Highlights: Covid-19 created the huge challenges for the survival of Startups and Businesses and would remain for long time even after the novel corona virus ends. We will discuss about the future difficulties for the Startups after Covid-19 ends.
The future of Startups after Covid-19 ends is the biggest concern in everyone mind.The whole world is suffering from the pandemic Covid-19. The vaccine of Corona virus is still on trial period. Even after the discovery of the vaccine, the effect will remain for the long period. One of the biggest victims of that pandemic is entrepreneurs. The small businesses and new startups come in the top list of getting shutdown. As per recent surveys, many businesses would get shut down due to the long term effect of Coronavirus. Even the biggest market players like OLA, OYO, Uber, Airbnb also hit adversely. Right now every business is doing cost cut by firing thousands of employees from their organizations.
At the current scenario, big organizations have huge resources to survive in the current pandemic situation but small and medium organizations are helpless right now. Earlier most of the people wanted to be an entrepreneur but this pandemic put many doubts in their mind.
What will be the challenges to be faced by Startups after Covid-19 ends?
The small and new startups would face the various challenges after the Corona pandemic ends which we will discuss below in following points.
Problems to be faced by Startups
Downfall of Demand
The Corona virus is consuming the savings of people as the whole world is going through lock-down. Lockdown is enforcing people to use their savings or taking fresh loans just for survival. After that period, everyone would try to focus on earning money rather than spending it on non-essential items. It would create huge downfall in demand which would remain for the long period. Demand of product is the backbone of any business. Without demand there would be no business for that product. Declining in demand would directly impact on startups that have innovative ideas relating to particular product.
The Small startups have limited resources which they can utilize in their bad time. As this pandemic would remain for long time, it would be hard for the small organizations to survive in the long run. In addition to this, upcoming startups have to struggle more as they would have less resources than other established ones.
Lacking of Trust
Another setback from the Novel Corona Virus pandemic is people would not trust easily on the new ventures due to volatile market conditions. After the end of pandemic many big Corporate, market giants and businesses would fall. That fall would shake the trust of people in the businesses especially for new and small businesses. It would be more challenging for new and upcoming ventures to gain the trust of people after the end of pandemic in the volatile market.
The term Funding means to raise money from prospective investors for the working, growth and existence of business. Funding would be the biggest challenge that small and upcoming ventures would face as after the pandemic ends big investment firms and investors. They already lose their big chunk in the pandemic. They would hesitate to fund the new business especially in that volatile period where people would prefer to save rather than to spend in any new non-essential product.
After the funding issue, another big problem associated with the market is changing valuation. Every investor or Investor firm provide funding as per the valuation of business. Due to the current crises the valuation of almost every business would go to the bottom. Startup valuation would become more conservative which would cause harder to attract funding.
Difficult to find Co-Founder
Finding Co-Founder is the biggest challenge for any entrepreneur. After seeing all that risks, many upcoming entrepreneur would drop that idea and would look for the safe side i.e. Job. Yeah right!! Many young entrepreneurs would choose the safe side rather than on more volatile market conditions where the chance of success is lower than before. It would be difficult for the other young entrepreneurs to find the perfect co-founder for their business ideas. In short, people would choose jobs instead of startups.
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