Globally, more than 70% of startups have had to end full-time employee contracts since the onset of the covid 19 pandemic. Many entrepreneurial businesses have shifted towards meeting the market’s current needs and demands through goods and services borne out of the pandemic. The way entrepreneurial businesses have been affected by the pandemic has affected how people perceive entrepreneurship as a job choice in the future. The covid 19 pandemic has many people in a critical spot, most notably businesses. Governments worldwide have been tested and overly stretched. They have established new rules and norms to bring economies back on their feet.
Ariel Pfeffer has identified one less noticed and discussed subject: the global pandemic’s effects on entrepreneurial businesses. Since many sources of finances have dried up, many startups have been left with only enough for survival while others fall into the red zone of nearly collapsing. On the contrary, while many businesses have collapsed, the covid 19 pandemic has led to a new entrepreneurial activity wave. Many entrepreneurs worldwide have shifted their focus to respond to the market’s needs during this season, possibly tackle the crisis. For instance, we have seen automotive companies manufacture the much-needed ventilators while some music festival organizers oversee popup morgues. Many entrepreneurs have come up with new ideas to respond to the emerging needs that governments and the involved institutions have insufficiently addressed.
How The Pandemic Is Re-Shaping The Entrepreneurial Sector
Typically, during crisis times, the government’s support of the business sector has always been essential. Such is the case during the covid 19 pandemic. Many governments across the world have taken specific measures to cushion local ecosystems. For instance, the UK government implemented a 1.25billion euros rescue package to aid new ventures reiterating that the support is for driving innovation, which creates technology success for the future.
Supporting innovative startups is imperative as they are essential are necessary for the future. However, the covid 19 pandemic shows the importance of small ventures with innovative approaches.
The Changing View On Entrepreneurship
The way the covid 19 has affected entrepreneurial businesses will undoubtedly change the way people perceive entrepreneurship in the future. Some people argue that the pandemic has negatively impacted the risks involved with entrepreneurship. Ultimately, it could prevent startups from attracting the right talent, and there are claims that the changes we see today will alter how people perceive entrepreneurship in the long term.
Recently, entrepreneurship has been more associated with the stereotypical high tech startups often based in specific geographical areas and favorable environments. Such companies’ success is undoubtedly crucial for our societies, but it seems like entrepreneurship has become a game for the happy few.
It is more likely that many startups may fail to survive the pandemic, but it has certainly given birth to many entrepreneurial activities. It brings a constant reminder of the importance of innovation in the entrepreneurship sector. We should ask ourselves how these changes will impact us going forward and what different stakeholders can do to ensure we are moving towards the right path. All in all, we can say that the sector also needed that shake up to restructure and intensify a more creative and innovative spirit. But, entrepreneurship is not going anywhere, and it is here even after the pandemic.