Startups in Times of Crisis – A Rapid Response to the COVID-19 Pandemic

The ensuing pandemic of coronavirus greatly influenced all social and economic sectors globally. The precautionary measures to cease the spread of disease, such as lockdown, exert immense pressure on major sections of a country’s economy. It is termed a "black swan event," which is an unpredictable incident with unimaginable severe consequences. The health sector was most affected by this period of crisis. Policies were formulated for larger firms to cope with a sudden crisis, but innovative startups and small-sized businesses were neglected during the pandemic. Startups draught the future of any nation, but were overlooked at the time of crisis, when larger companies were governed to secure the present economic situation. Small startups are also considered ineligible for loans and investments, which exerts even more stress on them. A rapid response study was conducted to determine the crisis and its influence on startups. This will answer questions about the types of distress confronted by startups during lockdown, what approaches they employ for crisis management and the specific policies for the preservation of startups.