Start-ups have emerged as core drivers of economic development and job creation, and also serve as a catalyst for disruptive innovation. India has the third largest start-up ecosystem; Y-o-Y growth is expected to be 12-15% steady; India has around 50,000 start-ups; some 8,900-9,300 of these are tech start-ups. Alone, 1300 new tech startups are born in 2019, indicating that 2-3 tech startups are born each day. Startups were able to create about 40,000 new jobs throughout the year, raising the overall number of start-up jobs to 1.6-1.7 lakh. Startups continued to play a critical role in the economies of the coronavirus (COVID-19) crisis. Some innovative new entrepreneurs have reacted flexibly and quickly to the disease outbreak and have been instrumental in helping many countries move towards fully digital employment, healthcare and education, as well as providing medical products and services with creative solutions. However, most of the current start-ups are faced with significant obstacles, as they are more vulnerable to COVID-19 disruptions than the older ones. Especially in comparison to other small and medium-sized enterprises (SMEs), they prefer to engage in high-risk activities, face limitations in accessing traditional funding, and at best have a formative relationship with suppliers and customers. Many current start-ups face major risks as they are more vulnerable to risks caused by COVID-19.
Some of the risks faced by startups are:
(a) sudden or prolonged economic downturn will lead to companies considering significant budget cuts that eliminate discretionary spending;
(b) remote work, online education and social distancing will create demand for products and services delivered by the tech industry;
(c) change in investment patterns;
(d) barriers to accessing funding;
(e) pressure to reorganize working and collaboration structure;
(f) to provide the necessary infrastructure for all employees; and
(g) facing problem with initial contacts and follow ups.
Measurement of the current risk scenario will therefore improve and help start-ups to initiate sustainable action in an uncertain environment. Startups embrace corporate risk management initiatives and start developing the business strategy to reflect developments in the market. Start-ups can increase the ventilation of the workplace and enhance everyday hand hygiene and personal safety equipment for employees. Ensure that financial support for start-ups is available at all stages of their growth. These risks can be changed considering the future COVID global situations and the turbulent environment.
As now everything is slowly moving to normal, startups should take this opportunity to step back and make sure that they build consistent relations around individual jobs, team goals, and the company’s purpose. Now is the time to integrate well-being through every aspect of the design and execution of the work itself and to radically transform the work towards results instead of tasks. This would open up the opportunity for employees to live and perform at a high level. Startups can harness AI’s power to create a community of actionable knowledge-sharing and knowledge-creation that enhances organizational collaboration and enables the organization’s agility to survive and even prosper in disruptive, volatile, and evolving environments.
In the post-COVID world, the intent, potential, insight, and possibility are no longer forward-focused expectations but the truth of the here and now. Startups are presented with a choice between returning to a post-COVID environment that is merely an improved version of yesterday or creating a sustainable version of tomorrow. The threat is more than falling behind—it is the chance of never catching up.
Article by :
Amrita School of Business, Coimbatore