On March 10, 2022, the entire business world woke up to this shocking news from the Federal Deposit Insurance Corporation (FDIC),
“Today, Silicon Valley Bank, located in Santa Clara, California, was shut down by the California Department of Financial Protection and Innovation. The Federal Deposit Insurance Corporation (FDIC) has been designated as the receiver in this case.”
This news sent shockwaves throughout the sector. This was the largest bank to have failed since the 2008 financial crisis & the second largest in the history of the US. This created huge chaos in the financial market because the shutdown of a bank as large as SVB would mean a very large situational crisis for businesses all over the world.
Nestled in the heart of innovation and techie dreams, Silicon Valley Bank stood as the financial bedrock of the world’s most dynamic and groundbreaking industries.
Since its inception in 1983, SVB has been one of the largest banks in the USA with more than $200 billion in assets. Silicon Valley Bank is a venture debt provider that specializes in funding tech startups all over the world.
As the financial pulse of the tech mecca, SVB had greatly adapted to the fast-paced rhythms of Silicon Valley.
This financial powerhouse had been more than a bank to the startups; it was a strategic partner, a mentor to startups, and a catalyst for entrepreneurial success.
With a client list like Tesla, Uber & LinkedIn, SVB had carved a niche as the go-to financial institution for the ever-evolving needs of the tech community. In 2022, Forbes named SVB among America’s best banks.
Largest Bank Failures in the United States, March 2023
Chronology of the Events Leading to the Downfall
Just like the many other important events of the past decade, this too had its genesis in the pandemic. Adding fire to the flame was the Ukraine-Russia war.
Let’s dig deeper into its roots.
The Pandemic
As the pandemic hit and the whole world came to a standstill inside the four walls, the software industry was one among the few others that remained largely unaffected.
This turned the attention of the venture capitalists towards this industry. This resulted in the tech startups raising a huge sum of money in 2021. These venture capital investments nearly doubled year-over-year to around $329 billion in 2021.
This further resulted in banks holding a lot of deposits including the SVB. According to data by Bloomberg, it was estimated that as of March 2021, SVB had jumped to $124 billion from $62 billion in the previous year.
On the other hand, due to the pandemic, the interest rates have gone too low. SVB wanted to make use of this situation & provided high-interest rates to the depositors at around 2.33% while other banks like Bank of America were giving an interest rate of 0.96%.
This also resulted in many big businesses depositing their money with SVB resulting in a huge influx of cash.
As a result, SVB invested heavy sums of money in long-term bonds for its Hold to Maturity (HTM) portfolio with 10 years of maturity.
Everything was smooth until the next major factor came in.
Ukraine-Russia War
The war led to an energy crisis all over the world leading to a high inflation rate. According to the Bureau of Labour Statistics, inflation in the US peaked at 9.1 % in 2022. So, as the usual financial procedure goes, the interest rates skyrocketed to 4.33%.
This led to the lowering of bond values affecting the values of bonds bought by SVB. Also due to high interest rates, businesses, instead of opting for loans for their financial needs, started withdrawing their deposits from the bank. This led to billions of dollars being withdrawn from the bank at the same time.
To address this liquidity crisis, SVB had to sell a $ 21 billion bond portfolio at a $1.8 billion loss.
As the news spread, this led to a situation of bank-run further creating a sense of fear in the whole business world and the stocks of SVB plunged by 60% in a single day. As a result, SVB couldn’t carry on further with its banking activities.
Eventually, the Federal Deposit Insurance Corporation (FDIC) took over and created a new bank called the National Bank of Santa Clara to continue the business activities further.
The Indian Government and the economists had assured that there wouldn’t be much of a contagion effect on the Indian market due to the collapse of SVB.
Sakshi Gupta, Deputy Vice President of HDFC Bank says, “The SVB collapse is unlikely to turn into a systemic risk. India’s banking system exposure to the SVB collapse is low and the health of the banking system remains sound….”
That said, we need to understand that some sectors including our tech-based startups and IT firms will be affected to some extent.
For example, among the startups, specifically those that were funded by the American incubator, YCombinator will have to face the consequences of the collapse. That’s because about 60% of the YCombinator’s startups in India have exposure to SVB.
Also, this collapse might slow down the funding that the whole startup ecosystem has been getting & result in an overall slowdown of the sector.
Another important factor to consider is the decline in overall confidence that the public has in the banking system resulting in a drop in deposits & other banking activities.
As far as SVB’s Indian clients are concerned, their priority should be to determine how exposed they are to the bank and take the necessary precautions to safeguard their assets and enterprises. This may include getting legal help, revisiting loan terms, and looking for other finance and investment options.
Current Status
Currently, Silicon Valley Bank is operating as a division of the First Citizen Bank
Conclusion
The downfall of a bank as big as SVB is a reminder of the significance of prudent risk management and investing methods, particularly in the financial industry. It also emphasizes the importance of policymakers carefully considering how their choices would affect the financial sector and the overall economy.
China has been one of the world’s leading economic powers for almost two millennia. Until the late 1700s, it accounted for approximately one-quarter of the global GDP (Gross Domestic Product). By the time the industrial revolution was beginning in Great Britain by 1820, China was accounting for approximately one-third of the global GDP. These numbers factually reflected that China’s GDP at the time was six times as large as that of Great Britain.
Under the leadership of Deng Xiaoping, the Chinese government began introducing economic reforms in the year 1978 which resulted in the country becoming the fastest-growing major economy in the world. China registered an average growth rate of 10% over the next 30 years. Its sustained growth rate could be attributable to its export relationships, its large-scale manufacturing sector, and the country’s low-wage workers.
As one of the largest economies in the world, the country was successful in avoiding the global economic downturn due to the Covid-19 pandemic. However, in the year 2022, it posted one of its worst economic performances in decades because of the pandemic.
As of the year 2020, the national debt of the People’s Republic of China stood at an approximate amount of USD 7 trillion. This amount was equivalent to around 45% of the country’s GDP. The off-balance sheet debt of Chinese local governments, as per the Standard & Poor’s Global rating, was amounting to approximately USD 5.8 trillion while the International Monetary Fund said that the debt owned by the state-owned industrial firms was another 74% of the total country’s GDP.
According to Forbes, at the last measure, China’s debt of all kinds – public and private and in all sectors of the economy – amounted to a staggering USD 51.9 trillion, which is almost three times the size of China’s economy. Since the time Beijing first began tracking such statistics, twenty-seven years ago, this amount is the highest level of debt recorded.
The Beijing-backed National Institution for Finance and Development has stated that local authorities are set to issue a new debt amount of approximately USD 570 billion for the next year. This precarious situation of China is further highlighted by its comparison of relative debt to the United States. By mid of the year 2022, China’s national debt was 40% higher than that of the US.
National debt refers to the outstanding financial obligation of a particular country and what the central government owes to its creditors. The amount of the national debt of a country represents the past annual budget deficits. It is incurred especially to maintain government services during a recession when tax revenues decrease and government expenditure increases. Government debt is also created to cover costs from major shocks like a war, a public health emergency, or even a severe economic downturn.
