Baruni Verma, CEO, Starkle (gold jewellery brand)
There is little doubt that a global recession is imminent. Previously, the exposure of our economy to global economic trends was relatively lower, which shielded us from the adverse effects of the 2008 recession. However, this time may be different.
The previous decade has witnessed the sprouting of India-based offices of several global corporate behemoths and the massive inflow of foreign investment into start-ups. However, a string of layoffs heralded by companies such as Byju's and Twitter with others expected to follow suit has a lot of individuals worried for their jobs and livelihood. What follows is a decline in spending by consumers which directly impacts businesses.
A global recession will also impact start-up funding, putting several budding businesses in a compromising position. Exports are one of the key drivers of our economy and have experienced immense growth, particularly in IT services in the past decade. Now, while the exporting businesses have boomed, they are also more exposed and will be directly impacted by the declining global demand. What can businesses do? Keeping costs low is essential to the survival of any business during a recession. As a start-up founder working with a small team, we are always on the lookout for new technologies that can help us improve our operational efficiency. The key is to take full advantage of the resources available to you. Several small businesses in India have opted for the online-only route, allowing them to save on high rents. Services such as cloud-based accounting, online marketing tools aggregators and cloud-based workforce and inventory management have been a great boon in helping businesses operate and grow without the need for excessive spending.
- Baruni Verma, CEO, Starkle (gold jewellery brand)
