Covid-19 and Entrepreneurship


Published: October 27, 2020

We Accept Risk and a Profit. When There is One!

With the pandemic grabbing the entire world economically, death toll, lay-offs, and millions of unemployment benefits paid out, what is humankind to do? Many small businesses have shut down, never to reopen again. Entrepreneurship is the backbone of our great economy, and we know when we open our various enterprises’ opportunity and catastrophes go hand in hand.

Consequently, in a matter of weeks, the coronavirus epidemic has altered the way thousands of businesses operating in an unprecedented manner. Covid-19 has challenged businesses of all sizes, from small restaurants to multinational organizations that have been forced to change their way of working amid various shutdowns to curve the virus’s spread. And these changes took place in a matter of weeks with an attempt to stave off business shutdowns. Thus, the shift to working at home to others makes deliveries to bring in some revenue to survive.

Digitalization has been around since the early 1990s, and if there is an excellent time to take advantage of digital maneuvering, it is now. With teleconferencing and other technological devices, be it phone or computers; therefore, being able to communicate with customers, prospects, or whoever, technology is our way out. However, embracing technology and internet usage put entrepreneurs on a different level than it would have happened in the 1990s.

Hospitality and Other Industries

This new normal of those who can work at home has developed a further need for the hospitality industry to make unique personal services, especially in the food and grocery business where deliveries make consumers feel comfortable rather than traveling out. Hence delivery companies are booming; many other firms are laying-off hundreds of thousands of workers and forced massive downsizings. Never underestimate the entrepreneurial, innovative spirit and their vision to see an opportunity where others see disaster.

Restaurateurs are serving call-in customers through the door with gloves, with the doors locked and customers showing that they ordered over the phone to get their orders. However, not all industries are so fortunate as they continually seek ways to replace their primary revenue. The airline industries are reaping massive losses, lay-offs, and workers applying for unemployment benefits.

No matter what industry we are in, as entrepreneurs, we understand the risk of starting a business, and unknowns such as this pandemic is always present in our minds of the uncertainty of business operations. Therefore, government intervention through regulations, taxes, and the imposition of licenses to operate are areas that we must stay cognizant. However, small businesses are surviving covid-19, and coming up with novel ideas to stay-afloat is not by accident, but innovation, brainstorming, and business acumen.

Will we lose some businesses in the process, yes? Hence, researchers allege in the best of times; we will lose two-thirds of business starting within the first 5-years. Will some need to update their skill sets to offset the possibility of going out of business; yes. Consequently, we are learning as we go; in the end, we will survive with sound business management and marketing and moving to digital transformation.

Since the new millennium, we have known that the 21st century would be different, and the old traditional skill sets must be blended with a more modern digital revolution that out of two decades we should have learned. The use of websites and e-commerce will bring more traffic to businesses through the internet. The pandemic has driven us to do what we should have done, promote digitalization in our various organizations.

 Covid-19 and Entrepreneurship

I recently read an article in the World Economic Forum: https://www.weforum.org/agenda/2020/06/how-covid-19-will-change-entrepreneurial-business/https://www.weforum.org/agenda/2020/06/how-covid-19-will-change-entrepreneurial-business/

Thus, the concept of how the pandemic offered entrepreneurs opportunities and how government, businesses, and social organizations had to pivot and adapt to the industry’s new norm today. The application of entrepreneurship during the pandemic is global. Hence, how entrepreneurs create job opportunities and how entrepreneurship is currently and in the future. Few organizations have not been unaffected by this virus, and new norms and rules made economies the chance to survive.

Finance, marketing, lack of capital, and management are a few reasons businesses fail, so it is so with covid-19. (1) Finance: the managing of money is essential in the direction of a company. (2) marketing: the knowledge of how to move various products and services from creation to end-user is critical. (3) scarcity of capital is one of the main reasons why businesses fail, not being able to deal with one’s day-to-day finances when they come due. (4) management acumen is the ability to make sound judgment and quick choices in business.

Organization worldwide has increased entrepreneurial activities to bring relief and boost the economy through job development. But the government must do its part as supporting entrepreneurs through tax cuts, breaks, emergency financing, and relaxing of specific regulations that could hinder young startups and small businesses. Thus, creating an environment of promoting entrepreneurship that would make it easier to operate and job development.

Conclusion

As entrepreneurs, our creativity is always at work and seeking new methodologies to solve problems. Covid-19 and entrepreneurship is the new springboard to using our God-given talents to overcome this virus with teamwork from our global partners. Fresh discoveries will come out of this disease; a modern workforce has already started with remote workers doing what once done in the office from anywhere one has a computer with internet access. Entire new industries will come out of this like the phoenix rising from the flames.

The pandemic will not win but will draw ingenuity from each of us to continually implement our current communication phenomena without face-to-face interactions. The utilization of digitalization more in our daily lives as we move forward from the 1990s to embrace the 21st century and its new challenges. So as we find new ways to do the same thing only from a technological perspective, we will grow to become more innovative and solve this problem as we move on to solve the next one.
Dr. Dem