The nemesis and salvation of zombie corporations - Startups and the Great Economic incubator and experimentation

This is the second and final article to the two part series of articles exploring the revival of economies after the COVID-19 economic reopening that is happening around the world after various degrees of shutdown/ lock-down - How new life can be injected into the zombie corporation and their economic order that is retarding or hampering the great economic revival and renaissance that everyone is hoping for.

The first article can be viewed from https://www.dhirubhai.net/pulse/resuscitate-zombie-firms-jolt-economy-back-life-derek-lee/.

Startup is the nemesis, salvation and bipolar of zombie corporation ; they are full of life, vibrancy and innovation - new ideas on how the world, economy and corporations should transform, operate and function. They are akin to the youths of a nation. Given the right care and support, startups will usher the national economy to greater heights.

But startups usually lack the capital, opportunity to experiment their offerings unless they sell parts of their control off to external corporations, corporate venture capital or various funds which will offer them the capital but likely dictate where and how they experiment with their innovation. In the end, there is limited proliferation of innovation that is usually to the advantage of the already successful entities owning part of the startup. It is likely that such startups will become a unit or department of the larger entity with limited control of their innovation.

This is not a bad way and idea to raise capital, expand and grow but some startups want to strike it out on their own and become independent successful corporations in their own rights one day. Then, they can do good to the society and collaborate with whoever they want and negotiate them on their own terms, rights and perhaps share their innovation with whoever they want and deem necessary. Zombies will never have the resource to fund startups as they are likely to be struggling all the time even in a thriving economy. They also have a very sunkun brand name that all will want to avoid unless you are very desperate for projects.

But the COVID-19 pandemic and the massive monetary and fiscal stimulus of cheap loan and credit unleashed by central banks and government could be the turning point for both startups and zombies when it enables collaboration. If only someone is appointed as part of the cheap loan and credit deal to match-make complementary startups and zombies together independent of personal and organisational interest.

What is a better bragging right for a startup to have than to be the catalyst in the revival of zombie businesses, and not get sucked into negative zombie cultural vortex concurrently profiting from the revival as well. Since the zombie corporations need the lifeline loans to survive, they will be compelled to adapt, transform and be future economy ready thus leading to their collective rise and revival or else extinction will come their way. Both complementing startups and zombies will get what they want to thrive and survive in the new world order symbiotically boasting employment. They can also be independent and/or exclusive of one another if they want.

Draining the zombie swamp and ecosystem and build a stronger and healthier future ready economy and corporations with the cheap monetary loan and credit unleashed by the central bank and government, can be considered a great national incubator experience for revival could be the most unlikely but positive outcome from the COVID-19 pandemic and cheap loans ; and a dignified tribute to those who have unfortunately perished in this calamity so the living can learn something from their sacrifice.

Derek is a contract consultant based in Singapore. He is always looking for quality and relevant long term employment opportunities within the nation. He is sharing his perspectives in his personal capacity in the hope that a layman's general perspective might spark off something brilliant in making the world a more peaceful and better home for all that resides within it.

Derek holds an MBA and BSc (Hons) in Business Computing (Business Management and Computing) awarded by The Bradford University,UK, Specialist Diploma in Operational Risk Management from The National University of Singapore (NUS) Risk Management Institute (RMI), Specialist Diploma in IT Security from The Nanyang Polytechnic, Singapore , Diploma in Mobile Wireless Computing from The Temasek Polytechnic, Singapore, and The Oxford Fintech Program Certificate from The Oxford University, UK.