With global discussion increasingly anticipating a recession and stock market crash, many businesses are worried as to how they might fare. But challenges abound for businesses all the time, and many show their worth by being adaptable to these volatile changes. What factors may impact how businesses fare in an unpredictable economic future?
Social Responsibility is Important
The Black Lives Matter campaign has been heard around the world and has acted as a catalyst for corporations to showcase that they not only practice what they preach, but that they are using their business platform to spread a positive message. Companies that show their socially responsible credentials are more likely to be patronized and seen as an asset to keep in business.
While some suggest businesses have no place speaking on social issues, others argue that if businesses are to benefit from the cache they hold in society, they must respond to that society. In a world of technology and communication, to ignore huge, revolutionary global movements reflects poorly on the company.
For example, several Canadian streetwear brands have used their businesses as a platform to address issues brought up through BLM. Peace Collective, Roden Gray, Reigning Champ, wings+horns, and Raised By Wolves have all made gestures that backed up socially conscious credentials, including donating profits and making important statements.
Many businesses are redrafting their social credentials not just for BLM, but for their stance on eco issues. For example, Ellie Bianca is a sustainable skincare brand, whose Kenya-born founder has established a foundation to help single mothers continue their education after high school.
Digital Businesses to Thrive
In 2020, the kinds of businesses that may weather any economic storm are those which are fully repurposed to offer digital services. Recession-proof businesses may be those who are seeing a surge in business anyway, who have been able to operate with limited outgoings and a mainly online setting. These kinds of businesses are most likely to respond well to economic uncertainty, especially if proven to be adaptable to rely on these digital skills.
For instance, Toronto-based Great Lakes Brewery, who had previously focused on business-to-business deliveries, altered their business model to deliver to consumers in a bid to benefit from a surge in online orders. Meanwhile, other companies have been able to increase their existing online order capabilities, such as A Different Booklist, which focus on texts around the African-Caribbean diaspora.
Digital businesses would also look favorable on the stock market, which helps to ascertain the future of a business as well as having its value defined by past performance and present opportunities. Indeed, there are stock market opportunities for companies that will thrive online, such as those who develop online casino gaming software like NetEnt, listed on the Stockholm Stock Exchange and IGT on the New York Stock Exchange.
Recessions are part of the economic system that exists around the world. Boom and bust cycles are to be expected and any upcoming recession has been predicted by economists for some years. But businesses shouldn’t despair too much. There are factors which could help them survive, such as showcasing their social responsibility and ensuring they have digital provisions in place. The kinds of businesses likely to survive and thrive in any economic downturn will have adapted to new challenges the past decade has brought.
