COVID has certainly been a Black Swan Event. No one could have ever predicted that we would be forced to stop our lives and alter the way we interact with people. Out of this black swan event came innovation and determination for businesses across the United States. Businesses went digital, and for some, it may mean that they remain a mostly digital company for many years to come.
What is a “Black Swan Event”?
To better understand how the pandemic has impacted us and will continue to impact how we do business, let’s start by understanding what exactly is a black swan event. In the world of finance, a black swan event is an extremely rare event that cannot have been predicted, and has a severe negative impact on the economy. After the black swan event has occurred, people will rationalize the event as having been predictable.
Why Are So Many Businesses Popping Up?
Even though we are living in a black swan event, it hasn’t stopped thousands of new businesses from opening and even thriving throughout this time period. In fact, according to government data, in 2020 Americans were starting new businesses at the fastest rate in more than a decade. Why is that?
For starters, there’s an increased demand for assistive and delivery services. As people remain indoors, they want help doing things that are unsafe to do on their own. Businesses took advantage of the increased demand and started unique delivery services and assistant services.
Another reason why some businesses have thrived during the pandemic is that people are looking for fun, safe activities to do. People have been starting businesses that help people stay entertained as they remain in their homes or socially distanced from others. Some examples of these types of businesses are drive-in movie theatres, game makers, and streaming services.
The Lasting Impact of COVID on Businesses
Even if COVID recedes or becomes endemic like seasonal influenza, it will have a lasting impact on businesses. Throughout 2021, you can expect to continue to see remote businesses and high demand for delivery services. You can also continue to expect to see more businesses open and thrive throughout the year. This is because, after a black swan event, people find new ways to innovate and bounce back.
MAGIC, Helping Businesses Thrive
Do you have a business that you would like to start? MAGIC is here to help you. Our mission is to build a tech ecosystem that creates and nurtures talent, entrepreneurship, and tech businesses, elevating the Westminster Gigabit Community to lead the Mid-Atlantic. Attend one of our events catered to techpreneurs, or contact us with any questions or concerns. We can’t wait to hear from you.