Challenges and Opportunities Faced by Startups During the Pandemic as Cited by Jason E Fisher

During the COVID crisis, the start-ups are still playing a crucial role in keeping the economies from drowning fully says Jason E Fisher. It may be mentioned here that start-ups are the main drivers of growing economies and generating employment. They serve as a catalyst for innovation and account for 20% of job opportunities.

It is commendable to see that as compared to the larger industries and entrepreneurs, these start-ups have very fast adapted to the new changes that came into effect due to the pandemic, which also meant shifting gears to a much more digital mode of operating. This trend is evident in the case of start-ups that are dealing with healthcare, medicine, education, and any kind of job involving digital migration.

Jason E Fisher highlights the challenges faced by start-ups during COVID-19

The majority of these companies face challenges since they are vulnerable to shock. They tend to suffer from a shortage of funds, face constraints, and often must rework out strategies. With the suppliers and the consumers to suit the need of the hour.

Pandemic is a time when there is a lot of economic uncertainty, revenues become erratic. There is a decline in demand for products and services. Which causes adverse effects to their profits. Under such circumstances, the start-ups require financial assistance, especially for their short-term liquidity requirements.

What are the opportunities start-ups can enjoy during the pandemic?

Many countries have introduced measures that focus more on start-ups. For instance, France has arranged for EUR 4 billion funding for supporting start-ups. So that they do not face problems with liquidity. Germany has taken an initiative, wherein, it has introduced a tailor-made program to help these companies facilitating “venture capital financing”.

This Coronavirus pandemic has proved to be a challenge for not just the existing ones but the new ones as well. During the crisis period, these companies do not get too many registrations or orders.

As far as starting of newer companies is concerned. France has stated that there has been a drop by as much as 25% since March 2020 in the creation of new firms.

The US Weekly Business Formation Statistics has also confirmed reports on similar angles. That there has been a reduction in the formation of new companies. Even if reports suggest that there has been a drop in the registration of new companies. Yet there are instances that prove that many such start-ups have successfully emerged from such crises before.

Few examples of those companies that were formed immediately. After around the time of the global crisis include Groupon, WhatsApp, Pinterest, Airbnb, Uber, and Dropbox.

Jason E Fisher says that during times of recession a company can either drift away or rise to the challenge and emerge stronger than before.

If a company can adapt to the new changes like living up to the consumer expectation. Like maintaining social distancing and contact-less delivery. The start-up will establish itself as a pioneer even during this pandemic. Which acts as a springboard for future setup.

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