Innovation as the Escape Route from Financial Slowdowns

Innovation as the Escape Route from Financial Slowdowns

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It is too soon to say that humanity has the upper hand on the Coronavirus, but data coming in recently is undoubtedly encouraging.

The United States, for example, recently saw a 19% decline in cases of COVID-19. This has been the case in multiple countries, even those that have been the most harshly impacted.

Whether it’s because of mass vaccination or the fact that people have learned to live their lives alongside the virus, recent numbers are leaving room for optimism. We’re talking about the lowest number of worldwide weekly cases of COVID-19 recorded since October 2020 and a continuing decline in weekly deaths as well.

While this does not mean in any way that the disease is behind us, it can mean that it’s time to talk about getting economies back on their feet.

Slowly and cautiously, the world will start thinking about dealing with the pandemic’s financial repercussions, which some consider no less harsh than the medical one.

Innovate, inform, inspire

As cliché as the saying above has become, it is incredibly relevant to today’s reality. The ticket out of this situation and onward is through initiative rather than responsive economy.

In other words, this is the time for thinking about new ways to get the economy’s wheels moving, rather than sticking to old patterns – which have shown they are not effective in this case.

The key to success, hence, is innovation and entrepreneurship.

This is the time for the human mind to create, formulate and generate new ideas. Governments, on their end, need to prioritize innovation and, naturally, to help fund it.

Allocating money to that cause may be just as crucial as COVID-19 relief since this is actual economic relief – for the long run.

However, this cannot happen with governments pitching in alone. The private sector must make an effort to pitch in as well, each company, organization or person, should look to do as much as they can, in whatever capacity their situation allows.

Do not be mistaken, though. This is not about giving money away. This isn’t a charity. Think of it as an investment, which can both help the economy and pay off in the future.

There must be an angel

Continuing with this last point, investing in entrepreneurship is not just about money. There are many brilliant minds out there, filled with ideas for the benefit of humankind, which can provide a steppingstone out of these complicated financial times.

Sometimes, aside from funds, entrepreneurs need guidance and mentoring. Their ideas have the potential to do good and reap profits – they just need someone to show them the way.

That’s where angel investors enter the picture. Octavian Patra?cu, a professional investor with over a decade of experience in developing businesses, explains:

“An angel investor has two roles, both an important part of turning an idea or a startup into a full-functioning reality.”

First, the angel is responsible for funding.

We’re talking about first-phase funding, meaning the few thousands (or tens of thousands) necessary until a larger amount of capital can be obtained from financial institutions.

This is no gift, though. It’s an investment, and profits are expected off of it – usually when that larger sum of capital is obtained.

Second, and no less important, is mentoring.

It is the angel investor’s role to be there for the novice innovator for any question or dilemma they may have.

Some angel investors choose to actively participate in board meetings or hold a position within the organization, but that isn’t part of the role by definition. What’s important is that the angel investor provides knowledge and experience into the process of growth.

Angel investors in times of economic hardship

Every crisis also creates opportunities, and this is the time to rediscover the concept of angel investments.

Right now, a ton of new ideas on how to fight COVID-19 with the help of technology are stirring up in people’s minds. On the other hand, banks and funds are still hesitant about pouring money into anything. Only angel investors can bridge the gap, with their funds and know-how.

However, not everyone has the skills or ability to play that role. It takes more than just money. An angel investor needs to have the vision and the patience to see the process through the whole process is doomed to fail before it even begins.

Wrapping it up

By providing support for entrepreneurs and innovators, we open up new opportunities for financial growth across virtually any industry.

Innovative solutions to the emerging challenges we face due to the pandemic and its impact are changing the way we do business. They are changing healthcare, altering business communications and so much more.

These innovations, and the support of the entrepreneurs and business leaders behind them, can help pull the world out of a financial crunch, generating new growth and opportunities across all sectors.

The more we look to support startups, entrepreneurs and others who are seeking to make a positive impact on the world, the more quickly we can pull out of any financial impact the pandemic may have caused. And in the process, we can change the world.

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Author: Anthony Gaenzle

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