The Role of Startups in Economic Recovery

startups

The operations of many innovative startups and SMEs worldwide have been facing the existential threat since the COVID-19 outbreak. However, it was the existence of e-commerce, video-conferencing, and digital health startups that made possible the unexpected switch from what once was the standard workplace or shopping experience to the new COVID-19 normal lifestyle. While travel, transportation, accommodation, and even 3D industrial printing startups faced difficulties because of lockdown measures, reduced financial reserves, lack of funding, diminished demand, or even logistical or bureaucratic issues.

According to a survey on the impact of the COVID-19 on global startup ecosystems, released by startupgenome.com in April, over 40 percent of startups had only three months’ worth of financial reserves.
Moreover, 74 percent of startups had to terminate full-time employees. At the same time, 74 percent saw a decline in revenues, while only 12 percent of startups saw their income increase since the beginning of the crisis.

Like all the previous crises, the coronavirus will be no exception when it comes to the opportunities that it will create for startups and small and medium-sized businesses. All will depend on the industry where they’ll operate and their ability to get acclimated with the new coronavirus reality.
With hundreds of thousands of jobs going remote, more people would consider returning to their hometown or living in less expensive areas. Freelance or full-time remote employees have already been a trend for tech startups. Now it’s becoming the new norm among tech companies. This will give people and companies the opportunity to go for a global workforce/workplace.

On one hand, startups seem to be the most adaptable businesses to the current and post-coronavirus situation. The crisis has shown a need for fast-adapting and creative businesses.
Such startups need to be ready to seize their moments as other successful enterprises have done during previous crises. The new founders can be youth, young adults, or even adults that have enough time and have found a good opportunity to grow a business. Besides, time and funding they will need a set of entrepreneurial skills such as opportunity recognition, problem-solving, creativity, dealing with uncertainty, emotional intelligence, as well as sustainability skills.
Learning entrepreneurship does not require pursuing a three-year study program. You can do it in a short period yet at your pace at the Entrepreneurship Campus. Take our entrepreneurship online training and gain the skills for creating good projects and ideas.

According to the World Economic Forum, the global startup economy was valued at 2.8 billion dollars in 2019 and it has about three to four times faster than the rest of other economies. Such figures highlight the importance of startups’ role in economic recovery. Given their small size, startups, and SMEs and fast growth, startups have been driving long-lasting good jobs. Tech startup communities are known as promoters of gender equality and help to reduce the gender gap in a sector where women are not so much involved. More women in tech startups contribute to increasing access to education and digital skills among girls and women.
Innovative startups can become successful in every sector from healthcare, to agriculture and food security both in developing and rich economies.
What type of startup idea would you propose to promote economic growth and job opportunities in your area? You can join the Entrepreneurship Campus global network of innovators and create an idea of how people in your area or country are trying to innovate. If you already have an idea or project that promotes Sustainable Development Goal 8 or any of the 17 SDGs, join the Citizen Entrepreneurship Competition.

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12 Comments

  1. In fact, l’m urging and motivating all campus members to read and reflect on this blog now. It is so plausible!

  2. I want to ask all campus members this question: do you all know that the above article posted today align SDG 5?

    I want all of us to read it meticulously now.

  3. I want to ask my co budding campus members: do we know that the Impact of COVID-19 Crisis: Insights from Global Startup Survey with the Voice of the Entrepreneurs is
    41% of startups globally are threatened in what we call “red zone”: they have three months or less of cash runway left. Many very young startups live with only a few months in cash—29% were in that situation already before the crisis—but the crisis put 40% more of them in that precarious position?

    i motivate all to read this sensational article now!

  4. The above article in the blog: The Role of Startups in Economic Recovery, have inspires me to educate my fellow friends in my communities.

  5. this is the 30th blog since the competition of 2020 has just resumed on May 4: I also want all campus members to understand this concept:

    On one hand, startups seem to be the most adaptable businesses to the current and post-coronavirus situation. The crisis has shown a need for fast-adapting and creative businesses.
    Such startups need to be ready to seize their moments as other successful enterprises have done during previous crises. The new founders can be youth, young adults, or even adults that have enough time and have found a good opportunity to grow a business. Besides, time and funding they will need a set of entrepreneurial skills such as opportunity recognition, problem-solving, creativity, dealing with uncertainty, emotional intelligence, as well as sustainability skills.

  6. Smart entrepreurs see an opportunity whereas others see problems. The COVID-19 is a reality, and it is even the case that many decision makers in the politics think that the pandemic will stay with us for quit many years as long as there is no vaccine available. In the meantime, life has to go on. New business have to be established to bridge the gap between the rich and the poor aggravated by the COVID-19. Within a framework of good macroeconomic policies, individual startups are indeed expected to seize the chance and create new businesses that will kick-start the economy and drive growth. Everybody can do it. All we need is a vison. How to reach a certain goal, we can learn it. We can create a new idea that will respond to a certain need. We at the Citizen Campus, we are already in the process, and many of us will survive the current situation. Crises have always existed, and I believe the COVID-19 pandemic is not the last one. The resilience is the master weapon to respond adequately to an economic downturn. Moreover we have to break with the culture of “we’ve always done it that way”. An entrepreneur who wants to succeed should re-create himself and dare take risks even during the COVID-19 Crisis. The time is now. Many jobs have been lost in in various sectors and household incomes have fallen miserably. Let’s take the lead and make a difference.

  7. Smart entrepreurs see an opportunity whereas others see problems. The COVID-19 is a reality, and it is even the case that many decision makers in the politics think that the pandemic will stay with us for quit many years as long as there is no vaccine available. In the meantime, life has to go on. New businesses have to be established to bridge the gap between the rich and the poor aggravated by the COVID-19. Within a framework of good macroeconomic policies, individual startups are indeed expected to seize the chance and create new businesses that will kick-start the economy and drive growth. Everybody can do it. All we need is a vision. How to reach a certain goal, we can learn it. We can create a new idea that will respond to a certain need. We at the Citizen Campus, we are already in the process, and many of us will survive the current situation. Crises have always existed, and I believe the COVID-19 pandemic is not the last one. The resilience is the master weapon to respond adequately to an economic downturn. Moreover we have to break with the culture of “we’ve always done it that way”. An entrepreneur who wants to succeed should re-create himself and dare take risks even during the COVID-19 Crisis. The time is now. Many jobs have been lost in in various sectors and household incomes have fallen miserably. Let’s take the lead and make a difference.

  8. I urges all campus members to read and follow chicken’s suit and comment above. Do you know, that his article is very rich ? Why can’t you make a simple step to read it, it will leave a sustainable impact in you, thanks!

  9. This article has increase my motivation to do more. I encourage all campus members to read this article

  10. Starts up sure fill a vital position when it comes to econmomy recovery. Though starts up have financial challenges, but when finally implemented, the provide a viable means of resilience.

  11. I recommend my fellows to visit this blog regularly and get hints and facts concerning various issues that needs us to create sustainable solutions especially during the COVID-19 pandemic. ”Don’t stay idle in the lock downs, Be the change that the world needs for sustainable development”

  12. To resolve and get out from this situation, I have planned a sustainable startup which will give opportunity to anyone to create source of income from home.

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