WHAT IS HAPPENING TODAY IN A NEW BUSINESS WORLD?

In this writing, I am going to talk about what is happening in the world due to the pandemic. I will do it from a business perspective to understand this new business world.

Firstly, it is clear that the customs of people around the world have changed. Regardless of country, race, religion, or political orientation, nobody is the same as it was a year ago. Families, in general, have had strong changes in their internal dynamics. The confinement has caused people to have to live all the time in confined spaces. Homes now are a kind of prison, in which new rules of relationship have emerged. Reinvention, which is perhaps the most used term these days, has been a reality within family structures.

This is a new business world

Secondly, there is the economic impact that this pandemic has generated. With travel restrictions, there is no more tourism. Companies in this industry and others related have suffered a break on their income. As a result, an internal restructuring that has generated mass layoffs. The restrictions to enter or stay in all public places have generated the same impact on income for other businesses. Restaurants, theaters, bars, clubs, shops of all kinds have had the final closure or recess in their commercial activities. In addition, layoffs and stops in supplier purchases, which means loss of income for these suppliers and more layoffs. The economic impact of the pandemic is having a snowball effect.

Thirdly, we must mention governments and the financial system. Their role in most countries of the world has been to finance companies and individuals. Companies with special lines of credit and individuals with relief in the payment of their credits and granting new credits. The intention has been good, but it would only work if the problem had been for a few months. The pandemic is entering its eighth month and that does not seem to have any statistically foreseeable evolution. The growth of debts without improvement in income will cause a default and with it an even worse economic crisis.

“Then it is time for a new economic theory to emerge that saves the planet”

In conclusion, the current circumstances require everyone’s efforts to increase the income of families. With it, their consumption so that companies are reactivated and with them the entire economy. We must get out of the conflict of choosing between the economy or health because the two aspects must work. Then it is time for a new economic theory to emerge. A theory that saves the planet from what could come if we continue where we are going.

The challenge for companies is to require from households the work necessary to carry out their function. Thanks to the payments for the work they do, households will be able to pay for their products and services.