The COVID-19 pandemic saw unprecedented upheaval as businesses and people struggled to work under the new normal. Not surprisingly, the economy went into recession, contracting for the second consecutive quarter (July-September) in 2020. However, behind these gloomy headlines, there lies a glimmer of hope. Even as India recorded its first official recession, the figures were better than the first quarter (April-June).
The other more heartening story is the emergence of Indian startups. For these fledgling businesses, the pandemic proved to be a mixed bag, with some of them barely surviving, and others recording a boom in business. The success of these startups provides valuable lessons in strategic risk management for Indian entrepreneurs.
Importance of risk management strategies
The pandemic exposed the lack of sound disaster management strategies, among Indian startups, in a volatile market. Entrepreneurs, who need to prioritise their limited resources, often neglect the development of disaster management plans for fear of overextending themselves.
However, during the COVID-19 pandemic, edtech startups that showed initiative in adapting to a changing environment were…