Reasons for China’s Increasing National Debt
In previous years, China had successfully managed to keep its national debt lower than the US. This was possible due to the policies that were introduced by the state. The national debt of China had usually been held by domestic institutional investors, in particular state-owned banks. The investment and lending practices of these banks supported government policies like issuing bonds for infrastructure investments and insurance companies.
However, in the last few years, the country has seen a consistently increasing national debt that has included government spending on development projects and slowing economic growth. The global financial crisis in the face of the covid-19 pandemic caused the state to inject more credit into government-owned enterprises. At the same time, Chinese authorities eased the way for companies to secure loans to restart the economy. This further increased the burden of debt on the country’s economy.
China’s Local Government Debt Crisis Explained
Impact of High National Debt on the Chinese Economy
China’s financial system is not entirely transparent. This is given rise to concerns about the amount of actual debt that is being held by local governments and state-owned enterprises. Other related concerns are also highlighted like the risks associated with high-level borrowing and the overall debt of the country. Having said that, China is hopeful of ambitious economic growth due to its heavy investment in infrastructure projects. The economy has also taken proactive steps towards a consumption-driven growth model, although, it is yet to yield results.
Despite the shadow that is cast on China due to its growing national debt, analysts remain optimistic about the country’s long-term prospects. They remain positive that although this will slow China’s ascent, it won’t derail the economy entirely.
Conclusion
The debt situation of China is set to grow further. There are two notable and significant issues impacting it. One is its demographic challenge with over 60% of the country’s population either retired or nearing retirement age. The second big concern is the country’s shortage of young workers which supports a growing aging population due to its decades-long one-child policy. This situation within the country is likely to continue for the foreseeable future and the country will rely heavily on debt to fulfill its social security pension obligations.
FAQs
What is the current debt of China?
As of the year 2020, the national debt of the People’s Republic of China stood at an approximate amount of USD 7 trillion.
What is National Debt?
National debt refers to the outstanding financial obligation of a particular country and what the central government owes to its creditors. The amount of the national debt of a country represents the past annual budget deficits.
You can hardly predict some cancers before it grabs the whole body to an extreme stage. Basically, hyperinflation is a wolf under the sheepskin. The news, the experts, the cunning industry, and even the government may hide the truth to protect the aftermath. Many companies employ a widespread technique to convince the consumers that costs are stable, even though you’re paying more for less weight with the same packaging. Hyperinflation is a negative catalyst that may act slowly but steadily to summate long-term accelerating inflation. So, we will go through 7 case studies of hyperinflation-affected countries of all stages (growth, maturity, and decline) in the economic graph.
Hyperinflation is a terrible stage of uncontrolled inflation with a sustainable panic of supply shortage despite paying more. A country has to face the problem when it has enormous national debt, declining foreign reserves, and long-term political uncertainty. In external events, such as war, and lack of global confidence in the economy, worldwide pandemics push the problem to a negative slope. A government will fund its reaction to the crisis by taking on debt, but it can’t afford services and releasing additional money in the market to make up the difference. Twitter co-founder Jack Dorsey’s tweet at the end of October 2021 fuelled the panic of hyperinflation across the US amid the tough time of the pandemic.
Global Inflation Rate from 2016 to 2021
Countries that Faced Hyperinflation
Hyperinflation is a dreadful state of condition for any country. The following are some prominent countries that faced hyperinflation and the reasons behind them:
Russia
The world’s second-largest arms and crude oil exporter, Russia is heading towards significant inflation, possibly a burst into hyperinflation. The economic data coming out during the Ukraine invasion is not very healthy. Apart from the war, the Kremlin is fighting with an internal three-point trap triangle of (hyper) inflation-pandemic sanctions. As per reports, the Russian regulatory bank called CBR raised the interest rate by 20% to save the ruble from the western red eye of sanctions. As a result, the ruble tanked at a record low of 25% this March.
Amid fear of losing oil and arms export hegemony, the country faces isolation from the West and the US. Investors are trying to get into a safe escape. Many billionaires shut down their business operations as a protest. The economy is being drained of cash. One month down the line of conflict, Moscow enrolled with 3.5 lakh Ukrainian refugee shelter houses, and inflation zoomed up 15.66% this March-end, expecting a 20% fear of inflation in this financial year as per a central bank survey. SWIFT system and payment card firms are ceasing operation in Russia, which is a significant setback for the country. The CBR is struggling to control capital outflow( movement of an asset out of a nation), escalated by the record-long shut down of the Moscow exchange.
Moscow’s financial advisors have shown public confidence to revive their internal banks with additional reformation. It will take some time to confirm the post-invasion period Russia copes with the odd or cross the red inflation line to join the hyperinflation club. Though, as per experts, it has intense symptoms of hyperinflation.
Russia’s Ukraine Invasion
Iran
In March 2022, the Statistical Centre of Iran (SCI) reported an annual inflation rate of 40.2%. The Islamic Republic owned 10 % of the world’s oil, 15-17% of its gas reserves, and 7% of its minerals. So then, why is Iran also sinking towards hyperinflation? Literally, Iran has everything for cooking except the cook!
Weak diplomacy also pushed EU and US sanctions on energy, tech, financial service, and foreign trade. Iran’s president asked its central bank to stop releasing data as it is higher than the SCI tally. Diplomatic gaps weaken the trade deficit.
The country is suffering from basic needs like water. Protesters rioted in Tehran’s streets, resulting in deaths and arrests. The country is accused of state-sponsored disinformation, a dangerous trend to hide the disease rather than treat it.
A silver lining of hope is raised after the US Congress gets its new president from the democratic party in January 2021. Iran is trying to get the Indian market oil with a rial-rupee deal. The US-Tehran has shown some positive signals of melting down relations with the nuclear deal ahead of the Russia-Ukraine war.
Turkey
Ankara crossed the 50% inflation red line and entered the hyperinflation zone with a 54% index as of March 2022. Despite president Recep Erdogan’s battle with the recession, the Turkish people have not achieved a new normal since 2018. His equation to fight inflation is lowering the interest rate. Unfortunately, his flawed policy slipped the currency lira to a loss in the last year. The uncontrolled depreciation of the lira has created a hugely detrimental impact on the economy. There has been a certain increase in the exports, but the following adverse consequences are more than the actual gain:
The significant drop in purchasing power is the result of devalued currency; the salary class people need to pay more lira for the same or less product. Therefore, the loss of purchasing power is a severe impediment to economic growth.
To minimize the inflation risk, Turkish banks have stopped encouraging lending to ensure less money in the market. It has no option when they are unable to raise interest. In the long run, it has an even worse effect on increasing the country’s brain drain. Foreign currency is taking a break, and investors are rushing out of the country. This leads to job or employment problems at worst.
