After COVID Struggles of a Startup in India
Going through the countless memes during COVID lockdown, I could safely say that I’ve witnessed at least one “Black Swan” event in my life. As the COVID19 pandemic slowly unfurled its wings plunging us into excruciating grief, we nonetheless found our genes through the Gig Workers who became not only our food delivery friends but also the crucial economy’s frontrunners!
However, It’s not hard to see the economic devastation suffered by small Indian businesses. The stores were closed, the lights turned off with apology signs hanging from the windows. Small take-out tables and restaurant windows allow only the quickest exchanges on the sidewalk. The proof was literally in front of us.
It was a little harder to see the economic damage to startups and the country: tech-focused young companies working primarily in software and life sciences. Their offices were above street level and inside anonymous office buildings. But, as a new report from Startup Genome makes clear, many startups are still struggling just as much as other small businesses.
The Ugliest Effect of COVID on Startups:
Not Only Businesses But,
Employees broke a disproportionate amount of the negative effect, just as they do in other types of small firms. Three-quarters of startups say they’ve already had to lay off full-time employees. At the moment, the cuts do not appear to be substantial. Half of the organizations that have laid off employees have laid off less than 20% of their workforce. That’s a lot less than I’ve seen in other statistics regarding small businesses in general.