2009-12-23
About six months ago, entrepreneurs around the world were deeply concerned about the recession. Although we can now experience a somewhat more stable situation, many companies are still struggling for their survival.
During the current recession, many companies have lost 30-50 percent in turnover. It is obviously tough conditions to face and often the acting space is reduced while it is necessary to act.
I've seen recessions and their effects before. What I am fascinated by this time, more clearly than other times, is that Swedish entrepreneurs are so adaptable to the changing demand. They have through great creativity, and by taking various measures, made operations stay in balance despite the greatly reduced demand.
The companies have reviewed the costs that are critical to the operation and therefore could be considered as investments in business continuity. In regard to costs that can be dispensed or reduced in the current situation, there have been substantial cutbacks. Many have made it through without having to terminate key employees, sometimes by making the staff work shorter hours.
In drastic cases, I have seen entrepreneurs that have mortgaged house and home - they believe so strongly in their business that they are willing to invest their private economy for the company. Such confidence can be very important for the company´s success in the long run. While we cannot ignore the difficulties and take reckless risks, we cannot allow ourselves to be paralyzed by fear.
It is not only by reviewing costs that have enabled companies to survive. They have also found new sales channels, new customer groups, new international markets and developed new product segments. Some companies have taken advantage of the acquisition opportunities that arise during the recession. They have bought activities that are consistent with, or complement their own core business.
Others have taken the opportunity to recruit skilled employees from the companies that were forced to staff reductions. Through acquisitions and recruitment, they have built up a strong organization for the future.
Entrepreneurs have shown great and strong entrepreneurship in ensuring possibilities for the business to survive. I am fascinated and impressed by this. I think Sweden's entrepreneurs will continue to meet future challenges with tenacity, resourcefulness and ambition.