The civil war inflicted on Lebanon’s lira is losing the battle and ending in triple-digit inflation of 215% in front of the US currency. It is enough to cripple the retail, health, transport, and fuel sector investment. With 78% poverty, the country is trying to get a good deal from the IMF. But the corruption grappled the country at such a deep level that its central bank had to face inquiry and slap from the lawsuit. The United Nations confirmed that the Ponzi scheme was a major red flag behind the economic meltdown. Beirut tried to reshape its economy with tourists to the Gulf help. But in 2011, the neighbouring Syria unrest put the country in financial collapse again. In the meantime, the Hezbollah-Iran tie miffed some major gulf countries.
The fall of money was fuelled by the central bank’s direct financing of the government’s public deficit during the civil war. As a result, money has entirely lost its essential rules and everything that made it a reliable store of value. The Govt, despite a defaulter of foreign debts trying to survive with the help of the World Bank and IMF. Another good news is, recently, the new Lebanese govt got a ‘positive outcome’ certificate from the Saudi kingdom. Hope it will improve their credit pipeline.
Sudan
After a military coup, riot, and political uncertainty, the East African nation is more chaotic; debt-trapped Sudan announced it would float its currency as economic conditions deteriorated. According to United Nations officials, Sudan’s food crisis is expected to drop due to the African country’s economic collapse, displacement, and ruined harvests. After the military took over the US, IMF and World Bank suspended their million-dollar aid and SDR (special drawing rights of IMF). Another setback is that the separate region of South Sudan holds 75-80% of oil production in the Upper Nile state.
Since 2016, the country has faced a lopsided economic downturn, covid and coup pushed it on the verge of catastrophe. With the shrinking GDP of 2020 by 3.6%, the country summed up the cycle and added a 359% inflation rate. World food program data warned that about 5.8 million people suffer food shortages and malnutrition. In the current scenario, the political paralysis of Sudan is a significant issue of hyperinflation and food shortage. Moreover, it blocked the foreign fund in the African nation.
Inflation among countries
Zimbabwe
Are you fed up with hearing about hyperinflation in different countries? Here is Zimbabwe for you with a ray of hope. The government had robust growth of 838% inflation in July 2020, and now, there is a significant drop at 50% in August 2021. During this challenging time of pandemics, war, and sanctions, it is not easy to revive the economy from hyperinflation in such a short period. Chronic symptoms of hyperinflation are coming out like lower growth, hunger, a debt-driven economy, low income, jobless youth, and collapsing health sector. It was not fun when the African bread bucket turned half of the population into a beggar.
It was a tough time for the drug-addicted, debt-ridden country when it was announced as having the highest inflation rate in 2019. With a fast depreciating currency and hyperinflation nearing 800%, most commoners watched their hard-earned money turned into a paper bunch. The country suffered 90% unemployment which coerced University graduates to sell vegetables in the market. The confused Reserve Bank of the country introduced a bond note with a 1:1 value against the dollar, but the market doubt was fainting its importance rapidly. In 2019, the Reserve Bank announced RTGS$ and banned foreign currency in domestic transactions.
Pandemic norms encourage digital payment worldwide, and it was reshaping the economy of Zimbabwe. It pushed the RTGS to POS transactions. EFT(Electronic Funds Transfer)and the Card payment system showed robust growth in 2021. Thus, it saves money printing the ‘need’ of a hyperinflationary economy. The rural part also enjoyed financial inclusion (finance access to the poor class), and the govt can track them with the tax system. The untapped section is directly under the payment system. Online transaction access to the internet among youth generates various business ideas worldwide. Bitcoin and crypto came to the discussion table of policymakers.
Venezuela Inflation Rate as Compared to Previous Year (by Statista)
The South American Country seems to be the king of the hyperinflation kingdom without any competitors nearby. In 2018, it reported 65,374.08% inflation, which means people need to carry money in a car dicky for daily retail shopping. A bunch of cash becomes useless in the economy. In the same year, 48k teachers left the country (remember, they are not sacked) to relocate to neighbour-based countries for livelihood.
There was a mass exodus in the middle of 2018. About 4 lakh people left the country, and it was not for armed conflict but terrible hyperinflation. Among the country’s top human resources, doctors, professors, and IT professionals were fleeing the country, leaving unfilled posts. The country faced mass blackouts, and people used candlelight or cell phones during an emergency. The country dried out of medical supplies and doctors; patients had to wait for half a year for an emergency operation.
Critics blame policies of socialism. Experts accused the country of suffering from printing money and a fiscal deficit. Once known as the giant supplier of crude oil, the comfort of the oil zone hit back Venezuela in 2014 after oil prices fell continuously. Since 2014 the country has shown a significant drop in GDP in negative growth.
There is a thin sign of revival in 2021; Venezuela reported a surge of the foreign reserve by $5.1 billion. The country’s central bank claimed to curb inflation by ‘only’ 686% for the same year, a great short-term relief.
Conclusion
Here we did not consider the crisis-hit Sri Lanka or war-torn Ukraine. Moreover, since August 2021, Afghanistan has been out of the internal statistical audit.
Therefore, there is a high possibility that the hyperinflation club will get new members. On the other hand, controlling hyperinflation is far more difficult due to the enormous political cost of the typical solutions. In reality, one reason that can turn inflation hyperinflationary is the populist administrations, which are being trapped in a situation where they cannot make practical efforts to reduce inflation.
It is better to control it in the inflation stage. So, the policymakers or government need to take some bold and reformative steps to prevent the money flow in the economy. It also needs diplomatic efforts, so that the countries can avoid printing $100 trillion notes like Zimbabwe.
FAQs
What is hyperinflation?
Hyperinflation is extremely high and rapidly increasing inflation. It is said to have occurred in an economy when the prices rise over 50% in one month due to economic disturbances and depression.
What causes hyperinflation?
The main causes of hyperinflation include:
High National Debt
Price control that leads to an increased shortage
Economic output decline
Lack of faith in government
Which countries are facing hyperinflation?
Venezuela
Sudan
Lebanon
Iran
Zimbabwe
What is a healthy inflation rate?
A healthy inflation rate is 2% which is considered good for economic growth as in this situation, people are more likely to make purchases in the present rather than wait when they expect prices to rise.
In India, the biotechnology sector is a fast growing industries. The companies underthesebiotech startups are known for providing better diagnosis, high-quality drugs, and making medicines and MedTec products available at a reasonable price. They aim at getting the best outcome for developing health awareness and upgrading diagnosis facilities for betterment. With the developing technologies, the health care sector is also increasing their quality with the help of these startups in India.
Amid the pandemic, one of the industries that made a huge growth has to be the biotech industry without a doubt. Apart from the prescribed medication, people were also flocking to get in touch with daily vitamins and other possible nutrients too. This has enabled the biotech industry in India and all over the world take off and flourish. So, let’s get to know what are these biotechnology startups in India in a little bit more detail.
