This archive report was first published on 13 July 2020.
As the world grapples with the COVID-19 pandemic, the impact on economies and businesses is becoming increasingly apparent. According to the International Labor Organization (ILO), over 25 million jobs could be lost worldwide as a result of the pandemic.
Published on July 13, 2020, the ILO's assessment highlights the significant and long-lasting effects of the pandemic on entrepreneurship. The UN agency estimates that global working hours in the second quarter of 2020 will be 10.5 percent lower than their pre-crisis level in the last quarter of 2020, equivalent to 305 million jobs.
Micro and small businesses, with limited savings and access to financing, have been hit particularly hard. The World Economic Forum (WEF) reports that more than 70 percent of start-ups have had to terminate full-time employee contracts since the start of the pandemic.
However, many entrepreneurial businesses have pivoted to meet new needs for goods or services borne out of the crisis. Urgent attention and resources need to be channeled towards supporting young entrepreneurs to ensure they have the support they need to be resilient enough to manage the current crisis.
Here are five ways to support young entrepreneurs during this challenging time:
- For funders and investors, keeping cash flowing and agreeing realistic targets is crucial. Open discussion between funders and investors and (prospective) grantees and clients on the rapidly changing situation and required response will be critical.
- Policy makers should deliver targeted support that addresses specific needs of young entrepreneurs, including cash grants, loan schemes, tax payment extensions, and temporary unemployment measures.
- Enterprise support organisations should reassess needs and adapt their services, such as shifting services online or providing emergency cash credit facilities.
- Consumers can support small businesses by buying products and services directly from young entrepreneurs in their community.
- Young entrepreneurs should take stock of their situation and reach out for support, including peer networks and support organisations.
