This pandemic has made us realize that we cannot predict the future. Business entities now have faith that their success depends on their ability to adapt to change. The preventive measures taken by governing bodies disturbed the entrepreneurial systems. The social and economic mediums of businesses were adversely affected due to this pandemic. The majority of the businesses got liquefied due to the adversities caused by this pandemic. Small-scale businesses and startups were the most vulnerable to these restrictions.
But entrepreneurs are a peculiar kind of successful people. They have the vision to extract opportunities from disasters. They are the ones for whom challenges are gratifying rather than frightening. Numerous entrepreneurs responded to the change optimistically instead of straying away from it. The change in business models and strategies has resulted in new entrepreneurial norms and a more digital atmosphere. It’s safe to say that the pandemic changed everything for entrepreneurs, and here’s how.
1. Digitalization Becomes Inevitable
Since the coronavirus broke out, we have witnessed an exponential increase in the need for digitalization. Entrepreneurial procedures are being shifted to digital platforms. All the major sectors like agriculture, education, trading, banking, and various business models are now rapidly transforming into digital versions.
As an entrepreneur, you must be acquainted with the digital processes in the business world. Luckily, learning resources for digital domains are increasing with the demand as well. They assist you in aligning with the exclusive integration of digital and business ecosystems. Several courses are now available on physical and virtual platforms to help. You can opt for courses like MBA programs no GMAT to gain access to virtual education to tackle your studies and startup at the same time.
Entrepreneurs who went digital were the only ones who successfully retained their market existence last year. Marketing campaigns are now run via mobile phones, emails, social media platforms, etc., reaching customers digitally rather than going door to door. Several service providers have even evolved their services to be contactless.
2. Shift Towards Remote Working
One of the biggest changes is the shift of workstations from offices to remote locations. Offices have now been shifted to home lounges from high-rise buildings, and “work from home” is the new slogan. If businessmen cannot meet people in person, they have found a way to work remotely. Virtual meeting rooms like Zoom, Microsoft Teams, and Google Meet are on the hotline since then.
Remote working has provided multiple benefits to the employees as well, like work-life balance, saving transportation costs, and an open room for time management. But, on the other hand, some entrepreneurs faced deterioration in work effectiveness due to remote working due to the addition of domestic responsibilities. According to a survey done by Kings College London, almost 22.6% of entrepreneurs faced difficulties due to such responsibilities. But, entrepreneurs must adapt to the need of the hour to ensure the success of their business.
3. Worldwide Supply Chain
The commerce and procurement sector is connected worldwide. This community took disastrous effects from restrictions over the international borders. It was a dire issue for supply chain executives when they could not communicate with vendors in the virus-affected zones. Most of these executives had their supply chains linked to the Chinese industry. Unfortunately, it became the center of covid-19 and abruptly disturbed the supply chains of every scale. Shortage of goods and materials caused an immense reduction in the productions of electronic and automobile industries. Production hubs like Taiwan, Korea, Indonesia, Vietnam, and India used to outsource their products from China. As a result, they faced a significant reduction in their entrepreneurial activities. The scarcity of supplies led to numerous challenges for the majority of the industries in meeting their targets. Supply chains have begun to gain momentum recently, but promising forecasts cannot be made yet.
4. Challenges For Small Scale Entrepreneurs
Since the pandemic, it has been a difficult time for small-scale entrepreneurs. Covid-19 has brought agonizing challenges to the newbies, and the majority of them are struggling with their businesses. A study by the Asian Institute of Research declares that 41% of small-scale entrepreneurs fell in the red zone during the pandemic and lost control over their cash flow. It was also seen that 20% of the startup got their commitments declined by investors. In addition to that, 53% faced a slowdown in the process, while only 27% were able to function normally.
In addition to this, almost all of the startups had to reduce their expenses. Some entrepreneurial firms even recorded a reduction of 76% in their operational costs. Almost 70% of the firms had to nullify contacts with their full-time employees, which affected their workmanship.
You can observe entrepreneurs enjoying hikes in their revenues during this pandemic. This is because they are the ones who have adapted to change and have stayed resilient. The essential step for staying resilient is to accept that you have certain boundaries, and being rigid won’t help much. This approach will lead you to regain control over the aspects that you can influence rather than dwelling on constraints that you can’t control.
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