By Abdulafeez Olaitan, UNILAG
Following the wave of COVID-19 pandemic, revolutionary measures aimed at reforming emerging markets’ economies continue to loom. The detriment of the pandemic is inexhaustible. While the health sectors are intensely engaged, many other sectors have had to exercise lockdown procedures and policies accordingly. These policies—though were precautionary measures against spread of the virus—greatly affected entrepreneurs; startup businesses fastidiously.
The pandemic is said to have “plunged global economy into the worst recession since World War II,” according to The World Bank in its June 2020 Global Economic Prospects. Consequently, the global economy is set to shrink by 5.2%.
Startups strive so hard to scale their businesses because emerging markets are also struggling to stimulate their economies since governments and central banks have been necessarily cautious when providing fiscal and monetary stimulus to prevent financial disruptions.
Most emerging markets are facing higher debt burdens due to loss of revenue and this is significantly adding to risks. Considering a nation that relies on a very strong network of export-focused SMEs, a recovery assistance or debt relief would go a long way in reinvigorating their young people for a continued chain of business operations. Young entrepreneurs require various resilience strategies in order to prevent further hiatus.
Looking through the spectrum of startups, young entrepreneurs are heavily penetrating emerging markets and this has served as an eye-opener for a reasonable amount of other people who lack the courage to venture into commerce. Due to the pandemic, entrepreneurs have been forced to employ various technological innovations in bringing their products and services closer to potential consumers.
The flood of advertisement on the traditional media is overwhelming, likewise, the drastic increase in social media presence of startups. This sudden embrace of digital marketing turns out to be a blessing for many startups as it exposes their commodities to a greater audience than they could have had the opportunity to reach through their regular operational routine.
Since the occupancy of internet facilitates reaching wider audience of customers, rebranding and reorganizing can make a lot of difference in making a startup business stand out.
However, proper care needs to be taken during rebranding process as it can turn out negative if the demands of customers are not met afterwards. More reason business owners should have a good customer relationship management.
When we say customer relations, it refers to keeping track of everything that is related to customers making it easy to manage their queries. This system keeps track of orders from potential customers, gets data on the ones who made purchase in the past and uses all these information to keep old clients and get new ones.
It is quite interesting to witness a crucial rise in e-commerce. With different logistics companies in operation and an astronomical increment in the numbers of dispatchers available, it is safe to expect more revolutionary improvement.
All in all, adaptation is very important in business to minimise setbacks. The inability of a business to cope with environmental conditions will likely cause it to fail. In light of COVID-19, it is great to still see startup businesses thrive unwaveringly.