{"id":2346,"date":"2020-04-17T11:06:17","date_gmt":"2020-04-17T11:06:17","guid":{"rendered":"http:\/\/www.gronenonline.com\/_gronen1\/?p=2346"},"modified":"2020-04-17T11:06:17","modified_gmt":"2020-04-17T11:06:17","slug":"the-coronavirus-crisis-a-catalyst-for-entrepreneurship","status":"publish","type":"post","link":"http:\/\/www.gronenonline.com\/_gronen1\/2020\/04\/17\/the-coronavirus-crisis-a-catalyst-for-entrepreneurship\/","title":{"rendered":"The coronavirus crisis: A catalyst for entrepreneurship"},"content":{"rendered":"

Guest Bloggers:<\/strong><\/span><\/p>\n

    \n
  1. Klaus Meyer<\/strong><\/a><\/li>\n<\/ol>\n

    Professor of International Business, Ivey Business School, Western University<\/p>\n

      \n
    1. Carsten Lund Pedersen<\/strong><\/a><\/li>\n<\/ol>\n

      Assistant Professor, Marketing, Copenhagen Business School<\/p>\n

        \n
      1. Thomas Ritter<\/strong><\/a><\/li>\n<\/ol>\n

        Professor, Copenhagen Business School<\/p>\n

        \u00a0<\/strong><\/p>\n

        Originally published under creative commons licence at:<\/strong><\/p>\n

        https:\/\/theconversation.com\/the-coronavirus-crisis-a-catalyst-for-entrepreneurship-135005<\/a><\/strong><\/p>\n

        April 12, 2020 7.44am EDT<\/strong><\/p>\n

         <\/p>\n

        Throughout human history, crises have been pivotal in developing our societies.\u00a0Pandemics have helped advance health-care systems<\/a>,\u00a0wars have fuelled technological innovations<\/a>\u00a0and\u00a0the global financial crisis helped advance tech companies like Uber and Airbnb<\/a>. The present coronavirus pandemic will arguably not be an exception; entrepreneurs can be expected to rise to the challenge.<\/span><\/p>\n

        Businesses play a key role both in\u00a0helping society get through an economic crisis<\/a>\u00a0and in creating\u00a0innovations that shape society after a crisis<\/a>. So one key question is: how will the ongoing crisis influence future society?<\/span><\/p>\n

        While it\u2019s hard to predict the future, we can develop an understanding of what is ahead by analyzing current trends.<\/span><\/p>\n

        Businesses show citizenship, resourcefulness<\/strong><\/span><\/p>\n

        The global pandemic and associated policies restricting people\u2019s movements have caused major disruptions to many businesses. We\u2019ve already observed major shifts in business practices. Working from home is the new norm, while many personal meetings and conferences have been replaced by\u00a0video meetings and other virtual forms of communication<\/a>.<\/span><\/p>\n

        Read more:\u00a0<\/em><\/strong>The coronavirus is changing how we work \u2014 possibly permanently<\/em><\/strong><\/a><\/span><\/p>\n

        Some businesses \u2014 especially restaurants,\u00a0tourism operators<\/a>\u00a0and\u00a0movie theatres<\/a>\u00a0\u2014 have come to a complete stop. Others, like manufacturers of consumer goods, have seen a sharp drop in demand as consumers are either unable to visit shops or lack the spare cash for nonessential purchases.<\/span><\/p>\n

        The\u00a0short-term impact is likely different from the long-term impact<\/a>. Consumers may simply postpone the purchase of a new car or washing machine \u2014 but they may not want to buy the same types of services in the future.<\/span><\/p>\n

        Many firms have initially responded to the crisis not only by cutting costs but by engaging in new entrepreneurial activities. Around the world, we see examples of resourceful responses to the crisis: Distilleries in the\u00a0United States<\/a>,\u00a0Canada<\/a>\u00a0and\u00a0Australia<\/a>\u00a0started to produce hand sanitizers.<\/span><\/p>\n

        Fashion businesses like\u00a0Zara<\/a>,\u00a0H&M<\/a>,\u00a0Hedley & Bennett<\/a>\u00a0and\u00a0Trigema<\/a>\u00a0are producing protective gear, gowns and other supplies for hospitals.<\/span><\/p>\n

        Airline crews, including those employed by SAS, are being retrained to help out in hospitals<\/a>.<\/span><\/p>\n

        The\u00a0shortage of ventilators in hospital intensive-care units<\/a>\u00a0has not only motivated health-care companies such as\u00a0Philips<\/a>\u00a0and\u00a0Draeger<\/a>\u00a0to increase production, but also triggered\u00a0Canadian automotive suppliers<\/a>\u00a0and car brands\u00a0like Ford<\/a>\u00a0to produce the life-saving medical devices.<\/span><\/p>\n

        These examples show two common features.<\/span><\/p>\n

        First, companies are showing\u00a0citizenship<\/em><\/a>. They realize they have an interest in societal well-being, and that they may need to give up short-term profits for the benefit of society. Second, they are showing\u00a0resourcefulness<\/em><\/a>. They\u2019re developing creative responses to emerging challenges with scarce resources.<\/span><\/p>\n

