How to Start a Business in a Time of Crisis?

When talking about ways to eliminate growth crises in young firms, Guenter Faltin says in his book Brains versus Capital that each growth stage creates its own crisis. With this fact in mind, young and aspiring entrepreneurs probably wonder how to start a business that can grow while already being in a global crisis.
Based on experiences from previous financial recensions, most people support the idea that every crisis creates a wide range of opportunities for startups that can drive successful business outcomes.

Back in May, the New York Times published an article asking if the pandemic was/is the right time to start a business. According to the cases mentioned in the article, the health crisis can be the proper moment to start a business for those that have the right idea. The coronavirus pandemic forced many businesses of different sizes all over the world to shut down or implement survival strategies to manage changes. On the other hand, some saw an opportunity for business.
Based on the NYT article, the advantages that those people noticed during the crisis include reduced competition for resources, more available talent, low-interest rates for loans, affordable equipment, and important shifts in customer needs.
Whether it is a useful highly-needed service or a product it’s essential to notice key changes to customer demand. Many existing companies shifted their focus according to customer demand and managed to remain agile.

This is exactly what new startups are doing. They are focusing on the shifts that the pandemic created in people’s needs. What was successful before the health crisis, now might not be the same. Good health care and wellbeing remain a key factor. For example, people will buy more products and services on personal and house hygiene and sanitation. Hand wash, mobile sanitation for houses, and commercial spaces have seen a rise in demand. Moreover, people are becoming more practical in their choices. Those who have a shop or restaurant are looking for ways to keep up with safety protocols. Hence, they switch to furniture that easy to clean or arrange to conform to social distancing rules.
This is what Faltin highlights in his book: “Encountering a problem, considering a variety of routes and choosing the most practical – this type of mental agility can be taught.”

Back to startups born in times of crisis, the Europas Awards just announced the winners of the 2020 edition of innovative startups. Previous winners of this award include Spotify, Soundcloud, Babylon Health, etc. The winning startups come from categories that are closely related to the pandemic response such as agriculture and food, climate/green tech, education, public/civic, health, mobility, social innovation, sustainability, and many more. These are tech startups, yet it does not mean that high-tech has to be the main driver when launching a startup.
“Innovative startups are needed but this doesn’t mean they have to be hi-tech. Relying exclusively on hi-tech is like investing all of your country’s athletic resources in a single sport, overlooking the fact that you could perhaps earn medals more easily in other areas because there’s less competition there,” Brains versus Capital points out.

This is important to understand because problems and their solutions differ from one country to another. As professor Faltin says in his book: “Entrepreneurship offers you the opportunity to work with unconventional ideas and perspectives, and then through them to participate successfully in economic life. A “culture of entrepreneurship” purposely includes artists, mavericks, and people with a sense of social commitment, who in the past saw little opportunity to participate actively in the economic realm. Our society needs entrepreneurial initiatives that not only tease out new needs but which respond to existing problems with economic, social, and also artistic imagination.”

If you like this mindset, you can take the free entrepreneurial training at the Entrepreneurship Campus. The training includes two courses, one based on Brains versus Capital book, that helps aspiring entrepreneurs gain the necessary skills and build a mindset to recognize and develop ideas and projects. The second course focuses on sustainable entrepreneurship.
If you feel challenged by the training, you can join the Citizen Entrepreneurship Competition in the youth or adult category and give yourself the chance to get started with entrepreneurship.

Source: Brains versus Capital 

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21 Comments

  1. Campus members it is not all about what Professor Guenter Faltin said, that each growth stage create it own crisis, but l really urges everyone to read this sensational and unconventional book.

  2. Campus members, do you know entrepreneurship offers you the opportunity to work with unconventional ideas and perspectives and then through them to participate successfully in economic life?

  3. Anonymous

    26.06.2020 · Reply

    As explained in this essay, every business has ups and downs, but even at that, there are ways we can still become an entrepreneur even when things are tough. A big question is how?
    We should all know that a crisis can cause many businesses to fall, whereas, it can also create chances for good thinkers to start up something. These people would see the advantages the crisis has brought to them; competition for resources are less, cheap equipments, more talents etc. So, distinguished campus members, do you still think crisis is a barrier in starting up a business?