Founded in 1978, Biocon is one of the top biotech startups in India. It started with a budget of INR 10,000 as a company that used to sell the enzyme papain. The focus of the company changed in the 1990s by the founder, Kiran Mazumdar-Shaw. To make a change, she decided to shift from selling enzymes to selling biopharmaceuticals. Gradually she got enlisted among the richest women in India.
The annual revenue of Biocon sums upto INR. 4,709 Crores in 2018. By 2020, they have also given access to more than 2.1 million patients through their biosimilars. As of now, their manufactured pharmaceutical ingredients are being sold in more than 120 countries throughout the world.
Sea6 Energy
Founded: 2010 Founder: Nelson Vadassery, Sowmya Balendiran, Sailaja Nori, and Shrikumar suryanarayan Headquarter: Bangalore
Sea6 Energy – Biotech Startups in India
This startup was launched as a way to come up with the solution to the problem of over-consumption of energy in India. Four IIT Madras graduates, Nelson Vadassery, Sailaja Nori, Sowmya Balendiran, and Sayash Kumar came forward with the help of their professor, Shrikumar Suryanarayan. Together, they founded the startup in 2010 and currently it is considered as a top biotech startup in India. The primary aim of the startup is to convert photosynthetic biomass, for instance, plants and algae to fuels – Something that will definitely come in handy in the near future!
It enables these elements to work into battling against the unending commercial use of energy. It is funded by the Department of Biotechnology and is incubated at the Centre for Cellular and Molecular Platforms (C-Camp). The startup incorporated a few patented techniques in order to facilitate the large-scale cultivation of selected sea plants. The Government of Karnataka has given to the company, the title of “Emerging Company of the Year” in the year 2012.
Founded: 2013 Founder: Sam Santhosh Headquarter: Bangalore
MedGenome – Biotech Startups in India
Sam Santosh founded the startup, MedGenome, in 2013. It works at providing personalised genetic tests and medicines. It has its working genres scattered for a range of ailments, such as cancer, neurological ailments and diabetes. The largest next-gen sequencing lab in entire southeast Asia, MedGenome has its headquarter located in the USA as well as in bangalore, India.
The startup crossed a funding of INR 192 crore in 2017. In the following year, 2018, it bagged the MedTech Breakthrough Award for Biomedical Research. It is leading globally in personalized medicine that provides unique genomic solutions. The areas of their conduct are mainly immuno-oncology, ophthalmology, diabetes, cardiology, and a few other rare diseases.
Bharat Biotech
Founded: 1996 Founder: Krishna Ella Headquarter: Hyderabad
Bharat Biotech – Top Biotech Startups in India
Bharat Biotech was founded in the year 1996. The Hyderabad based company was founded by an well known Indian scientist, Krishna Ella. In India, it is the very first pharmaceutical startup that has successfully developed a generic drug.
It has achieved a huge milestone globally as they developed and received the patent the vaccine Zikavac. This one has been formulated to fight the prevailing Zika virus. It has done indigenous work in developing the covid vaccine – Covaxin. The operating revenues of Bharat Biotech International Limited, generally range over INR 500 Crore.
GANIT Labs
Founded: 2010 Founder: Dr Vinay Panda and Dr Vijaya Chandru Headquarter: Bangalore
Ganit Labs – Top Biotech Startups in India
The Bangalore based startup, GANIT Labs, has been founded in the year 2010 by Dr Vinay Panda and Dr Vijaya Chandru. The abbreviation GANIT Labs stands for Genomics Application and Information Technology Labs. As per the latest report on Zoominfo, the company has reached $3.8 million by 2019.
The primary aims of the company are to study genomes that are related to oral cancer. It also helps in mapping their respective genes. This company has been involved in manufacturing analytical equipment that will effectively analyse and manage genome data on a large scale. It is mainly from the genome sequencing of disease tissues such as cancer.
Forus Health
Founded: 2010 Founder: K. Chandrasekhar Headquarter: Bangalore
Forus Health – Top Biotech Startups in India
K. Chandrasekhar, the founder of Forus health, created the startup in 2010. The basic mantras of the company are being claimed as ‘Innovate’, ‘Implement’ and ‘Impact’. The company works to eliminate preventable blindness through an Ophthalmology device, which includes an intelligent pre-screening technique.
At present, the company operates in 14 other countries other than India. As of the financial year ending on 31 March 2019, operating revenues of Forus Health Private Limited has been displayed between INR 1 Crore – 100 Crore. However, as per the recent information given out by Zoominfo, the revenue has reached $5.7 million by 2020.
So with the growth of these biotechnology startups in India, the economy has also gotten a boost. As many of the above companies are actively participating in international transaction, the revenue can also possibly get a favourable development over the year. According to the reports, Indian BioEconomy is dwelling at around $33.6 billion. It has been predicted to grow in size upto $100 billion by 2025. With over 2,600 emerging biotech startups in India, our country has also included 50 BIRAC-supported incubators as well.
FAQs
Which is the biggest biotechnology company in India?
Biocon Limited is the largest Biotechnology Company in India.
What is the best biotech company in India?
Some of the best biotechnology companies in India are:
Biocon
Sea6 Energy
MedGenome
Bharat Biotech
GANIT Labs
Forus Health
Who is owner of Bharat Biotech?
Dr. Krishna Ella is the Chairman & Managing Director of Bharat Biotech International Limited.
What is happening in Ukraine is heartbreaking and makes us realise how fragile our system and everything is. How easily we can be deprived of our daily routines and how we must be prepared for this from the start. Many people have lost their homes, their belongings, and their jobs.
The conditions are horrifying in Ukraine. Losing everything is scary. One must be fully prepared from the beginning if one wants to be safe during tough times, especially when it comes to jobs. These recent events have opened our eyes and made us realise the importance of recession and war-proof jobs.
During difficult times such as wars, epidemics, depressions, and so on, recession-proof jobs are ones that are largely unaffected even if all other industries are shutting down or losing employees. With the recent pandemic strike and now the happenings in Ukraine, people are shifting their interests towards these types of jobs, which provide a guarantee of employment and support no matter what.
This article will define recession, its causes, and provide examples of jobs that are both recessions- and war-proof.
Simply put, a recession is a period of time when the total global economy experiences a decline. During these times, people lose their jobs, companies go out of business, and there is an overall rise in unemployment. A recession lasts for several months till the situation gets better. The average citizen suffers the most from the recession, as a result of unemployment, rising prices, and a lack of support from higher authorities.
What causes a Recession?
There are many causes of a recession like deflation or loss of customers’ confidence in a company, but the major cause is economic shock, which can be due to natural disasters, terrorist attacks, pandemics, or wars. We have just faced a recession due to COVID-19 and now due to the Ukraine-Russia situation. Due to these types of events, a recession can happen and thousands of people can lose their livelihoods, that is why there is always a high demand for recession-proof jobs and businesses.
Following are some examples of recession-proof jobs and businesses:
1. Food and Beverages
Food Business
One thing that is vital for humans is food. If there are no food industries making food and beverages, then a humane society can not function. That is why even when there is a pandemic and everything in the world is shut down, the food industries are still booming and all the employees are there working. Food for eating and beverages for drinking is not something that can be marketed as unnecessary and put aside during tough times as everyone needs it to be alive.
