Navigate your way through uncertainty has been saved
Navigate your way through uncertainty
Impact of COVID-19 on growth enterprises
COVID-19 will change the way we conduct business. Growth enterprises might need to embed agile decision making into the culture and do away with the traditional silo-based mindsets. The need to constantly adapt and innovate to stay ahead of the curve is an imperative. This may entail identifying new markets and opportunities, focusing on ‘make in India’ and technology, forging alliances, making tough choices, and above all ensuring resilient leadership.
Recognised as the vibrant and dynamic segment of India, growth enterprises play an important role in driving growth and promoting equitable development. Accounting for more than 90 percent of the total enterprises across industries, the segment contributes ~30 percent to the national GDP and ~40 percent (US$ 147 bn) to the Indian exports. It gives employment to more than 20 percent (120 million) of the total Indian workforce.
After the COVID-19 outbreak, growth enterprise companies have been pushed against the wall. ICRA (formerly known as Investment Information and Credit Rating Agency), the International Monetary Fund (IMF), and other industry experts have pegged India’s GDP for the current year in the range of 1.2−2 percent with a marginal contribution from growth enterprise organisations.
As quoted by J. F. Kennedy, “when written in Chinese, the word crisis is composed of two characters. One represents danger and the other represents opportunity.” Even as growth enterprises cope with the rising stress to survive, this could be a defining moment for businesses to respond, recover, and thrive.
Using learnings from the SARS outbreak, the 2008 financial meltdown (that slowed down the global economy), and measures adopted by Chinese growth enterprises to survive through the COVID-19 crisis, we believe that the following practices and strategies for growth enterprise organisations will be relevant: