It is no news that the crisis that is coming upon it can be disastrous. After the end of the pandemic, with an increasingly uncertain date despite the start of vaccination campaigns, the effects of the recession right now are incalculable, with great doubt flying over whether recovery will really be as fast as the experts believe. The business sector, in the same way, will suffer the severe consequences of the coronavirus, and therefore it needs to adapt to the new times that come.
According to the World Bank, extreme poverty will increase for the first time in 20 years, and the number of people living on less than $ 1.90 in the world will increase by at least 50 million by 2021. Similarly, Oxfam has recalled that the pandemic will lead Spain to unprecedented levels of poverty, Leaving one million more people below the poverty line, reaching 10.9 million people.
Wafa Khlif, professor of Management Accounting at TBS in Barcelona and head of research laboratory at the business school, in exclusive statements for ‘Bolsamanía’, has no doubts that an unprecedented recession is approaching: “This crisis is expected to be the most violent since World War II.” “The effect on business will be almost immediate,” he adds.
With the latest data from the National Statistics Institute (INE), corporate turnover fell by 9.4% in November, Adding up to nine consecutive months in negative. This data highlights the problem facing the sector, with the largest falls in services (-18.6%), trade (-9.4%) i electricity and water supply (-6.9%), while
In this regard, Khlif believes that the Arabic proverb of “the disaster of one man is the opportunity of another” has been put into perspective. Thus, businesses belonging to the hospitality and small business have collapsed “in front of others that have flourished”, Such as those related to the pandemic, the health sector, and others indirectly related, such as consulting or alternative transport companies, among others.
ADAPTATION OR INVESTMENT?
The TBS professor values that companies, through the application of adaptation strategies, “have strived to modify their behavior in order to create or strengthen competitive advantages. which guarantee a satisfactory level of performance“The problem comes when this process is carried out” without knowing past experience, existing models and socio-political speculation. “
Therefore, he states that all this ceases to be useful because “the future adaptation strategy it must be based on rupture and sacrifice“, Two imperatives for which companies, at this time,” are unfortunately not prepared. “
As for the business models that will succeed in the future, he explains that the democratic component is fundamental, Putting humans at the center of the debate: “What can we do together?”. He clarifies that, in this regard, companies should “value skills and not start firing people to alleviate their costs.”
He also points out that there is two labor aspects that have been consolidated with the pandemic. On the one hand, business focused on the individual and based on psychology, well-being, medicine or sustainability; and on the other, those focused on pure technology, such as automation, the Internet of Things or finance. In general, “all professions that bring into play what is human or technology.”
However, Khlif estimates that both ends could self-destruct at any time in the face of current and future uncertainty. To address this, “a redefinition of the notion of responsibility must be at the heart of our policies,” on how to re-learn to live and work together.
THE FUTURE OF BUSINESS, IN THE AIR
Months of uncertainty in the economy are approaching, and the decisions people make are more exposed to risk and doubt than ever before. Khlif considers that the basic problem is learning, Based “fundamentally on superficiality and technicality.” “Citizens are rediscovering that learning does not stop at graduation and that coexistence is first and foremost to debate and respect the other in their difference. The long-term entrepreneur observes what is missing for to a better society and not just looking for market opportunities, ”he adds.
Investment is another prominent component in the face of tomorrow’s business financing, and the professor suggests that it is “based on a belief system.” In this regard, he states that “the best investments remain responsible and diversified investments, Although they really depend on the level of risk aversion of each, “in the same way that”it cannot be saved passively and expect a double-digit return on investment “.
With these predictions, however, Wafa Khlif believes that no one knows what the future holds for business. “The best way to deal with uncertainty is to be open to everything, even to the collapse of the current system.” Faced with this, he calls for companies to “accept change, recover, face their fears and mistakes, and accept new challenges.”