Covid-19 pandemic has shaken the entire world that too in the most dramatic way. From personal to professional life, this pandemic has taken overall. However, businesses have suffered more than they have ever before. Start-ups have come crashing down. restaurants and cinemas have shut down. All in all, no aspect of life has remained untouched by this global disaster. It is high time for the global business community to come together and support each other and get the economy to get back to its feet. However, recovering from this global pandemic might not be as easy as said. It may take years for the economy to recover. There are a few things that economies have learned from this pandemic. Some of these things include:
- The world needs a multi-policy approach that caters to everything from climate change, public health, the resilience of the economy as well as demographic risk.
- We need to coordinate as a global community
- We need technology to fight the anti-virus war.
The above-mentioned findings have proved that every aspect of life is in the dire need of a technological revolution. This is the only way we can overcome the sudden economic crisis and prevent similar economic disasters in the future.
Why is technology important for economic growth?
The past few months have not been less than a train wreck for the economies all across the world. COVID-19 has spread all across the world and for the first time in modern human history, humanity is subjected to a shared experience. the majority of the economies of the world are still struggling to grapple with the crisis at hand. However, the bigger economies such as China and Australia are now on the frontline to adapt to the post-pandemic societal and economical changes. These countries are working towards stabilizing their domestic economy. they have understood that tech Startup investment can boost economic recovery. The only ray of hope for the falling economies is to adapt to modern technology and make it a part of every industry.
What makes Tech-Startup companies the enablers of economic growth?
We are going through the times of slowed growth. A big percentage of people across the world have lost their jobs. countries all across the world need new policies to stimulate economic growth which in turn would create new jobs. Tech businesses are some of the fastest-growing industries that have been least impacted by the pandemic. This industry creates millions of jobs every year. This makes the tech industry is the enabler of development, revolution and modernization.
Today the majority of the world’s population uses technology. Mobile subscriptions are touching the global population figures. Even during the pre-COVID-19 days, to stay in the competition, economies had to make ways to leverage the latest technologies.
Technology brings in such tools and knowledge that enable the effective and innovative use of economic resources. These resources are then utilized for the production of goods and services. To rebuild the economy after the pandemic has passed, it is important to make the advanced technology available for all. this advanced technology will enable the growth of the local and global economy.
Following are the ways technology can boost economic development:
We all know by now that time is money. Technologies such as AI and ML enable us to save time and invest it in more profitable tasks. it reduces the time it takes to produce a good or make service available. The saved time contributes to the overall profit earned by a business. To rebuild the economy in less time after the COVID-19 pandemic is over, we will need technology to boost the production of goods and services.
Contributes to the efficiency:
Technology adds to the efficiency of the output rate for any business. it does so by allowing the production of larger quantities of goods. It requires less time and effort to move goods or to render services. improvement in efficiency can boost the production of goods and services.
Division of labor:
Technology has made it possible to divide the labor to increase the efficiency of the business output rate. it has led to the specialization of roles within an organization. This contributes to the efficiency required by a business to run. Technology enabling the specialization of roles can create more jobs for the people who have lost their livelihood due to the COVID-19 economic recession.
Access to Natural Resources:
Technology has made it easy for companies as well as the government to easily access natural resources. It has not only taken care of the labor-intensive roles but has also added to the accuracy of the results by eliminating the chances of human error. It has also enabled the best possible use of these resources to benefit businesses as well as the economy.
The Expansion of Industries:
Technology has added to the efficiency of labor. Using the ever-evolving technology businesses have succeeded in increasing their total outputs. This has eventually led to an increase in economic development and profit percentage.
Advancement in research:
Advanced technology has led to further research regarding every area of science as well as business. this research can open new possibilities for businesses and job seekers to make their place in the market. The advanced technology will also enable us to fight the anti-virus war.
Enabled International Trade:
One of the driving factors of the growth and success of international trade is the information technology. technology is enabling the job market to grow. Today, businesses can easily share information and get their requirements met in a matter of time. This also makes it easy for businesses to conduct trade in the blink of an eye.
How tech-startups boost the economy?
Tech startups are transformational startups. They have the most significant impact on the economy. the majority of the tech startup investors aim to extend their operation internationally or nationwide. According to recent reports, the number of tech startups is growing more rapidly than ever before. Tech startup business plans have the power to boost economic recovery in the following ways:
The use of advanced technology:
Tech startups focus on cutting -edge innovation. They believe in making the latest technology as a part of their operations. There is no multi-layered bureaucracy to intervene. These startups can turn an innovative idea into a product. For them, the preferences of their clients matter the most and they improve their products and services accordingly.
Opens new opportunities:
Tech startups are responsible for creating new markets. They can transform old markets by launching innovative products that could change the world. Tech giants such as Google, Apple and Facebook were once small startups. Today they drive the US economy recovery and create more jobs than any other industry.
Improvement in efficiency:
Tech startups make the higher technology and business solution available to all. this technology and tech-solutions add to the efficiency of the production of goods. This technology also makes services accessible for all.
Creation of job opportunities:
Today, tech startups create the majority of the jobs. since, people need jobs more than ever before, these startups can provide them with opportunities to stand on their feet again. high growth tech firms add 25% more jobs to the economy, empowering its growth.
Direct impact on the local economy:
Tech startups have a direct impact on the cities they have emerged from. a great example is Microsoft and how it has transformed Redmond. Tech startup investors create an inflow of wealth and bring in professionals from all across the world looking for jobs to their cities. This enables the growth of the local economy.
COVID-19 pandemic has brought the global economy down to halt and it might take years to build it back to where it once stood. Today, tech-startups have access to the most advanced technology. The young generation has such startup ideas that can drive the economy. however, they fail to execute these ideas due to the lack of investment. Governments should invest in tech-startups to kick start the regrowth of their economy while we are in the middle of a pandemic. This will help the global economy to get back to its feet once things take a normal turn.