By Dr Sébastien AparicioOctober 2020
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One of the negative consequences of wars, crises and pandemics is social degradation. People find themselves with destroyed property, unemployed, in poverty and on the verge of death. Many examples exist around the world, both in developed and developing countries.
The first group experienced an economic collapse in 2008; it will take approximately five years to begin the recovery process. During this period of financial crisis, countries like Spain, Italy and Greece experienced unemployment rates above 20%. The second group was characterized by different problems, although one factor was common to all these countries: violence. The mass exodus caused by terrorist attacks in Syria, political violence in Venezuela and 50 years of civil war in Colombia are just a few examples.
Despite the differences between developed and developing countries, the entire world is currently experiencing an unprecedented situation, which affects everyone, regardless of income, gender, race or religion. According to the World Health Organization, more than 15 million people have been infected and more than 600,000 people have died due to the coronavirus (Covid-19) since the start of the pandemic in December 2019 until July 2020 ( and we don’t know it). I don’t know how long this will continue).
Coping with the pandemic
Most countries are looking for solutions to the pandemic, but the virus is spreading so quickly that containment is proving to be the best option to stop exponential transmission. As a result, the global economy is close to a new period of economic crisis, which will further increase levels of unemployment and poverty, among other social indicators. Some people will have the ability to recover through their own savings or government assistance, for example; but those who are very vulnerable risk falling into poverty.
Unfortunately, not all countries are able to increase public debt to international financial organizations, which could mean that their ability to cope with the current situation is very limited. If so, what else can be done? Society itself could be the answer to this riddle. There are examples of how humans help each other, but also other species.
For example, the recent bushfires in Australia have claimed the lives of many people and animals. During this period, many people risked their lives to help save those who were stuck and different organizations launched aid mechanisms to support those who needed help.
What we are currently experiencing could serve as another example; some countries, for example, are mobilizing different actors to create solutions to mitigate the consequences of Covid-19. China, where the pandemic began, has sent scientists and doctors to other countries to spread awareness about ways to reduce the effects of the virus. Additionally, China and other countries, such as Germany and the United Kingdom, have started working on a vaccine.
Entrepreneurial solutions
Entrepreneurs and SMEs also contribute. In Spain and Colombia (and this is expected to progress in other countries), some entrepreneurs have solved the shortage of cleaning and health products by manufacturing artisanal or homemade products such as masks and gloves. Alongside universities, other entrepreneurs have worked on respiratory devices, essential in overcrowded hospitals.
It seems that our own orientation towards social progress is the remedy and solution to solving certain social problems and helping those who are most vulnerable. In a recent study published in Entrepreneurship Research Journal, David Audretsch (of Indiana University), David Urbano (of the Autonomous University of Barcelona) and I show how the existence of an orientation towards social progress leads people to contribute to society through entrepreneurial solutions.
A cross-national analysis allowed us to understand that characteristics such as civic activism, the spirit of volunteerism and the inclusion of minorities motivate entrepreneurs not only to increase national production, but also to reduce the level of poverty. The argument behind this data is that entrepreneurship has proven to be a mechanism for inclusive growth. In other words, some cultures support entrepreneurs, who are constantly looking for ideas and projects that turn into concrete solutions for everyone and that help excluded people to participate in the economic system. Entrepreneurs therefore represent companies’ intentions to solve problems and evolve.
More information on Dr. Aparicio’s Research Interests.