2. Services in the Medical Field
Healthcare Services
People get sick and different diseases require medical attention, thus there will always be a demand for healthcare services. Survival in these difficult times will be impossible if medical assistance is unavailable.
Even during a recession, healthcare services will not be interrupted. People require medical attention the greatest during a recession. As a result, the medical business will never diminish. Doctors, nurses, and chemists are all in high demand during such times.
3. Renovation and Repair Industry
Repair Services
The renovation industry is always needed, no matter what the situation is. Because some things can only be fixed or installed by professionals. For example, if your phone breaks and needs to be repaired right away, it is an emergency that must be handled properly and fast, especially in times of war or epidemic. A mobile phone repair service is the only option.
Repairing electricity, installing a security system, and upgrading your home for increased safety or to accommodate weather changes all necessitate knowledge and abilities. And after a war, reconstruction of everything that was destroyed due to the war is required. That is why, in difficult circumstances, the renovation and repair industry is critical.
4. Cleaning Services
It’s critical to have the finest health possible through difficult times so that you can confront anything that comes your way. And keeping yourself and your environment clean is the best way to stay fit and healthy.
We, as humans, live in a world where personal hygiene is extremely important, which is why cleaning businesses will never fail or go out of business since people will always buy it. Cleaning materials are a necessity, not a luxury.
5. Baby Products
Baby Products
Parents cannot make compromises or sacrifices when it comes to their children. That is why, even in the face of adversity such as war or a pandemic, the need for infant products will never dwindle.
Parents cannot experiment with the items they use on their newborns since they require the highest care and delicate products. If they do, it may result in significant health concerns. As a result, baby products such as diapers, baby food, and baby soaps will always be sold and purchased by the general population.
6. Child Care
As previously said, parents cannot make concessions when it comes to their children’s health and well-being. As a result, healthcare for children and those who work with them will always have a career because it is one of the needs in difficult times. Children, who are the most vulnerable, require the most medical attention during a recession, like wars, etc. As a result, child care is extremely important and will continue to exist.
7. Consumer Goods
Even in times of war or pandemic, people require basic necessities such as sanitary napkins, toothpaste, laundry detergent, and a variety of other items to be healthy. Whatever happens, these things will continue to be sold, and the people who work in these businesses will continue to have livelihoods.
8. Services for Death and Funerals
During COVID-19, there was a surge in demand for funeral services. The funeral sector is the one that blooms the most during any recession, especially during wars and pandemics. Funeral homes are what people resort to when they have to say goodbye to their loved ones because no one can avoid death, and many individuals lose their lives during these difficult moments.
9. Senior Care Takers
Elderly Caretakers
Tough times like a pandemic or a war can be extremely dangerous for the elderly. And during these times the demands for senior caretakers such as nurses, cooks, cleaners, and other support staff get really high. That’s why it can be a great opportunity for people looking for a job that can pay even during a recession.
10. Hospice Workers
The majority of people die in difficult circumstances. Unfortunately, this is the case, but specialists must be available to care for those who are nearing the end of their life. Hospice workers are professionals who care for people who are nearing the end of their lives, which might be due to a terminal illness or old age.
Whatever the situation, people still need to be educated. Two of the most powerful instruments for overcoming the financial crisis are education and knowledge. Humans, as individuals and as a civilization, must learn in order to survive and contribute to the growth of their community. As a result, teachers and educators in all areas are valued highly and are unlikely to lose their jobs during a recession.
12. Public Transport Workers
Public transport is the best way to save money, especially during times of recession. Thus, public transport workers will always have a job and they will be even higher in demand. Even if the economy goes down, the professionals like bus drivers, train drivers, train conductors, and many more, will have their jobs.
13. Body Shops & Auto Mechanics
Even though there will be fewer personal automobiles and vehicles on the road, they will need to be repaired. What if you have to travel urgently, perhaps during a war or pandemic? The cars must be in good working order. That is why the auto mechanic position will not be eliminated.
14. Pharmaceutical Technicians and Pharmacists
Medicines are needed by all age groups. No matter what’s going on in the world, that is why individuals related to the pharmaceuticals field will never lose their job as their job is vital and plays an important role in a recession.
15. Law Enforcement
Law Enforcement
There will always be a need for police officers, detectives, federal agents, and other law enforcement officers because no one can take their place. Particularly during a recession, those with specialised skills in these sectors will be in high demand as the crime rate might increase.
16. Workers in the Correctional System
People working in prisons, parole boards, and other offices won’t be losing their jobs either, as their services are important too. Even in a recession, letting the prisoners out will only increase the problems.
17. Public Utility Workers
During a recession, staying connected to your loved ones and the outer world is the only thing that can reduce stress. As seen during the COVID-19 pandemic, one way to keep calm was to stay connected to your loved ones through the internet, phone calls, texting, etc. Different sources of entertainment are also important to keep your mind busy and distracted for a while. And these services are possible because of the individuals working in these fields. That’s why these jobs are never going anywhere.
18. Judiciary Workers
Courts will operate no matter what and the people employed there, like judges, lawyers, clerks, sheriffs, etc. all have their jobs intact and won’t lose their job. Even though some courts were closed for a while due to COVID-19, that was to control the contagious disease. Despite that, courts are always operating.
19. Firefighters
FireFighters
Accidents like fires will happen, and they cannot be predicted. So, in order to control that and save lives, a profession like a firefighter and all jobs related to this field will continue to exist even in a severe recession.
20. Insurance Professionals
Insurance Brokers
Health insurance is crucial to most people, and they will keep it even in a recession, so there will always be a need for insurance brokers and professionals in this industry. Not only is there health insurance, but there is also automobile insurance, which is required to legally keep your car on the road.
Actuaries help businesses cut extra expenses and keep the business running during a financial crisis. Individuals in this field will have their jobs as their services will be needed most by both private and government companies.
22. Social Workers
Social Workers
Social workers will be needed most during a recession as more and more people will be looking for support. Many people lose their homes and their livelihoods during a recession, which is why social workers and their services are needed.
23. Mental Health Experts
Mental Health Expert
During a recession, the normal population gets affected the most. That can lead to some serious mental stress that can cause problems, which is why mental health experts are needed during these times. Substance abuse also spikes due to these conditions, so the demand for experts in these areas can get high.
24. Divorce Attorneys, Mediators, & Arbitrators
Financial difficulties and stress can cause couples to split up and compel them to make difficult decisions. According to studies, the stress induced by a recession causes a high rate of divorce and separation among young couples. As a result, there will be a demand for divorce attorneys, mediators, and arbitrators to complete all of this work.
25. IT Workers
Even during a recession, there will always be a demand for IT workers because the entire world has become digitised and technology is now the driving force behind it. To keep the websites, applications, and other things working, all of the technicians, programmers, and developers will be needed.
