Entrepreneurship during the times of COVID-19: Challenges and Consequences

Every crisis brings challenges and threats to entrepreneurs and their organisations ,no matter if initiated by human behaviour, natural disasters or economic mechanisms. At the end of 2019 the coronavirus started spreading and WHO?declared Covid-19 a pandemic. Many private and public life aspects had to move online. Entrepreneurs were not an exception. They had to start moving their business online. Some had to?close their businesses because of governmental restrictions temporarily. The entrepreneurs were also expected?to find innovative solutions in all aspect of their entrepreneurial endeavour as the consequence of pandemic linger.

In the face of global Covid-19 pandemic, entrepreneurs had to face?a new reality : that it is not only a huge sanity and health crisis affecting millions, or even billions, of people across the world. This is also provoking an unprecedented downturn in the global economy.

?Entrepreneurship is an exciting but risky business, even in the best of times. The last months could reasonably be called “the worst of times” that the world has collectively endured in recent memory. But entrepreneurs are a?special breed: individuals for whom challenges are exhilarating rather than fear –inducing, who respond to change by pivoting rather than digging in their heels, and who see opportunities where other see roadblocks.

?The pandemic disrupted plans, changed priorities, scrambled existing networks, and made us all acutely aware that we cannot predict the future. History has shown that crisis inspires innovation. During the pandemic, innovation has been critical to keeping many people’s lives and workplaces functioning safely. Dining out at restaurants has been replaced by meal and grocery delivery services, meetings are held via video conferencing, and health care visits are occurring on our screens.?

?Effect on Economy:

The toll COVID-19 has exacted on the global economy has been significant, with the International Monetary Fund (IMF) estimating that median global GDP dropped by 3.9% from 2019 to 2020, making it the worst economic downturn since the Great Depression. During the first wave business lost 25% of their revenue, and 11% of their workforce, with contact- intensive sectors and SME’s being particularly heavily impacted. However, considerable policy assistance helped to avert large scale bankruptcies , with just 4% of enterprises declaring for insolvency or permanently shutting at the times of COVID wave.

Effect on Retail and eCommerce:

Malls , shopping centers were temporarily shut down. Also, since people distance themselves from social gatherings and crowded spsces, they preffered ordering their necessities online. Similar is the case with the retail business. On the contrary, digital commerce businesses are trying to make the most of this situation. Nevertheless, thriving in such an outbreak is still a challenging job for eCommerce businesses.

The impact of pandemic in daily life were extensive and have far reaching consequences:

• Slowing the manufacturing of essential goods.
• Disrupt the supply chain of products.
• Losses in national and international business.
• Poor cash flow in the market.
• Significant slowing down in the revenue growth.
• Closure of public places like malls, restaurants which in turn led to huge losses.

Yet, while a large number of start-ups have suffered during the pandemic, COVID-19 has also led to an increase in entrepreneurial activity.?The pandemic has?initiated, “Atmanirbhar Bharat”, New Educational Policy 2020, “ Labour Codes”. All of the above have considerably re-built the trust of Indian business, labourers and society at large. Undoubtedly, with Atmanirbhar Bharat, and new MSME policies, the Indian manufacturing sector has been given a push.

Start ups have continued to play a critical role for economies. Many young firms have reacted fast and flexibility to the pandemic, and have been critical in helping many countries shift towards fully-digital work, education, and health services, and have provided innovations in medical goods and services.?

Though the pandemic turned our lives upside down, the spirit of Bharat remains high.

-Chef Junction in Bhubaneshwar:

When the lockdown started, social media was full?of people sharing their food experiments, clearly implying that they were not ordering food from outside to maintain safety. College mates Suryanshu and Epari launched Chef Junction, a website that enabled users to order hygienic home cooked meals. Not only this they provided a platform for home Chefs to make?a living.

Custkart in Bokaro:

It is a performance assessment platform that institutes of all sizes can use to conduct any kind of exams- from multiple choice questions to subjective test. It also provides add on question banks?and white labelling at an additional cost?as per the institute’s requirement.

?Hence a true entrepreneur always searches for change, responds to it and exploits it as an opportunity.