With the surge of COVID-19 cases in almost all parts of the world, major industries have come to a halt. It is having a large-scale impact on the global economy and is resulting in a paradigm shift for businesses. There is no inkling as to when the situation will be returning to a comparatively normal state and the longevity of the catastrophe remains unknown.
The Indian start-up environment is recognized as the strongest in the whole world. The main contribution to the success of business startups is the growing rate of domestic as well as international investments. However, from the data obtained from Venture Intelligence, it was observed that startup funding in March 2020 had gone down by half as compared to the previous month. Due to the prolonged lockdown in many parts of the world and the decline in the economic scenario, a steady recession in funding activities has been noticed.
Startups and businesses need to tackle this situation with wit and get habituated with “The New Normal” to recover from this dire situation. This has put such ventures in survival mode. Business mentors are suggesting startups to ensure that they have sufficient capital to weather this crisis. Pay cuts are becoming inevitable and are mostly being done in the pyramid structure, starting from the highest-ranking employees.
Despite such drastic conditions, the pandemic has led to the advent of particular opportunities that were not as popular in the pre COVID world. For example the excessive demand for applications requiring artificial intelligence, robotics, and the internet of things in shopping, manufacturing, virtual sizing, and also in many fashion-related industries. There is an exorbitant surge in online shopping since people are avoiding malls and other stand-alone markets for the time being. This is creating a revolution in the manufacturing sector. According to data obtained through extensive research, it is seen that online startups implementing the pull-based strategy are being funded more by venture capitalists during this time, in comparison to offline startups.
In the post COVID world, it is evident that solidarity will be holding a strong value for survival. The Government, businesses, and individuals will need to come together and form a strong partnership to tide over this critical situation. Many business competitors are collaborating during this acute crisis and working together. There is a tremendous boost noticed in the pharmaceutical companies in the past few months. This resulted from the joint effort of the companies who have stopped their usual production and are now involved in finding effective vaccines, medicines, and other types of equipment like ventilators to combat this situation.
Hence the paradigm shift which will occur post-COVID will only be positive if companies choose to show solidarity in these times of distress and work together for survival. To brace themselves for the aftermath of this crisis, companies need to adapt, prepare for drastic changes, and quicken their transformation to associate business to a superior purpose.