The Entrepreneurial Crisis & CoVid
Posted on October 20, 2020
We all have seen the memes and statements regarding 2020 and CoVid. I would say that about 90% of the people I have spoken with are tired and fatigued of everything that has to do with this year and the pandemic. Unfortunately, CoVid isn’t going away anytime soon and the same for all problems that existed prior.
One of the greatest needs that was needed before CoVid was entrepreneurship. In the 1980’s young businesses (less than 1-year-old) accounted for 15% of businesses and in 2015, they only accounted for 8%. Nearly all job creation during that time came from high-impact companies which has slowed the job market in the past 5 years.[1] This leads us to the entrepreneurial crisis: young companies are needed for job creation and market competition. I do not aim to belittle large or high impact corporations. They are important to societies and do provide a large part of employment, but they are also starting to show a trend of choosing profit over people. This was leading to a potential job creation crisis, a need for individuals and groups to start new businesses. In Nick Godfrey’s report to the OECD Global Forum, he states “Competition is central to the operation of markets, and fosters innovation, productivity, and growth, all of which create wealth and reduce poverty”[2]
Competition implies new companies being created to compete with other established companies. Henceforth, the entrepreneurial crisis has existed and was talked about before CoVid hit the world hard. The global market has struggled and limped over the past 7 months. Is there even an opportunity to even talk about the entrepreneurial crisis? Do people even have the resources and capital to start new projects and ventures when long-standing businesses are shuttering? While some may disagree, this may be the best time for entrepreneurs, especially if they will need physical space. In an article on Politico.com, Katy O’Donnell reports “commercial property sales were down 68 percent in the second quarter from the previous year”.[3] These property owners may disagree with potential tenants on value, entrepreneurs will own the buying power for the foreseeable future. Now is the time to take the risk because people are starting to venture out and return to as normal as a life as before. You can be there to welcome them and meet their needs & wants. Be the competition every business need. Be the job creators our world needs.
The entrepreneurial crisis existed long before the pandemic. CoVid is here to stay. How can we help you succeed in these turbulent times?
- Brian Horner
[1] Acharya, Nish (03/14/2019). A Progressive Agenda For Entrepreneurship And Job Creation in America. Retrieved from: https://www.forbes.com/sites/nishacharya/2019/03/14/a-progressive-agenda-for-entrepreneurship-and-job-creation-in-america/#3bba4ee57eb5
[2] Godfrey, Nick. (03/27/2008). Why is Competition for Growth and Poverty Reduction? Retrieved from: https://www.oecd.org/investment/globalforum/40315399.pdf