COVID-19 has rapidly changed how businesses around the world operate, even putting a halt to some operations altogether. At Upaya, we’re proud to work with a community of innovative, tenacious entrepreneurs who are responding and adapting to the COVID-19 crisis in inspiring ways.
A virtual workshop with our 2020 Accelerator Cohort in April, 2020
Since the start of the crisis, we hosted a few virtual peer learning sessions with our entrepreneurs to create a platform for them to share experiences and build community support during these tough times. We strongly believe that the greatest support system for a social entrepreneur is among their peers who are on a similar journey. It has been energizing to see them actively engage during these sessions, sharing their experiences, exchanging ideas, listening to the input from more seasoned entrepreneurs, and seeking ways to support or work with one another.
More than anything, these interactions among our entrepreneurs helped to reinforce that entrepreneurs across India are in this fight together to support their communities and sustain their businesses through the current challenges. For some, it has also provided the encouragement to take action to address pressing needs. From these sessions, we’ve highlighted some insights on how our entrepreneurs have responded and adapted to COVID-19.
For the community
Fundraising to provide cash support / basic essentials / relief work
This crisis has been the most difficult on those in extreme poverty, and all our partner and cohort companies work with this segment of the population across India. Some of them started fundraising efforts to directly support their jobholders with cash support or food and basic essentials. One entrepreneur has even set up a ‘account’ with the local grocery store for migrant workers.
Continue work from home, if possible
For product-based companies working with artisans, some have encouraged artisans to work from home (if feasible), providing them with raw materials that are needed and making advance payments where possible. Other companies are holding on to inventory to ensure the burden does not fall on the individuals they work with.
Communication and empathy
In current times, showing compassion and empathy is extremely important. Communities at the bottom-of-the-pyramid have been deeply impacted by the health crisis – not only by the loss of expected income. The uncertainties around their jobs, the expanding ‘disease’ situation, and their daily lives being disrupted are expected to have an impact on their mental health as well.
Entrepreneurs can help by actively listening to issues being faced on the ground and communicating clearly on the status of the situation, what they think about resuming operations, and how it has impacted the business. Our entrepreneurs are also reassuring their jobholders that, although it’s a tough phase, this too shall pass, and support will be provided where possible.
For the organisation
Business shifts: New products / adapting to market needs
In survival mode, many of the companies we work with have quickly adapted to producing masks since there is a high demand for them. Some are exploring and pivoting to other products, setting up new product lines to meet future demands as well.
The crisis has taken a hit on sectors such as retail and hospitality in particular, and a few of our partner companies focused on these segments are shifting and re-thinking their strategies for the future. Businesses, for example, might consider shifting focus (and very quickly) from B2B to B2C, focusing on online channels, and exploring other alternate channels for marketing & distribution.
Collaboration
We’ve seen some companies actively looking to collaborate to sustain operations at a basic level. For example, those that had figured out their supply chain are partnering with other organizations to source products which would meet existing market demands.
With resource constraints and operations mostly at a standstill, now more than ever is the time to partner with other organizations with complementary skill sets and access to resources.
Negotiate
In these times, with operations and revenues at a standstill, one of the biggest challenges is to manage overheads and protect cash flows. To keep their business afloat and maintain sufficient cash over the next few months, entrepreneurs have had to negotiate with their suppliers, vendors, and landlords to relax existing terms and also ask debtors to clear out any remaining balances if possible.
Communicate with your team
This is a tough phase where companies will be fighting for survival for the next few months. Entrepreneurs have reiterated the need to keep all team members informed on what the business is going through and even bring team members in to brainstorm on solutions. Even for difficult conversations around salary cuts (deferred or temporary) due to a cash crunch, communicate with transparency and ensure team members are comfortable. You might also be surprised with the kind of support team members will provide to you and the organization during this period.
Planning
While this crisis has changed things drastically for small & growing businesses, it has also given entrepreneurs the time to step back and reevaluate their future plans – even though things are still fairly uncertain. Entrepreneurs have gone back to the drawing board to re-think strategies for at least the next two years, identify the best- and worst-case scenarios, and plan for whatever lies ahead.
Do you run a small and growing business working to sustain and create jobs to lift people out of extreme poverty? Upaya is always looking to invest in and accelerate companies that share our mission to create dignified jobs. Click to learn more about the accelerator program or apply for Upaya investment!
Contributors: Rachna Chandrashekhar and Sruthi Shanmugam
