The global pandemic has caused a lot of damage to young startups. More than that, new startups cannot thrive in every industry, since the working mechanism for each industry is different. Where some industries are suffering due to lockdown, others are suffering because of changes in consumer behaviour. Due to financial crisis being faced by many families across the globe, consumer spending choices have altered for various industries. Mega companies, business giants and startups in some industries (especially luxury) will have to suffer this even after COVID-19, as households continue to concentrate on their savings. As consumers shift their priority towards buying necessities and avoiding spending on luxurious products and services, not only are the owners and entrepreneurs getting effected, but the employees working under them are also facing similar consequences.
Considering lockdown and tangible limitations, industries like hotels and accommodations, travel and tourism, home maintenance agriculture and banking have seen the least emerging startups, since the rise of COVID-19. Where cultivating new ways doesn't seem like an option, a lot of startups have to revision their business models.in order for things to actually work. With additional employment being scarce, it has also become necessary for these startups to keep their employees motivated. Have a look at this data regarding startups in either their initial year, or those that are planning to be launched soon.
Infographic by: Score.org