COVID 19 has caused adverse impacts on economic as well as social environments. Several small and medium-sized businesses are struggling to sustain in the market. The pandemic has also hindered several opportunities for many individuals all over the world.
Many skilled people this year have not been able to leave their homes due to global lockdown. Also, these people have not been able to leave their homes and got plenty of time with a limited amount of projects.
Several entrepreneurs believe that this is not the right time to start a new business. On the other hand, some believe that this is the perfect time to pursue an entrepreneurial journey and redefine success.
Digitalization and digital literacy are said to be the best approach that can be used to recover the global economy. The current market scenario has fewer jobs and more and more skilled unemployed youth. Hence, the sense of creativity and innovation will lead to an outcome with more and more jobs and success for the next generation.
Entrepreneurship is said to be the best way to try an innovation in business.
The global pandemic has resulted in the closure of several small and medium-sized businesses. The United States alone has about 31 million small businesses, which create about 1.5 million jobs every year. However, the State of Small Business Report, May 2020, says that almost 31% of the small businesses closed due to the pandemic.
Small businesses play an important role in developing a strong economy. The rapid fall of this business harm the already struggling economic state of the country. Therefore, the small business needs to bring about innovation in business to overcome the difficult times.
For instance, there are several small businesses across the fashion and styling industry that are now producing masks, sanitizers, and other products. They have carefully observed the market trends and are working to provide goods in the market which are facing shortages due to the pandemic.
Such a shift in the business products and services will eventually help it to survive in the competitive market but also will provide employment opportunities.
The 1990’s faced similar economic downtime in the global market. While many of the companies faced a failure, one organization took this as an opportunity and raised to success in the global market. This was General Motors, which is today one of the most successful automotive companies on the globe. The company is now valued in millions.
The small and struggling companies can take inspirations from General Motors and derive new and innovative ways to make their place in the market.
Digitalization and Digital Literacy
Digitalization caught the immediate attention and significance in the presence of a global pandemic. However, digitalization works only in the presence of digital literacy.
Communication platforms such as Zoom and Skype were used at the maximum at this time, which were never imagined to be used as a means of communication or meetings in the case of small businesses.
There are several people who have never used Zoom and might have required training to work remotely for their company. Digital literacy here becomes of utmost importance to carry out the business activities smoothly.
Global Need for Digital Literacy
Countries all over the world are facing an economic recession. Several companies in the United Kingdom are emphasizing digitally-driven work. This is because of the reason that many small businesses were shut down or adversely affected because of the pandemic. On the other hand, many of them prospered due to their digital presence and digitally based business activities.
Technology and innovation are going to rule the industry for the coming next years. This is also the reason why many countries are taking initiatives to strengthen their digital presence.
For instance, a recent expansion in technology took place in the United Arab Emirates and India, where an economic relationship was developed to leverage the newly developed infrastructure. The presence and emergence of digital portfolios in Abu Dhabi is a prime example of digitalization for the future.
Africa is also taking initiatives to spread awareness about digitalization and its business effects in the global markets, especially for the youth who fall under the age of 25 years. These initiatives will help the youth to connect Africa with the rest of the world. The increased digital workflow will help the African youth to develop industries and technology in fields such as education, agriculture, as well as healthcare.
Digitalization will help the nations to develop a better tomorrow. An entrepreneurial spirit accompanied by innovation will certainly solve some pre-existing challenges and help the inspiring young entrepreneurs to accelerate in their business.
Source – Forbes