Global Financial Analysts Predict Significant Economic Decline in the Next Two Years

By Luigi Wewege Friday, July 10, 2020

According to research by the World Bank, the COVID-19 pandemic could leave global economies in a severe recession beyond 2020. Per capita income is expected to shrink, and millions of people will fall into poverty.

For small businesses, the outlook is equally grim. Many businesses have had to close their doors due to economic injury directly caused by the pandemic. However, several small businesses have continued to thrive despite the financial downturn.

In this article, we examine the most important traits of businesses that are combating the effects of the COVID-19 pandemic.

Adaptability

Businesses with high adaptability can accept facts, new ideas, and solutions. At the same time, they are also accepting of their defeats and setbacks. While this might not sound revolutionary, adaptability has been considered a classic principle of many successful companies. 

However, it's important to remember that a critical element of adaptability is speed. Those who react first can get ahead of their competition and prosper when others are not.

Confidence

Confidence is the most valuable currency of all. In a time when employees are not gathered into one office, and superiors cannot watch worker’s screens, managers must trust their employees. In turn, employees have to trust their managers and their plans. Above all, business owners must trust the whole staff and assure them of the future ahead.

An entrepreneur’s confidence must be trustworthy. How they choose to build that trust among their business will ultimately be up to them.

Risk Management 

Risk management has become the weapon of the new era. Identifying and handling business threats has become increasingly easier, meaning businesses can better prepare for the unexpected. To respond to rapidly changing conditions, business owners must increase the speed at which ideas and decisions are made. Indeed, task results can be tested even more frequently than they have been before. 

For example, IT companies have long-established day-to-day commit practices and code reviews. All team members send everything they write to the repository in one day, and the head checks their code and comments on issues in the morning. The very next day, any risk or inaccuracy is detected. The cycle of production becomes faster and safer.

Additionally, the number of completed tasks usually gets through, because significant errors have almost no time to occur. If they do appear, the elimination of them in small segments is more natural.

In this example, ideas and decisions are taken quickly, implemented, divided into small pieces, and tracked both quickly and efficiently. Risk-covering costs are lowered; task success is increased. Employees have gained trust in their bosses, seeing positive progress and detailed preparation.

Strong Relationships

Many business owners have used the pandemic to strengthen employee bonds. Many companies are now communicating through video platforming networks such as Skype and Zoom. Communicating with your staff when they are relaxed and at home can create a very positive atmosphere and help your staff members bond.

Consider setting up a WhatsApp group with your workforce and don't always make it about work. This way, your employees might start associating warmer feelings toward their work.

The Evaluation System 

Implementing a solid evaluation system can encourage employees to work harder, recognize good employees, and increase workplace communication. An evaluation system can also help determine areas of improvement within the workplace and allow business owners to test new tactics.

For example, Microsoft’s Japanese branch experimented with workplace hours just before the crisis: workers were moved to a 4-day work week, reducing the number of working hours by an average of 20%. At the same time, the report noted that work efficiency increased by 40%.

About the Author


Headshot of author Luigi Wewege

Luigi Wewege is the Senior Vice President, and Head of Private Banking at Caye International Bank. Outside of the bank, he serves as an Instructor at the FinTech School which provides online training courses on the latest technological and innovation developments within the financial services industry. Luigi is also the published author of: The Digital Banking Revolution.

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