LETTERS: Malaysians are becoming numb to the mention of Covid-19 and its effects. Multinational corporations and small- and medium-scale enterprises (SMEs) are shutting down or downsizing, leaving families in dire situations.
With unemployment soaring, creating jobs is the most logical solution to tackle this problem.
The Department of Statistics Malaysia said SMEs comprise 98 per cent of businesses in Malaysia and contribute to about 40 per cent of the Gross Domestic Product, while accounting for 48.4 per cent of jobs in the country.
This situation presents an opportunity for entrepreneurs. The notion of a start-up is twofold: to secure income and create jobs.
New start-ups can impact communities through their innovative goods, services and job creation.
So when is the best time to start a business? Is there ever a right time? Companies have turned a crisis into an opportunity.
In 2008, Uber and Airbnb took advantage of the financial crisis by identifying gaps in the market to start their business, and have transitioned into billion-dollar start-ups since then.
Recessions have forced layoffs, retrenchments and lower salary packages. Entrepreneurs should leverage the situation. They may find the right partner or hire talent they previously could not afford.
Rent, utilities and interest rates have dropped and can help people start businesses at a lower cost.
While customer acquisition costs are usually the No. 1 stumbling block for new start-ups, the pandemic has changed the landscape by lowering customers' propensity to try new products.
In addition, online shopping is growing at an exponential rate, where businesses can reach customers at a lower cost than brick-and-mortar retail.
The pandemic has revealed the resilience of Malaysians in doing business. During the first lockdown, many SMEs surfaced to provide face masks, hand sanitisers and healthcare items at competitive rates.
Entrepreneurs were born as they used social media to peddle home-cooked food, handcrafted items and accessories, while using the live-show features to engage, entertain and sell.
This was made possible by other entrepreneurs who initiated ventures in supporting industries, such as logistics and digital marketing, to keep up with this surge in demand.
Since then, the government has created new initiatives to support entrepreneurship. The 2021 Budget's RM322.5 billion includes training entrepreneurs, promoting Malaysian-made products, micro-financing small businesses, tax breaks and research and development.
Portugal, the largest exporter of bicycles in Europe, expected dwindling sales and exports due to the pandemic. Instead, what they experienced was a surge in demand for bicycles due to people's fear of close contact in public transportation.
Starting a business requires commitment and courage. The risks are great, but the rewards are greater.
Dr Vincent Yeo
School of Management & Marketing, Faculty of Business & Law, Taylor's University
The views expressed in this article are the author's own and do not necessarily reflect those of the New Straits Times