What to do if a global recession follows COVID-19
The outbreak of coronavirus has had a devastating impact on people across the world. Countries are on lockdown, healthcare systems are under enormous strain, and businesses are closing doors.
Last month the International Monetary Fund (IMF) warned the world that it faces its worst recession since the 1930s, and more and more economists are predicting a major global recession imminently.
A global recession could be challenging for aspiring entrepreneurs, business owners, and students graduating from business school. However, an MBA in Entrepreneurship can help prepare students to thrive despite an economic downturn. Read on to discover some of the ways that aspiring entrepreneurs can continue to innovate throughout a recession.
There are a number of powerhouse companies that can trace their roots to a recession, including Apple, Microsoft, Walt Disney, Electronic Arts, and FedEx, to name a few. What’s more, there are a surprising number of advantages to starting a business during this kind of period.
Firstly, a recession is usually a time of change. People and businesses may be looking to change suppliers or agencies in search of better value. This means that smaller startups that offer a low-cost alternative will become more appealing and may be able to successfully challenge the market leader.
Secondly, what startups lack in size, security, and profits, they make up for in speed and flexibility. A small-scale startup will find it much easier to adapt its offerings compared to a large global corporation. Students graduating from business schoolduring a recession should not hesitate to realize their ambition and start something new.
During a recession, unemployment figures tend to jump. Some of the top companies in the world will be forced to lay off employees to survive, meaning that aspiring entrepreneurs will have access to an exceptionally skilled talent pool.
You could argue that a recession is the perfect time to build your team, as a lot of great minds with years of valuable experience are entering the job market. Professionals who would normally choose the salary and security of a large corporation might be more open to working for a startup. In addition, there is no shortage of networking opportunities for students enrolled in an MBA program with a top business school like WU Executive Academy.
A recession should be a time of reinvention. Business owners and entrepreneurs should be prepared to refocus their business and adapt to the current climate. For example, Covid-19 has forced many businesses to move online.
As well as this, businesses should consider how to raise their profile using PR and marketing. Those that are likely to do well post-lockdown are those that have engaged with audiences and made an effort to keep their brands and communities alive. A strong, recognizable brand can benefit a small business throughout a recession and beyond.
Do you want to find out more about an MBA in Entrepreneurship?
Contact WU Executive Academy to learn more!