optimistic and resilient, the pandemic will have to change their approach to business for decades to come. While some businesses may have collapsed, other elements related to the pandemic will build the next generation of entrepreneurs.
While Covid has drastically affected the elderly population, it has also shocked the global economy. Before Covid, 158 million Americans were employed. Many people may not be actively seeking work due to social distancing measures. Yet over 30 million Americans are currently out of work.
Another economic problem that we have seen over the past few months is the supply chain for goods and services. Most of our components come from China, where the flow of materials is severely affected by the pandemic. A shortage of supplies has shocked our economy and can have long-term effects.
Companies that have taken a hit due to Covid
Many large sectors have lost a large part of their market value. Some of these companies are:
Uber – The company has lost $ 2.9 billion, laid off 3,000 employees, and cut its ridesharing volume by 80% since Covid launched. Airbnb – According to the Financial Times, Airbnb cut its market value 16% from $ 31 billion to $ 26 billion. They laid off around 1,900 employees and continue to struggle with the Covid circumstances. Victoria's Secret – Revenue declined 46%. The company announced it would close over 250 stores in the United States and Canada. They reported over 850 layoffs.
Positive aspects of the economy during and after Covid
Could there be positive outcomes for society and the business community during and after Covid? In fact, most of it happens right in front of our eyes.
The need for people to stay connected is vital in times of crisis. Companies around the world have come together to serve their communities like never before. Despite physical distancing measures, business owners have found solutions to the problems related to the pandemic. Business leaders, researchers, and scientists have found a way to foster connectedness even through major tragedies.
Related: COVID-19 will fuel the next wave of innovation
Distilleries have made disinfectants for healthcare workers. Fashion designers have developed personal protective equipment (PPE) such as dresses and masks. Individuals have organized fundraising sites for those who have problems or are unemployed. The cooperation and support since the beginning of the pandemic has been nothing short of wonderful.
Remote working has become the new norm allowing people to work from the comfort of their home. The adaptability of organizations that managed to migrate to a virtual setup within a few days was remarkable.
Technological advancement has also provided a way to maintain social connectivity. Meetings have been replaced by virtual forms of communication such as Skype and Zoom.
But will the pandemic increase the rate of entrepreneurship? Karl Ulrich, Professor at Warton University in Pennsylvania and Vice Dean for Entrepreneurship & Innovation, says: “Creative problem solvers helped immediately, and that is certainly an entrepreneurial impulse. And some of those efforts will lead to business creation. "
Sales at companies like Uber Eats, Door Dash, and Chewy.com have skyrocketed, providing jobs for those who may be struggling. Other big tech companies like Google, Apple and Amazon have sped up the use of online interfaces and also provided jobs for those who may be unemployed or looking for a second job.
Ultimately, young entrepreneurs today are faced with a new reality that will shape them into resilience. Successful companies like Airbnb, Slack, Venmo, and Square can all be traced back to the 2008 economic recession. Perhaps more life changing organizations will emerge due to our current pandemic.
The next generation of entrepreneurs
Entrepreneurs are people who recognize and use opportunities to foster positive social change. The pandemic enabled entirely new categories of business, some of which resulted in the creation of businesses. Companies that choose to take advantage of cumbersome change will be successful and those who don't will be disrupted.
Related Topics: Marketing Best Practices During and After COVID-19
Perhaps the most important role entrepreneurs play in a crisis is a commitment to recovery and a desire to promote long-term sustainability for our community. What happened during the pandemic will have lasting effects on society. However, entrepreneurship and academic engagement have sparked optimism around the world and could lay the groundwork for the next generation of entrepreneurs.