The Coronavirus pandemic has not only affected the sanitary health of people around the world but it has also had a major effect on the global economy as well. Business ventures and entrepreneurs have surely instigated drastic changes to their organizations.
COVID-19 has paved the way for the digital transformation of all sectors and with most businesses switching to working from home there is a question to be begged – what does this say for aspiring entrepreneurs?
Entrepreneurs Shaping, And Being Shaped By COVID-19
An article by The European Sting in collaboration with the World Economic Forum has delved into how digital entrepreneurs will help shape the world after the COVID-19 pandemic. “The benefits of the digital economy will also see mass entrepreneurship spur on social mobility, and there will be greater economic participation from marginalized populations,” the article stated.
When starting a business, especially small businesses, there must be a thorough account of the unanticipated dangers and risks that might occur. One way this issue has been tackled is through the action of entrepreneurs when faced with a crisis — this is known as “entrepreneurial intentions” whereby the “desirability and feasibility of entrepreneurial action” is important towards reconstructing economic development and prosperity, as stated by an article on SAGE journals.
Fortunately, small businesses in Egypt have been protected as part of initiatives by the Ministry of Planning which include increasing the industrial units across varying governorates. Moreover, aiming to develop the young entrepreneur’s skills and capabilities, the Ministry of Planning also launched a project called ‘Rowad 2030’ that is directed towards establishing nine business incubators in artificial intelligence (AI), tourism, and business.
But with the digitization of the capital world and the increased facilitation of e-commerce that has been on the rise through the support going towards startups and entrepreneurs, COVID-19 may just be the blessing that passionate entrepreneurs have been longing for.
In a recent report delivered by Oxford Business Group, they stated that technology and digital firms are imperative for ensuring that services and goods produced remain at a good rate in relation to the changes produced because of social distancing and decreased workforce hours.
“Egypt’s digital startups were in a good position to respond to the pandemic,” said the Oxford report.
The report declared how the global economy faces a significant decline which insinuates the urge for innovative firms to be supported by pushing the startup ecosystem.
During these unprecedented times, young entrepreneurs are faced with varying challenges and obstacles which range from establishing a safety net to their employees, managing cash flow, and identifying new market opportunities. But to some resilient entrepreneurs in Egypt, the pandemic has been the perfect opportunity to initiate their startups.
What Is One Startup Doing In These Trying Times?
Tayarat is a kite startup that was launched two weeks ago by two aspiring American University in Cairo (AUC) students. The two students, in an interview by 925Egypt, shared how their idea to start a small business was never something they thought about before quarantine.
Laila Attallah, one of the founders said“this business was purely a COVID-19 aspired business, social-distancing was our first priority, so we started thinking about ideas that would not pose any risks, and then came to us the idea of flying kites,” Attallah told 925.
The two students examined the risks and reached out to peer networks and support from experienced digital marketers in order to properly launch the business. Attallah talked to us about the challenges they faced during the process of launching which she stated included their safety when buying the material, the branding on Instagram, price regulations, as well as cost-benefit analysis.
Attallah underlined that this product wouldn’t have been feasible in implementing without the time that quarantine and COVID-19 laid on their hands. The advisory opinions and support they sought from marketing companies were an asset on their behalf because the online world that was paved through quarantine aided their business.
The impact of the pandemic on startups is full of challenges and risks; however, it is through the diligent work and resilience done by the ecosystem in supporting innovations that helps startups.
