More than 70% of start-ups have had to terminate full-time employee contracts since the start of the COVID-19 pandemic;
Many entrepreneurial businesses have pivoted to meet new needs for goods or services borne out of the crisis;
he way entrepreneurial business models and approaches are affected by the pandemic will have an impact on how entrepreneurship is perceived as a job choice in the future.
As sources of finance dry up, more than 40% of new ventures will fall into the so-called “red zone” with only enough cash for three months or less of normal operations. People and companies have devised new ideas to respond to existing or emerging needs insufficiently addressed by governments and incumbent institutions.The picture of how entrepreneurs and their systems have been affected is more nuanced than we might, at first, believe, but understanding it is important: how it’s being (re)shaped today will have long-lasting effects.The UK government launched a £1.25 billion rescue package to help start-ups, emphasizing support for “firms driving innovation”, “the unicorns of tomorrow” and “the technology success stories of the future”.Yet while these innovative start-ups are undoubtedly essential for the future of innovation and supporting them is critical, the current COVID-19 crisis also shows the importance of small businesses with more incremental approaches to innovation. Some new-born entrepreneurs and start-ups have been more opportunistic during the pandemic, pivoting their businesses through some kind of “repurposing” and redirecting existing knowledge, skills, people and networks to new needs that have emerged. Many of these entrepreneurs come from different knowledge domains and this poses a problem for those wanting to do business with them: how can they judge their trustworthiness or legitimacy without a past reputation in that domain?