Rebirth. Prospects for Small Businesses

From the very beginning of quarantine, entrepreneurs rack their brains on how to keep the business afloat. Experts name various scenarios for the development of the situation. We tried to find out which sectors of the economy have a chance to get a second wind after the crisis.

At the beginning of quarantine, several scenarios were considered. According to experts, the most proactive business is the one that will seek new approaches to meet customer needs and maintain constant communication with them, as well as adapt business processes to new realities.

The impact of motivation on consumer preferences

“There are two phases of motivation:“ motivation from ”- an escape from a problem, and“ motivation to ”- a desire for a new one. In 2014, when the Russian aggression began, many Ukrainians refused Russian goods and began to look for a domestic replacement. Then there was an incredible boom in "made in Ukraine" and interest in everything domestic. The “k” motivation worked. Today, the consumer again pays attention to the Ukrainian, but because the “motivation from” worked: the inability to go abroad and make purchases at sales, interruptions in the supply of imported goods and the like. All this stimulates demand for Ukrainian, ”explains Yulia Savostina, founder of the Made in Ukraine project. “It should be understood that the motivation to flee from the problem will work worse than the motivation that moved consumer interests in 2014. Even though most people save today, but in the end everyone will want to update their wardrobe, to please themselves with a pleasant purchase. People will be eyeing local manufacturers, small craft brands, ”the source said.

Change in Approaches

To stay afloat, companies must look for new approaches and solutions. For example, some brands offer to purchase certificates for their goods or services, which can be settled when the business starts. “I know a shoe brand that began to take pre-orders for certain models and sew them. Now they are working to meet real demand, and not sew off the model line, which will be in stock. The brand is aimed at direct cooperation with the client, satisfying his needs, ”the founder of Made in Ukraine emphasizes. And he continues: “I think the companies that will transform, use an individual approach to the client, regardless of the size of the business, will be able to survive this crisis with dignity.”

Forecasts for prospects
Is it possible to predict today? Yulia Savostina answers this question this way: “Whatever we predict now, it will be different. Today it’s hard to say which businesses will be able to rebuild. If this, of course, is not an online platform for work, study, hobby and leisure. For accurate forecasts, you need to understand how the country will quarantine and when it will end. ” But TheOwners project co-founder Mikhail Romanov makes the following forecasts: “Businesses related to the production, processing, and sale of food products will grow. These are retail, processing enterprises, the chemical industry, and logistics. This economy cluster will become the leading one. In addition, confidence in China has been shaken, many European manufacturers are ready to open production closer to Europe. For example, over the past four years, we have opened more than 200 new industries. This trend will continue taking into account the cost of labor and the location of Ukraine. The most attractive for foreign investors will be light industry: the production of fabrics and tailoring, the production of semi-finished products. The construction of industrial premises will also develop. ”
“Now the situation is good for those who produce home clothes. After the first two weeks of quarantine, food manufacturers began to recover. In order to survive and develop the business, they must loudly declare through all communication channels that they have delivery. Create chats for your customers. There are prospects for those who will constantly talk and remind themselves. Communication with customers today is the most important. Another option to keep the business is to negotiate with retail chains and start production there. Even if out of a hundred stores you can cover only three. Any cooperation will be appropriate, ”says Julia Savostina.
Prospects for the tourism industry
According to the founder of the Made in Ukraine project, the domestic tourism industry hit the jackpot. Today, some countries say that this year will be closed to foreign guests, while others, according to optimistic forecasts, will open until the end of summer. Therefore, Ukrainians - lovers of travel trips - will have to travel around their homeland. The main thing is that representatives of the domestic tourism industry wisely take advantage of the situation and are able to offer quality service at the right price. “I urge everyone who works in the tourism industry of Ukraine not to strive to earn all the money in one season, but to take a chance and prepare a solid foundation for work for years,” Julia advises.
“You need not be afraid if you even have to close the business. When a person is an entrepreneur, it is possible to close a business, but to kill entrepreneurship is not. If the business does not survive the crisis, such a person will open another one that meets the requirements of the times, ”Yulia Savostina sets up for positive.