26. Bankruptcy Attorneys & Staff
Attorney
During a recession, there is a high rate of bankruptcy. Financial crises are unavoidable. As a result, employees in this profession will not lose their jobs, as there will be a high demand for their services due to the high rate of bankruptcy filings.
Conclusion
Wartime situations demonstrate the need of being prepared and have a plan in case things go wrong. Having a job in a war-proof business can provide financial security and perhaps save your life and that of your family. As a result of recent events, more people are looking for recession-proof jobs, which can aid them during a downturn.
FAQs
What industries do best in a recession?
Grocery stores, Funeral services, Educators, Healthcare, Insurance, and Attorneys are some of the industries that do not get hit by the recession.
What are the top recession-proof jobs?
Attorneys, Child Care, Elderly care, Law enforcement, Firefighters, and Educators are some of the top recession-proof jobs.
What investments are recession-proof?
Gold, Bonds, and Cash are some of the top recession-proof jobs.
The debt of the United States is the national debt that is controlled and acquired by the federal government of the U.S. to the Treasury security holders. According to the report by March 2021, the United States debt crossed over $28 trillion. This came to be so high that this was more than the economic production of the US calculated annually.
With the history of so many years, US debt has been increased by the slump that lowered the tax revenue. However, the Congress government has spent a lot more than this to facilitate the economy over time.
Besides, other services such as the Military have proven to be one of the biggest contributors who have been used for the benefits of medical care and others. And with the world pandemic in 2020-21, the spendings on the counterbalance of the situation has added more to the debt. But the good thing is, all this will be resolved once the pandemic ends.
Till then, other methods such as increasing taxes and a tight budget could help in reducing the debt. And this wide combination of budget growth, tax cutoff and recessions have brought the national debt-to-GDP ratio to a record level. But when there is a problem, to solve it, we have to face some consequences. And so the United States government would have to face the economic consequences.
In this article, we will discuss a case study on the U.S. debt and its GDP. Let’s get started.
The relation of the gross domestic production (GDP) with the national debt of the US has been rising since 2016. And the estimated data shows this would continue till 2026. The graph from 2016 to 2019 has been pretty high in the projection. By the record of 2019, the United States national debt was estimated to be around 108.19% of the GDP.
Total Public Debt as Percent of GDP
United States Finances
The national debt of the United States has had several ups and downs but since the 90s the graph has kept rising. And so as the public debt, which is known as the total money borrowed by the nation to facilitate and cover up the budget deficits. However, the monthly records of debt have been quite stable.
Even after the recession of 2008, the national debt of the United States has proven to be pretty steady and progressive. And the estimations have shown, it will keep rising in the upcoming years. Although the budget cuts and the lower employment opportunities have hurt the American economy, which is still recovering from such a crisis. Therefore, the national debt of the US, as well as the national debt of US per capita, has quadrupled since the last 1990s.
Besides the excessive progress, the national debt of the United States is still not counted among the top 10 highest national debt countries with relation to its GDP. However, countries such as Italy, Japan and Greece have far more figures than the US.
The ratio of debt to GDP
The Debt-to-GDP ratio of a country is calculated as the ratio between the country’s national debt and its Gross Domestic Production (GDP). This ratio measures the country’s currency and is calculated every year. When the Debt-to-GDP ratio comes low that shows that the country is sufficient enough for producing and selling different goods and services and it does not require any further debt for this purpose.
Moreover, many other factors such as wars, interest rates and recessions also affect the debt acquiring and borrowing rates and its choice to incur more debt. However, the countries with the high Debt-to-GDP ratio face different crisis and its recovery takes time. The Debt-to-GDP ratio impacts the country’s economic situation.
Soon after the revolutionary war of 1790, the united state government initiated its footsteps towards the debt. And after the 1790s, the debt has acted as the major help in times of war or economic recession for the U.S. government over centuries.
However in the period of deflation which is known for decreasing the debt size. But, actually, the real worth of debt is enhanced during this period. In the deflationary period, the money value is heightened while the access to loads of money becomes tougher.
According to the record of 2020, estimated by three Congressional Budget Office, the public debt was equal to 98.2% of the GDP. Later, it reached up to 99.4% and 105%. This was the peak of the debt-to-GDP percentage since 1946. In the 1970s, the debt faced several periods, and it stood stable.
But, from the beginning of the 1980s, the debt rose drastically. This was seen till the early 1990s, When the U.S. was under the presidency of Reagan and Bush. However, the ratio came down to 30.9% in 2001. But under the presidency of George W. Bush, it rose again.
Later, the U.S. faced several financial crisis and suffered the Great Depression period as well. This brought a major uprise in the debt percentage and during the presidency of Obama, the debt rose to 75.9% of GDP in 2008 and then, in his second term in 2016, it raised 73.3%.
America’s debt vs GDP
When a country’s debt is estimated it comes incredibly high. And in a country such as America, the value is quite large. However when the national debt is compared with the annual GDP, then only the financial deficits of a country could be measured.
The American debt went stable till 2007, but a drastic change was seen during the global financial crisis period. During this time in 2012, the debt rose to 95% of the GDP. After this, the debt kept on rising. And, during the pandemic of 2020 and 2022, the GDP percentage crossed over 100%.
The United States has faced such an economic situation before also in the 1970s. And, now with the debt of over $27 trillion which includes some mandatory spendings such as health care which requires around $2.7 trillion. The total revenue’s 50% comes from the income taxes of an individual.
The pandemic has made things more delicate and tough and until it is completely over, the economic crisis will continue along with the rising debt-to-GDP ratio. Well, in this article, we briefly discussed the American debt and its cooperation with the GDP.
FAQ
What is the current debt of United States?
The current U.S. debt is $23.3 trillions as of 2020.
Which country has no debt?
Brunei is one of the countries with the lowest debt. It has a debt to GDP ratio of 2.46 percent among a population of 439,000 people.
How much is the world in debt 2020?
The global debt total is at all-time high of $281 trillion by the end of 2020.
Workplace safety has been and continues to be a hot topic of conversation this year. Certainly, there are some extra measures which are appropriate in light of the new threat of Covid-19. However, workplace safety is never something to be overlooked or ignored because it’s important to provide it for all employees.
In this article, we provide some answers for companies wondering how they can improve workplace safety sufficiently when reopening their doors to employees, customers, or both.
Let’s address the priority threat concerning health and safety at present: Covid-19. The CDC has released guidance including a centralized page for business owners and managers to review. There’s also an OSHA PDF file here that includes specific suggestions from the CDC to assist business owners about how to keep staff safe from Covid-19. It is not a change in the safety regulations, but instead an instructive guide which is well worth reading cover-to-cover.
The risk of Covid-19 is from exposure to SARS-CoV-2. This comes from touching infected surfaces or breathing in infected droplets in the air.
Covid19 safety protocols
Safety Suggestions
The way to stay safer from Covid-19 largely depends on the type of work being conducted, where it’s being delivered, and whom the employees will come into contact with. By examining these factors, lead managers can determine what appropriate measures should be taken.