        In combination, citizenship and resourcefulness can drive socially aware entrepreneurship.<\/span><\/p>\n

        Building foundations for the future<\/strong><\/span><\/p>\n

        Actions during the crisis will shape firms in the long run.<\/span><\/p>\n

        First, the\u00a0crisis creates opportunities for businesses<\/a>\u00a0to become more innovative. Facing external pressures, some business leaders are stepping out of their routines and comfort zones to become creative problem-solvers. Along the way, they rediscover their entrepreneurial spirit.<\/span><\/p>\n

        Some will continue to pursue opportunities first identified during the crisis. Perhaps some automotive suppliers will make medical equipment, while service providers integrate new online interfaces with their traditional businesses.<\/span><\/p>\n

        Second, reputations are built \u2014 and lost \u2014 during times of crisis. Companies demonstrating good citizenship by helping with shortages, or by making major donations, are also probably hoping that consumers will remember their actions when the economy returns to normal. What\u2019s more, treating employees well during a time of hardship enhances a company\u2019s\u00a0reputation as an employer<\/a>\u00a0and helps attract talent as well as building a loyal workforce.<\/span><\/p>\n

        On the other hand, there are also a lot of opportunities to ruin a reputation. Companies that treat their employees or customers badly during a crisis will face major challenges rebuilding when the storm has passed. Similarly, if corporate behemoths like Amazon\u00a0fail to provide reliable logistics solutions to small businesses right now<\/a>, then others will develop competing platforms. Those new platforms will not only enable buyers and sellers to meet, but will also integrate service providers to transport products in a timely and reliable manner.<\/span><\/p>\n

        Technology push<\/strong><\/span><\/p>\n

        Beyond existing firms, some sectors of the economy are likely to grow. New technologies can offer numerous opportunities as the crisis transforms the products or services they can offer.\u00a0Service businesses in particular are likely to see a lot of innovation in how services are created, packaged and sold<\/a>.<\/span><\/p>\n

        Recent trends in China offer a glimpse of what is feasible for businesses. For example,\u00a0online shopping and entertainment received a major boost<\/a>\u00a0during the coronavirus shutdown via online platforms like\u00a0Alibaba<\/a>,\u00a0Wechat<\/a>\u00a0and\u00a0their associated ecosystems<\/a>.<\/span><\/p>\n

        In the health-care sector<\/a>,\u00a0health-related smartphone apps<\/a>\u00a0are proliferating in China \u2014 and possibly soon globally. Artificial intelligence is helping\u00a0hospital emergency rooms<\/a>, while\u00a0virtual reality has moved from an entertainment tool to a valuable resource<\/a>\u00a0for technical training and maintenance.<\/span><\/p>\n

        Read more:\u00a0<\/em><\/strong>How China is revolutionising e-commerce with an injection of entertainment<\/em><\/strong><\/a><\/span><\/p>\n

        Companies that become competent and move quickly in these areas during the crisis will have a strategic advantage over their competitors in the post-pandemic economy. For example, whoever builds the most reliable and speedy logistics infrastructure for delivering goods to private homes during the lockdown is likely to gain loyal customers.<\/span><\/p>\n

        Consumer pull<\/strong><\/span><\/p>\n

        Customers \u2014 both individual consumers and businesses \u2014 are\u00a0becoming accustomed to new forms of business<\/a>, such as\u00a0online ordering for home delivery<\/a>. Their established habits have been disrupted, changing attitudes and expectations. For example, the\u00a0surge in video meetings<\/a>\u00a0creates comfort with this method of interaction, and users learn how to be effective in meetings without face-to-face interactions.<\/span><\/p>\n

        After the shutdown, many people will expect more integration of online and offline offerings. They will likely also be more at ease with using new technologies, especially video conferencing that can also reduce travel costs and carbon emissions.<\/span><\/p>\n

        Read more:\u00a0<\/em><\/strong>Coronavirus and the economy: We need green stimulus not fossil fuel bailouts<\/em><\/strong><\/a><\/span><\/p>\n

        It\u2019s clear the post-pandemic future will be different. What\u2019s happening during the crisis will have a lasting impact on society. Current signs of entrepreneurial initiative and goodwill give us some cause for optimism.<\/span><\/p>\n

        In the words of Stanford economist Paul Romer: \u201cA crisis is a terrible thing to waste<\/a>.\u201d<\/span><\/p>\n

         <\/p>\n","protected":false},"excerpt":{"rendered":"

        Guest Bloggers: Klaus Meyer Professor of International Business, Ivey Business School, Western University Carsten Lund Pedersen Assistant Professor, Marketing, Copenhagen Business School Thomas Ritter Professor, Copenhagen Business School \u00a0 Originally …<\/p>\n","protected":false},"author":5,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_eb_attr":"","_mi_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0},"categories":[22],"tags":[],"yoast_head":"\nThe coronavirus crisis: A catalyst for entrepreneurship | Gronen<\/title>\n<meta name=\"robots\" content=\"noindex, follow\" \/>\n<meta property=\"og:locale\" content=\"en_GB\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"The coronavirus crisis: A catalyst for entrepreneurship | Gronen\" \/>\n<meta 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