  4. gregoryanayochukwu

    26.06.2020 · Reply

    My fellow members scattered around the world, as young aspiring entrepreneurs, we should know that periods of crises are not periods of business losses but opportunities to discover new ways of making profit. Businesses can remain even in the era of crisis. Did you know that?

  5. Campus members do you know that the New York Time comment that: during this time of pandemic, that there is reduced competition? Read the above article please!

  6. Campus members do you know that the most imperative thing l learn from this article is from Ms. Field comment on how she take her stand like Lynne Twist of California to establish a start up that will rescue many lives. In fact my fellow global citizens in this platform, l want you all not to see this pandemic as the greatest enemies, like complexity, but rather see that the pandemic crises can whimsically stems out sustainable recipes for our economic growth via sustainable development goals achievement.

  7. Campus members, i learnt that entrepreneurship is very exciting and fufiling. They are always at work which is very healthy for any economical growth in the world

  8. During times of crises, businesses are shut down, but not up to the extent of no food stuffs to be sold–and to be purchased in order to be consumed by consumers. The essence of this saying is as an entrepreneur, one should be able to work with unconventional ideas and perspectives, and then through them to participate successfully in economic life. Do you agree with me?

  9. Anonymous

    28.06.2020 · Reply

    Crisis has made a lot of business owners to lose hope while others key in to some certain protocols and ideas to water the growing flowers; like narrowing their focus to meeting their customers’ demands. In essence, a time of crisis can either be a blessing or curse to business owners.
    Do you agree?

  10. Campus members do you know that the best thing for all entrepreneurs to do now is for all to read this wonderful and plausible book title: Brains versus Capital

  11. I want all campus members to realize today that with Professor Gunter Faltin’s directions through his life’s book, ( Our fate will strike again) My contestants 2020 do we agree? Please l want all campus members to read this and comment on it, thanks for complying!

  12. Campus members I think restructuring is key at the moment of crisis to meet customer’s demand and sustainability

  13. Anonymous

    29.06.2020 · Reply

    My campus members, as we all know, the times of crisis would surely come by, but let us understand that there’s always a solution to any problem provided we are able to think in an innovative and unconventional way; a way that would bring more business opportunities even with the existence of crisis.
    Do you agree?

  14. Entrepreneurs should expect these: drawbacks, short comings, problems and crises because businesses are mercural. That’s why the ‘slow food system’ needs to be implemented before a business is established.

  15. Anonymous

    29.06.2020 · Reply

    Do you know that hi tech can be very helpful during a crisis but it shouldn’t be fully relied on, but rather we can use “brain beat capital” to work out ways???

  16. Brain beat capital all the way

  17. This is important to understand because problems and their solutions differ from one country to another. As professor Faltin says in his book: “Entrepreneurship offers you the opportunity to work with unconventional ideas and perspectives, and then through them to participate successfully in economic life. A “culture of entrepreneurship” purposely includes artists, mavericks, and people with a sense of social commitment, who in the past saw little opportunity to participate actively in the economic realm. Our society needs entrepreneurial initiatives that not only tease out new needs but which respond to existing problems with economic, social, and also artistic imagination.”

  18. My fellow 2020 contestants, do we know or should know that periods of crises are not periods of business losses but opportunities to discover new ways of making profit? Businesses can remain even in the era of crisis. Did you know that?

  19. Any time I looked and glanced through this article in our blog below; How to Start a Business in a Time of Crisis?

    Published on: 26.06.2020

    Only one imperative “thing’ always spring out of my mind; “How I wish all campus members and global citizens could buy this plausible book and use it effectively to create and build an equitable and sustainable and peaceful world? They will be easily have access to build their ideas and projects towards the above article. Do we agree amicably?

  20. Actually crisis and pandemics come with new opportunities inspite of its negative effects. In my country Nigeria there exist start ups in production of face mask, hand sanitizers and toiletories. However, there is unfortunately lack of access to loans even those who do need a loan have to spend weeks before accessing loans

  21. Indeed there are many business ideas and start ups following the COVID-19 crisis. There many MSMEs that have spring up to fill the gaps of needs during this crisis and there are helping alot. Many are into sensitization programmes on curtail the spresd of the virus, some are involve in food provision, some producing and marketting facemask, sanitizers and a whole lot of business ventures. Cisis have eventually served a purpose in many lives not just the negative impacts.

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