Office Workers
Office workers, for the most part, are mostly concerned with each other. However, they do go back to their homes which may be shared with others who in turn meet a different set of people for their work too. Add in regular shopping and other necessary trips outside, and the risk can exponentially grow. Therefore, just being in an office doesn’t automatically keep employees safe.
For many companies, the best advice is to have employees work remotely from home and provide technology services necessary to facilitate this. For instance, companies may choose to pay for an upgrade to an employee’s internet connection to improve their ability to participate in video conferences rather than leaving the employee with this new financial burden.
By reducing the number of employees coming into the office, the risk of exposure is reduced dramatically. It also avoids the potential for an infection to spread quickly across the office. Keeping at least six feet away from other employees is a good idea. It may be necessary to spread desks out to avoid closer contact. When this isn’t possible, wearing a face mask is advisable when social distancing isn’t consistently possible. Also, include hand sanitizers and regularly wipe all surfaces down with disinfectant.
Warehouse Employees
Warehouse employees are more likely to come into contact with both employees and outside visitors making either deliveries or collections. These kinds of people come into contact with numerous others every workday and offer a higher potential of being infected with Covid-19. Therefore, it’s necessary for any staff working at the warehouse to wear a face mask to avoid the risk of infection.
Even when the only people present in the warehouse are employees of the company, wearing a face mask is probably advisable to minimize risk factors.
Restaurant Staff
In the hospitality industry, the staff comes into contact with many different customers every day. This makes it particularly challenging to avoid potential infections.
Plexiglass or other see-through protective screens can separate diners from one another, and from the serving staff too. The place where the final bill is paid should have a protective separator between the staff and the customer. Also, separators between the serving area or open kitchen and customers must be erected to prevent the transference of infected droplets in the air.
When restaurants are required to close to diners but may offer a takeout service, then this must be provided using appropriate safety protocol to keep staff safe from Covid. Face masks, hand sanitizers, and wiping surfaces down is necessary too.
Employees can receive temperature monitoring checks upon arriving at the office, warehouse, retail store, or another workplace. Staff performing the testing should always be wearing personal protective equipment to ensure they’re not put at additional risk carrying out this necessary task.
Testing using a mobile hand-held device to digitally check for elevated temperatures is a first phase to protect against people who may have an infection but do not yet have other obvious or visible symptoms.
Quarantining staff when they show signs of possible infection is necessary. The company must then arrange to cover their position in their absence which is likely to be at least 14 days.
Safety Meeting With Staf
Many employees will be dismayed by the ongoing situation with Covid-19. They have also received a confusing array of conflicting information in the media over the months that this has unfolded.
It is therefore especially useful to conduct a safety meeting with staff – either virtually or in-person – to establish the risk and the processes set in place to protect them against it. For staff who have previously attended such a meeting, then this will provide some quick reminders. Doing so still has value because it’s easy to know the safety protocols, become accustomed to them, and then get relaxed about them without meaning to.
Re-opening After a Closure
In a situation where the business was temporarily closed or the premises (office, warehouse, restaurant, store, etc.) shuttered due to Covid-19, there are steps to follow before reopening.
Certainly, to get back up and running, follow the guidance provided by the government on how businesses should proceed. There is a Federal Small Business support option, but assistance is apparently slower to materialize than hoped by many looking for it.
Regardless of what may have been heard, the CDC is a highly knowledgeable agency with a long history of dealing with infectious diseases. Their advice should be followed and can be trusted.
Create a Covid- 19 Response Plan
Every business needs to create its own Covid-19 response plan. This is a plan that staff must follow when someone is believed to be infected or is exhibiting symptoms like a high temperature.
The plan must be available throughout the premises and digitally available too. Furthermore, staff must be provided this information and given time to familiarize themselves with it. Not knowing is simply not good enough. Every employee has a duty of care to other staff members and customers, just as much as the company does to them.
For staff who still work at the business premises rather than virtually, they are still responsible for the other aspects of health and safety. Just because there’s a greater degree of focus and caution surrounding the current virus, people must still stay safe in other respects too.
Conclusion
Therefore, a reminder about basic safety measures such as not running on the premises, cleaning up any spills immediately, not putting tripping hazards on the floor, and other measures remain important to avoid accidents. Hospitals have enough to manage currently – they don’t need unnecessary injuries to handle too.
Improving the workplace and the measures taken to do so has taken a different turn in 2021. Certainly, a range of new steps is necessary to ensure the health and safety of employees (and customers alike). These include temperature checks, social distancing, face masks, hand sanitizers, and others measures. However, general safety at the workplace should not be ignored. That still matters for employees who are on-site and cannot work from home.
The world is currently facing the largest health crisis since the Spanish Flu epidemic of 1918 and unfortunately, there seems to be no clear end in sight. Countless lives have been disrupted and businesses are likewise suffering as a direct result. While even some of the largest companies have already declared bankruptcy, we need to remember that every cloud has a silver lining. In this case, this lining involves the growing presence of online businesses as a direct result of current circumstances. What are some of the reasons why the virtual community is expected to benefit from the current COVID-19 outbreak and how can traditional enterprises learn to adapt?
Doing Away with “Business as Usual”
Of course, it only stands to reason that specific online industries will fare better than others. Some notable categories include:
Social media platforms
Massive online retailers including Amazon and eBay
The mobile application development sector
The main takeaway point here is that these industries have already developed a strong foothold within the digital community. Furthermore, websites related to gaming and entertainment should perform exceedingly well as countless individuals require distractions from the current social situation.
We are also seeing a new swathe of small start-up businesses come into the equation, and for good reason. It makes little sense to take a venture into the physical business community when we take into account the rather uncertain future that it is now facing. Starting an online business requires comparatively less capital, nearly any product can be marketed and it is now possible to reach a global audience. As an increasing number of consumers turn to the digital community to purchase everyday goods and services, it stands to reason that online businesses will continue to perform well.
However, what do the trends above signify for average businesses which still rely heavily upon traditional sales and marketing techniques? If anything, they clearly signal that new approaches need to be adopted sooner as opposed to later. The good news is that many businesses can easily create a digital footprint within the online community thanks to the presence of user-friendly e-commerce solutions.
Furthermore, this online presence can be used to address their loyal customers and to keep them up to date during times of hardship such as these. An effective marketing strategy may even be able to create a new client base. These clients can then be tapped into once restrictive measures begin to ease in the future (and they inevitably will).
The bottom line is that the majority of businesses around the world are facing tough times. However, it is always important to remember that the online community is able to offer a wealth of opportunities for those who are keen to leverage the associated resources. This is why it will indeed be interesting to see how the entire business landscape continues to evolve during the coming weeks and months.
There is never a perfect timing for starting a business, sometimes, there are but it only stops you from taking the risk. Organizations like General Motors, IBM, and Disney were all founded right before the Great Depression. Facebook, Twitter, and many others also made it through the economic crisis.
