Coronavirus has made the future of entrepreneurship digital, greener and more diverse

As Covid-19 accelerates consumer acceptance of the digital economy and entry barriers fall, more young people will choose entrepreneurship over salaried jobs
They will be the ones creating innovation, ensuring sustainability, and building safe, equitable, strong economies that benefit everyone

Kawal Preet

Published: 4:15pm, 4 Apr 2021

Why you can trust SCMP

The pandemic has had a devastating impact on the US$90 trillion global economy – from job insecurity and rising unemployment to huge levels of stress on people and health-care services. However, we have seen positive developments emerge: small firms tapping into e-commerce for the first time, greater use of technology and more flexibility in the workplace.

For “Generation Next” – young people just entering the workforce wanting to break away from salaried jobs – being an entrepreneur is fast becoming the top option. They will be the ones creating innovation, ensuring sustainability, and building safe, equitable, strong economies that benefit everyone.

We see three key trends shaping the future of entrepreneurship.

First, the model for global entrepreneurship is evolving quickly. The future will be defined by digital and built on agility and resilience. It is these skills that entrepreneurs increasingly need to have – not just critical thinking or problem-solving. The World Economic Forum’s Future of Jobs survey finds rising demand for skills such as active learning, stress tolerance and flexibility.

We have seen how companies that moved quickly during the crisis had a strategic advantage over competitors. Today, people can work and buy goods from anywhere. With millions working from home, firms that delivered fast and exceptional service gained loyal customers.

04:17

Online course on egg tart baking is recipe for pandemic survival for Hong Kong food tour operator

Consumer expectations have changed and people are much more at ease with new technology. The Covid-19 disruption has clearly been a catalyst for digital entrepreneurship, helping to lower barriers to entrepreneurship and making it easier to become a global entrepreneur.

Websites and platforms that integrate a tech stack enable small and medium-sized enterprises to market products to a wider audience, with better connections between buyers, sellers and partners. While these shifts are not new, the acceleration we have seen through the pandemic is. Businesses that once mapped digital strategy many years ahead have been able to scale those same initiatives in a matter of days or weeks.

Second, as the world enters an exciting new age of entrepreneurship, there will be more women, young people and other entrepreneurs from diverse backgrounds. Access to technology will enable start-ups from Ghana to Cambodia to participate on the same global stage as those in more developed countries.

As barriers to entrepreneurship fall, we will see much bigger opportunities for young people everywhere, all contributing different talent and points of view.

03:35

Meet Hong Kong’s Coffee Lam: the first Cantonese-language YouTuber with 1 million subscribers

So, it is important not just to “teach” or guide entrepreneurship, we need to embed it in post-pandemic recovery and reset things. It is how we work to find, fund and support the next generation of start-ups and entrepreneurs that will drive long-term recovery.

Asia is fortunate to have some of the most thriving start-up ecosystems in the world. There is a lot of support for new entrepreneurs and venture capital models, with e-commerce and cross-border trade booming. But there is still not enough focus on the practical elements of scaling up and growing a global business. Getting into the intricate detail of supply chains, trading across borders, and government regulations is complicated, and start-ups need help from leaders in every sector.

Third, the pandemic has changed how we all work – possibly for good. Future entrepreneurship will be defined by new solutions that work anywhere.

Technology is creating an environment that is location-independent, mobile-first and social-commerce-centric. The new generation of successful entrepreneurs are already digital nomads. They adapt best practices worldwide for unique situations within their markets.

06:09

Chinese online star Li Ziqi provides an escape from urban life

At the same time, entrepreneurship, like business itself, will increasingly be linked to purpose and not just profit, leading to much greater social entrepreneurship in years to come. Sustainability is crucial to the future of entrepreneurship. Green technology will drive the next wave of global innovation – from electric cars and batteries, to strong growth in climate-focused start-ups.

Successful entrepreneurs will be those who can surf the next wave of innovation. The reality is that entrepreneurship happens both in and outside established companies.

In the old days, education focused on entering university or a full-time job with an employer. Increasingly, becoming an entrepreneur is the first choice.

As we look beyond the pandemic, it is clear that entrepreneurship will not return to what it was. It will be even better. Future entrepreneurship has the potential to be the ultimate global equaliser, creating many more opportunities for many more people.

Kawal Preet is president, Asia, Middle East and Africa (AMEA) region, at FedEx Express