Notwithstanding the immediate setbacks inflicted by the pandemic, startups may enjoy far greater opportunities in the post-pandemic world, Saji Gopinath, CEO, Kerala Startup Mission (KSUM), has said.
Talking to The Hindu on Thursday, Mr. Gopinath said the fast-paced economic growth expected after the pandemic would demand quick solutions, which may benefit startups capable of adapting and fine tuning their products to the market demand.
“Already some of our startups have reinvented to cater to the booming demand for medical devices. The KSUM is conducting free webinars (seminars conducted over the Internet) on learning and development programmes led by top executives from tech giants such as Twitter for helping startups acquire the skill sets needed for that adaptability to manage their growth arch,” he said.
Rather than despairing, startups should utilise this lockdown for fine tuning their products so that they can reap the benefits of future opportunities. They should also make maximum use of quality mentors and support systems now readily available, besides taking advantage of previously expensive tools such as cutting edge communication facilities now available cheaply.
Mr. Gopinath, however, said that in the short term, startups would be hit like all other sectors, especially those in select sectors such as tourism and real estate.
A recent study conducted by the KSUM with a sample size of 580 startups found that 52% startups have been hit by major slowdown of which 14% have been closed down. Of the 86% startups still working, 44-45%, though, have not been seriously affected.
“Startups already into business are experiencing a major slowdown, while those in the product development stage have not been much affected as majority of them would have arranged the cash flow for the next 3-6 months. Though some hardware startups were initially hit by shortage of components from China, even that has been resolved now,” said Mr. Gopinath.
Larger startups have been more seriously hit primarily because of their higher fixed overheads unlike smaller startups. “In fact, bigger the startup more will be the recovery time, while smaller ones can recover and move up fast,” he said. Besides, smaller startups would also benefit from waiver of rent and loan repayment announced by the government.
