How do entrepreneurs cope with the uncertainty brought on by Covid-19?

In early 2020 Covid-19 caused a worldwide pandemic. Governments all over the world started banning events like carnivals, fairs, and concerts that more than 1000 people can attend in an effort to curb the spread of the infection. As we have experienced, over the next few weeks, the regulations were widened so that national borders, then bars, shops, and other gathering places, as well as schools, were closed. This brought the whole world into a never seen situation. Never before was the economy in so many countries around the world put into hibernation in order to save lives, and to ease the pressure on hospitals.

The unforeseen consequences of efficiency

These unprecedented restrictions curb the spread of the disease is a considerable destabilizing factor to the global economy. As businesses all strove to optimize their cost structures, methods such as “just in time” production to reduce stock were implemented. Businesses also reduced the number of their suppliers. In short, stock, redundancy, and any kind of slack were removed for efficiency in the optimization process. These methods work well when every element in the economy functions smoothly, but it does not allow any kind of unforeseen incident, even less something like a pandemic on a global scale.

The Covid-19 restrictions have disrupted supply chains so that businesses now are dealing with lost revenue. At the same time, the globally rising demand for equipment to fight outbreaks such as masks, gloves, and ventilators increase the pressure on these supply chains. At the same time, the lockdown restrictions meant that air and ocean freight options were severely limited to move products. Panic buying put even more strain on the supply chains, as some individuals stocked up on groceries and household items in preparation for compliance with restrictions on movement, especially when they began to see shelves with low levels of stock. In the quest for efficiency, behavior like panic buying or black swan incidents with a very low chance of happening but with inestimable consequences was rationalized.

In the aftermath of the lockdown, it appears that the conventional way of doing business does not work anymore. Therefore, the organizers of the Digital-Shift.org forum are looking for entrepreneurs and business owners.

Call for entrepreneurs

In such challenging and uncertain times, how do entrepreneur lead their businesses? We are doing research for an upcoming Digital-Shift event about uncertainty and how to lead boldly on past this crisis.

We are looking for business owners and CEO for an interview. We are interested to know

  • How do you cope with uncertainty and unpredictability?
  • How do you make decisions in uncertain situations?
  • Do you have a framework to help amid widespread uncertainty and cutbacks? What kind?
  • What kind of strategy and tactics do you use to survive the current crisis?

Please contact us at june.vonbonin@visualcontext.net for more information. Feel free to share this call for entrepreneurs with your friends and colleagues.