Whether anyone starts a company before, during, or after a recession or global pandemic does not necessarily mean one is going to be more successful in the long term. If anything, global crises are what highlight the next pile of problems the world needs to solve to move forward which gives rise to hundreds and thousands of new companies, new markets, and new opportunities.
As we are currently in this global crisis, there are multiple interesting opportunities for entrepreneurs.
Why is pandemic the perfect time to start any business
Employees of the Organizations enjoy the work without long commutes. Without as much of social life, without many of the work that used to keep us busy, some people have potentially more time than they’ve ever had to invest in getting an idea off the ground.
Here are some reasons why it is the perfect time to start a business.
Business built in the current situation will only be stronger in the future
Nobody has any idea how long this recession will last. However, if one creates a company that is valuable to people in an environment that is full of declining demand and rising unemployment, the idea of the business is only going to be stronger and flourish when the economy starts to improve.
Starting a business means entrepreneurs will be even more frugal with expenses, hiring, and whatever they need to get the company started.
A lot of talented and skilled people are looking for employment
It’s not just small businesses that are adversely affected by the pandemic. Even the multinational companies and most heavily funded startups are firing people right now.
Currently, the market is full of talented individuals looking for their next opportunity. As more companies move to remote workforces, this will unfold more opportunities for the right workers to find the right companies. This is a great time to find a co-founder and other teammates and build a category-defined company.
Businesses that start and solve problems in a crisis tend to grow faster
Generally, new consumer startups tend to be at the forefront of where the world is going with a digital focus, heavy content education and differentiation, and convenience, demand and supply focus for their customers. It’s no surprise that many of these businesses are suited for the current environment.
But what about companies that aren’t so lucky to be benefiting from these changes? Rule number one of entrepreneurship, when things go wrong, you don’t just give up. There is no option of quitting. There’s no perfect time to start a business. What matters is how motivated you are to begin.
Some amazing tips to run and flourish the businesses during the pandemic
Quick to respond
The entrepreneurs should be quick to respond in these times than in normal situations. There are many challenges and problems faced by the businesses and consumer as well. The team should be very flexible, responsive, and understanding about the additional challenges the pandemic adds to what are generally already extremely stressful events for the customers.
Consider the Benefits of working from home
Encourage the team and explain the perks of working from home. The privacy of employees is intact and undisturbed. Also, encourage everyone to enjoy the benefits, maybe work on the balcony for a little, go for a walk during day time, work flexible hours where possible.
Increase communication
Having a remote team during the pandemic, the communication and coordination among the employees have reduced. To increase communication amongst the team, rather than weekly check-ins and teleconference staff meetings, subordinates can check in with each other in some way daily.
A short text, an email, a phone call, whatever it takes and works best. With this, employees can be there for each other as needed, and address needs as they arise, relieving both team member and team stresses.
Always hope for the best and work for it accordingly
Business owners or entrepreneurs need to be the one who comforts and be a leader to give great hope. They must have a steady hand to keep things intact. People tend to allow crisis and hysteria to outpace the business.
The most important thing for new leaders is clear-headedness and accuracy of the emergency. Oftentimes, the cure can be worse than the disease, and CEOs have a responsibility to manage the psyche of people around them and work to gain confidence.
Ask yourself these questions if you want to start a business now:
Have I identified a new need that customers have as a result of the current crisis?
Can I serve this need in a way that is substantially better than the current alternatives?
Am I qualified to solve this customer problem?
If I don’t have the experience, can I hire others or find a co-founder to help me?
Do I have the level of funding that is needed for my business to be profitable?
Pandemic Affected Businesses
How can you launch a pandemic-era business
Build a wide network and understand what they are looking for.
Be a big relationship person, spend at least five hours per week talking to different people in the same domain of the business maintaining relationships.
One of the things you want to know, as an entrepreneur, is what investors want to see to feel confident investing in the company. Is it about how much revenue you produce? Is it the growth rate of your customers? Different investors look for different things, so it’s important to understand and plan what exactly is needed.
Have a long-term plan and strategy to make it through
Deals are still getting signed, but investors want to see that you have a very clear plan for navigating the current environment. Investors want to know:
How do you plan on executing the business during a pandemic?
Why would someone buy your product/services and who is the buyer?
When do you plan to start generating revenue?
What key metrics are to be measured, and are those strong indicators of business development?
The Bottom Line
Investors are looking for options as to where to put their capital. The stock market is on fire and the interest rates are so low that investing in bonds and things like that won’t yield a high return. So this is the right time to investing in deals and make the right deals for the businesses.
The COVID-19 pandemic has paved way for a global meltdown. Lockdowns and other measures implemented across the globe have helped in damage control and recovery from coronavirus to some extent, but the side-effects are here to stay. Manufacturing, retailing, and logistics sectors have taken a severe hit. This pandemic has effected damage on supply chains across countries and therefore, the distribution of products and services. The world is going towards a global recession phase. Companies working in the manufacturing sector are being compelled to change their working stack in order to see through this challenging time, one where the very existence of organizations is at stake. Consequently, 3D printing has taken the centrestage and is quickly becoming the baseline tech in manufacturing. This post covers the rise of 3D printing technology during the COVID-19 pandemic.
Reasons behind the use of 3D printing technology
1) 3D printing technology helps in producing parts and pieces whenever and wherever they are required. This technology doesn’t rely on very expensive moulds for production. It directly helps businesses in the sense that transport costs are cut down since 3D printing allows production of elements within one’s own premise.
2) If any problem occurs from suppliers’ side, one can produce the same parts without losing their properties through 3D printing. It indirectly helps businesses to use the wide range of materials they have at hand.
3) Having a 3D printer in your company can quickly help build products in situations the final product depends on a single missing part. This way, last minute dependencies are taken care of through 3D printing.
Italy uses oxygen respiratory valves prepared through the 3D printing technology. An Italian engineering firm, Isinnova, decided to mass-produce the valves using 3D printing. This was taken into consideration when Italian hospitals ran out of the respiratory valves needed to connect COVID-19 patients to ventilator machines. After examining the valve and creating a prototype, the company collaborated with a local manufacturing firm to create 100 valves in 24 hours which were then directly supplied to the hospitals.
2) Respirators
Isinnova has also contributed through the development of highly potential airway pressure masks. The functionality of this mask is that it can be used for sub-intensive care of patients suffering from COVID-19.
3) Quarantine Booths
In China, 3D printing is a widely used technique employed for all types of works. During the COVID-19 pandemic, Winsun, a 3D printing company based in China, used its resources to 3D print 15 quarantine rooms for Xianning Central Hospital. The rooms were made up of crushed and ground solid urban construction waste.
4) Ventilators
Ventilators are no less than godsend at the time of the COVID-19 pandemic. The University of Minnesota and Protolabs, a provider of 3D printing services, have collaborated for the noble cause of developing the key parts of a low-cost ventilator. Similarly, Formlabs has successfully printed a ventilator splitter which allows a single ventilator to support multiple patients.
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