In the early months of the Covid pandemic, there was tangible fear among startups and small businesses, with many justifiably concerned that they would run out of money very quickly as revenues became affected by the various lockdown measures introduced.  As recent research from King’s College London illustrates, however, this pessimism was not experienced by all.

The study, which examined how entrepreneurs in India fared during Covid, found that around 60% said that their businesses had benefited from the pandemic.

While the study was only conducted with 107 entrepreneurs in India, it was part of a wider study that was undertaken across 23 countries, which the researchers believe gives broad credibility to the findings.

Threats and opportunities

The study found that while half of the entrepreneurs found that the pandemic had put the very existence of their business at risk, around 72% had managed to adapt their business in order to survive.  These measures were regarded as successful by many, with 85% of the entrepreneurs confident that they would hire new employees in the years ahead.

Many of the startups benefited from the widespread digitization of society as a result of the pandemic, with significant changes in consumer behavior presenting various new business opportunities.

This meant that despite Covid forcing a large amount of change upon the entrepreneurs, the study found that their life satisfaction and stress levels were largely the same as they were before the pandemic.  This was often because the pandemic had encouraged the entrepreneurs to exercise more, sleep better, and practice mindfulness to buffer the stresses they experienced.

“Our survey paints a picture of short and long-term opportunities but also the vulnerability of Indian SMEs and entrepreneurs in the COVID-19 pandemic,” the researchers say.

“Many face real challenges to sustain their business going forward but we find four trends for the post-COVID economy that can help Indian SMEs to thrive: digitalization; multi-sectoral collaboration; localization; and prominence of inclusive businesses and support structures.”

The researchers believe that the agility that is such a fundamental part of entrepreneurship was a key factor in the ability of many entrepreneurs to weather the Covid storm.”

“Globally we saw over two-thirds of entrepreneurs adapting the plans for the business and 40% seeking out new opportunities,” they conclude. “While the stresses of the pandemic are clearly visible for the entrepreneurs and their businesses, there is also much resilience and thus hope for a thriving post-COVID economy.”