Guest Blog: Crisis Entrepreneurship: How Tragedy can Inspire Innovation

Written by Ahmed Adel Saad , Programme Manager, Entrepreneurship Centre.

The recent earthquake that struck Syria and Turkey serves as a powerful reminder of life’s fragility and the world’s unpredictability. Even in the midst of tragedy and crisis, there can be a glimmer of hope. Hurricanes, tsunamis and pandemics, for example, have historically served as catalysts for entrepreneurship and innovation. These events can inspire individuals and businesses to think creatively and develop solutions to the challenges they face, resulting in the emergence of innovative startups and cutting-edge technologies that transform industries and change lives.

The emergence of necessity-based entrepreneurship

The idea of starting a business out of necessity is referred to as necessity-based entrepreneurship. It is frequently acknowledged as a major force behind innovation, especially during times of crisis like natural disasters or economic downturns. People in difficult situations are frequently compelled to use their imagination and come up with fresh solutions to issues, which results in the invention of new companies and goods that satisfy the demands of a shifting market. This type of entrepreneurship is motivated by the need to fill a specific need or market gap. For instance, many people left Syria after the Syrian Civil War in search of safety and a better life. However, many struggled to find work once they arrived in neighbouring countries and were unable to make ends meet. For instance, many Syrian immigrants started food businesses in Egypt that quickly grew into successful enterprises, providing employment for both immigrants and locals.

Entrepreneurial resilience in the face of?COVID-19

The COVID-19 pandemic has forced entrepreneurs to pivot their businesses to cater to the shifting needs of customers. According to the Global Entrepreneurship Monitor, early-stage entrepreneurial activity significantly increased in 2020, driven by those who pivoted their businesses to offer essential goods and services in a socially remote way. Examples include online grocery delivery and virtual fitness classes, both of which have grown in popularity since the pandemic.

Entrepreneurs have shown incredible resiliency and creativity in the face of the pandemic’s challenges. In a challenging business environment, they have been able to not only survive but also thrive by identifying emerging needs and filling market gaps. For instance, the long closure of restaurants led some of them to start offering meal kit delivery services, which allowed their customers to enjoy their favourite meals from the comfort of their own homes.

Japan’s post-War rebuilding and innovation

Japan’s recovery from the devastation of World War II provides yet another powerful example of crisis entrepreneurship. Many entrepreneurs saw an opportunity to rebuild and innovate because the nation was in ruins. This led to the rise of companies such as Sony, which was founded in 1946 and quickly established itself as a leader in the electronics industry. Another example is the car manufacturer Toyota, which was founded in 1937 but saw a significant resurgence after the war, using the crisis as an opportunity to pivot and develop new technologies in the automotive sector.

When there is a crisis, there is often an increase in entrepreneurship as people try to turn the solutions to their struggles into viable businesses. The recent earthquake in Turkey and Syria serves as a reminder of the importance of being prepared for the unexpected and the need for individuals to harness their creativity and resourcefulness in the face of adversity. Whether driven by necessity or a desire to innovate, crisis entrepreneurship has the potential to drive economic growth and improve lives, even in the face of seemingly insurmountable challenges.

If you’ve made it this far in the article, let’s take action to support those who are suffering from the consequences of the earthquake. Even a small contribution from you can help them get back on their feet and thrive. The urgency of the situation makes it everyone’s responsibility to step up and make a positive difference. Head to UNHCR or other organisations to donate.