How the Pandemic Helped Entrepreneurship - 3 Ways
As evidenced by the fact that a fall in company creation followed all but two of the recessions of the last century, individuals might become cautious and disheartened during times of economic instability. According to the Centre for Entrepreneurs, the Covid-19 epidemic did, however, lead to an increase in the creation of new businesses, which increased by 13% in 2020 to a record high of 772,002.
The number of businesspeople willing and bold enough to take that jump increased even though the epidemic clearly made it considerably tougher for many aspiring entrepreneurs and small enterprises to get off the ground and survive.
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It's a fantastic moment to consider the art of entrepreneurship and how the exceptional circumstances of recent years have fostered people's entrepreneurial spirit and allowed new enterprises to thrive.
3 Ways Pandemic Helped Entrepreneurship
1. Companies with genuine goals
The pandemic's challenging and unpredictably changing conditions changed how people behaved generally and caused issues that needed to be resolved. In this approach, the pandemic offered advantages in the form of chances to close market gaps.
Beginning company owners were able to take advantage of these chances by creating organisations with genuine goals and providing goods and services that addressed current needs. For instance, a large number of first-time business owners sought new endeavours in online shopping, and these businesses accounted for 20% of the surplus registrations at the time.
Numerous businesspeople recognised possibilities in the shifting consumer preferences, such as Mallika Basu of SIZL who was able to address a market need "for high-quality spices that are conveniently packed for home chefs." Especially during the lockdown, she observed that "home chefs struggle with recipe ingredients and mealtime creativity" and was able to fill this demand.
2. Regaining passions
The epidemic provided time for contemplation and allowed people the mental space they needed to reevaluate what was important to them since many people were furloughed from work or worked from home and spent more time with their close family. Many passion projects—businesses that would not have otherwise gotten the time they required or deserved—were born as a result.
More passionate and enthusiastic pitches from entrepreneurs result in a 26% increase in investor interest, demonstrating the financial benefits of drawing inspiration from the things that make you happy in addition to increasing work happiness.
Alessandro Savelli started his artisan pasta delivery service as a result of his "slightly selfish" love of food after the failure of his prior company. When asked about his sources of inspiration, Alessandro says, "This time, I was particularly concerned that my business would produce a product that felt intimate and integral to my culture."
3. Choosing to be sustainable
Many entrepreneurs were moved by their own experience with the effects that an abrupt shift in human behaviour may have on the environment. The lockdowns reduced air pollution in UK cities and encouraged animal activity, which led to a renewed appreciation for our natural environs.
As a result, epidemic enterprises showed a stronger dedication to sustainability. According to a recent study, firms founded during the pandemic are 20% more likely to include sustainability in their fundamental beliefs than those founded before it.
Across a wide range of industries, entrepreneurs are playing a significant role in raising environmental awareness and enacting change. Examples of innovative, sustainability-focused firms range from sustainable furniture to sportswear.
The epidemic caused people to think about their houses and interiors, among other things, according to Charlotte Cochrane of the limited-edition furniture business Twisted Loom. This tendency has led to more ethical spending and purchases made for longevity rather than the short term. People have begun to take into account the quality and origin of the things they purchase.
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