The Rise of the Necessity Entrepreneur

“T here are times when regionally, nationally or internationally, unforeseen events rock the very foundation of an economy. COVID-19 has been devastating on so many fronts. Never in our lifetime have we faced such a challenging period or witnessed such severe damage to Scotland’s economy. “As the global pandemic enters its sixth month, measures are being introduced to help recover from the crisis. For Scotland, our economic recovery will start once the market bottoms out, however we cannot forget the market hates uncertainty and right now we are entering unchartered waters. “The Scottish and UK Governments have artificially propped the economy up, reinvesting considerable sums in the wake of an almost complete lockdown. Without this intervention, the economic cost would have been incalculable. Still, a snapshot of where businesses are today is not an accurate reading of where the economy is positioned. Constraints still remain and the post COVID-19 market correction awaits us.

“As a better, more defined road to recovery starts to emerge, it is vital to recognise that our economic correction will begin. Normal trading rules will once again dictate how the business community will stabilise itself. Business owners will need to move quickly to predict the speed of traction that will return and what effect longer lasting social distancing rules will have on their ability to trade efficiently and profitably.

“These decisions will inevitably lead to a rightsizing of their teams - redundancies and restructuring. “Redundancy is a worrying scenario for most people; yet in Scotland we have cultivated a dynamic, entrepreneurial culture and – as with previous economic crises, we expect to see a spike in those who look to take their future into their own hands. The next wave of agile, necessity entrepreneurs. “Starting a business out of necessity is not ideal, it makes the journey inherently more fraught. Of course, necessity is the mother of invention; having a need to eat, feed a family or cover a mortgage is a strong driver but on its own it is rarely enough to bring ultimate business success.

“Both ‘innovation driven entrepreneurship’ and ‘opportunity driven entrepreneurship’ have a very different starting point. These businesses begin life through a well thought out approach, filling a gap in the market.

“Identification of opportunity is often the ignition point for entrepreneurs. There follows a period of deep understanding of the issues, how they are being addressed by others and how it can be addressed better. These are the foundations of a successful enterprise.

“When the starting point of a new business is not the identification of opportunity but rather a more inwardly focussed need or desperation to be busy doing something, the foundation stones are rocky.

“As an organisation endeavouring to supercharge the economic growth of Scotland, these times present challenge and opportunity for Elevator. We are faced with ensuring few people as possible make the mistake of believing that drive alone will bring results, we must also ensure that new entrepreneurs are equipped to deal with the journey ahead.

“Launching countless wellintentioned but flawed new businesses into an already fragile marketplace is folly. Our job is to take the hunger, add the knowledge and understanding to those willing to slow down, learn and thus maximise their chances of success.

“This is where our Accelerator programmes come in. From those who have an idea, to early stage and high growth businesses and those ready to engage, collaborate and bring change to their chosen sector.

Our broad range of programmes are tailored to challenge, motivate and inspire, acting as a launchpad for entrepreneurs and – essentially right now, the necessity entrepreneurs.

“It is an opportune time to take forward new thinking and approaches.

“We must recognise opportunity and provide a platform for future decision makers to flourish. For those who have the tenacity to drive positive change and help bolster the bottom line. “Success comes when that same inwardly focussed need combines with genuine opportunity and a thirst for learning from those who have been down the track before. “There are no short cuts.” A string of Elevator’s Accelerator programmes will be kicking off in September this year, including its Flagship in Dundee and Aberdeen, Creative specific in Perth and Glasgow, energy focused Grey Matters and sustainable mobility and low carbon innovation accelerator – MSIP delivered in partnership with Michelin Scotland Innovation Parc.