Order: Peer Review
Words count: 2 peer reviews, 275 words each: 550 words in total.
You are next required to peer review one of your fellow student’s postings, as follows:
- Critically analyse the original posting; and / or
- Offer and justify an alternative view.
Use additional sources to support your review and add to your argument
Thx a lot.
This order is a continuity to the previous one (#736847). The following posts have the same subject as the order #736847.
Learning from international examples
Regarding examples from which to potentially learn from, Brexit should first be placed in its correct context to allow comparison with other similarly disruptive events. Accordingly, though Brexit simply refers to the withdrawal of the United Kingdom from the European Union (Oliver, 2018), the term belies the scale of disruption affecting organisations and their ability to maintain operations in a post-Brexit climate (Laker & Roulet, 2019).
Similarly, the health measures imposed in response to the COVID-19 pandemic and affecting access to goods and services have also challenged the ability of many companies to continue operating in an environment now defined by continuously changing restrictions (Deloitte, 2020). Therefore, when looking for an appropriate example from which to learn from, we can begin by evaluating the impact of other events on economies of comparable size and societal complexity to that of Ireland and namely, the 15-month period of disruptive seismic activity which affected New Zealand’s South Island between 2010 and 2011.
Leveraging upon longer-term opportunities
Whereas business continuity is the term given to an organisation’s ability to plan for/maintain critical functions following major disruption (Cauvin, 2018), entrepreneurship is comparable to the strategy formulation phase of corporate strategic management and specifically in that a potential operating environment is assessed to determine new venture opportunities (Dollinger, 2008).
Following the destruction of Canterbury’s built and social environment, approximately six thousand businesses found themselves having to operate from alternate locations (Potter, et al., 2015). Reflecting the loss of bricks and mortar establishments in central Christchurch, entrepreneurs and new businesses were forced to develop and exploit new networks not dependent on traditional channels and to support longer-term growth (Stevenson, et al. 2014). Accordingly, in a study of 181 respondents from those businesses displaced by the seismic activity, only 48% envisaged returning to their original premises with 29% having experienced a resultant increase in the proportion of business conducted online (Kemp, et al. 2013). Though business activity on the Island has since rebounded and assisted by entrepreneurial use of eCommerce opportunities, it also required the rapid recovery and availability of supporting supply chain infrastructure (Parker & Steenkamp, 2012).
Successful supports to SMEs during the pandemic
With turnover generated by online sales for Irish department stores increasing by 20.8% between January 2020 and 2021 (CSO, 2021) and 57.7% of their office-based staff working remotely (CSO, 2020), the parallels between the example chosen are relatively obvious. However, following the 2011 earthquake, the New Zealand government also enacted an Earthquake Support Subsidy to assist small businesses by providing temporary pay to employees, alleviating the immediate financial pressure on enterprises, and enabling them to make more measured decisions regarding their future (Fischer-Smith , 2013).
Here too and recognising that an economy chiefly consists of transactions between consumers and producers (Debreu & Scarf, 1963), among the range of what I feel were the most important financial supports made available to SMEs, the Irish government provided the Employment Wage Subsidy Scheme and COVID-19 Pandemic Unemployment Payment. Coupled with the efforts to develop alternate supply chain channels and support the free flow of essential goods by establishing the National Logistics Forum in April 2020 (National Logistics Forum, 2020), these actions mirrored those of the international example chosen and allowed economic activity to continue throughout the pandemic and in preparation for Brexit.
Awwad, A. S. (2008). ‘The role of Flexibility in Linking Operations Strategy to Marketing Strategy’, Hoboken, Wiley Subscription Services, pp. 7-30.
Cauvin, M. (2018). Why Business Continuity Management is Important for CDMOs. Available at: https://www.pharmasalmanac.com/articles/why-business-continuity-management-is-important-for-cdmos (Accessed: 12 April 2021).
COFFEY, C. et al. (2020). THE EFFECT OF THE COVID-19 PANDEMIC ON CONSUMPTION AND INDIRECT TAX IN IRELAND, Dublin: ESRI.
CSO (2020). Business impact of COVID-19 survey 27 Jul to 23 Aug 2020, Dublin: Central Statistics Office.
CSO (2021). CSO statistical release: Retail sales index January 2021, Dublin: Central Statistics Office.
Debreu, G. and Scarf, H. (1963). ‘A limit theorem on the core of an economy’, International economic review, 4(3), pp. 235-246.
Deloitte (2020). Monitor Deloitte, Impact of the COVID-19 crisis on short and medium term consumer behaviour, London: Deloitte.
Dollinger, M. J. (2008). Entrepreneurship: Strategies and resources. Lombard: Marsh Publications.
Fischer-Smith, R. (2013). ‘The Earthquake Support Subsidy for Christchurch’s small and medium enterprises: Perspectives from business owners’, Small Enterprise Research, 20(1), pp. 40-54.
Kemp, Yan Chan and Grimm (2013). ‘The experience and future of businesses displaced by earthquake from central Christchurch, New Zealand’, Australasian Journal of Disaster and Trauma Studies, 2(1), pp. 47-54.
Laker, B. and Roulet, T. (2019). Managing Uncertainty: How companies can adapt during times of political uncertainty. Available at: https://hbr.org/2019/02/how-companies-can-adapt-during-times-of-political-uncertainty (Accessed: 17 April 2021).
National Logistics Forum (2020). Nat. Logistics Forum – Terms of Reference (ToR). Dublin: Dept. of Transport, Tourism and Sport.
Oliver, T. (2018). Understanding Brexit: A concise introduction. Bristol: Policy Press.
Parker, M. and Steenkamp, D. (2012). ‘The economic impact of the Canterbury earhquakes’, Reserve Bank of New Zealand: Bulletin, 3(1), pp. 13-25.
Potter, et al. (2015). ‘An overview of the impacts of the 2010-2011 Canterbury earthquakes’, International Journal of Disaster Risk Reduction, 14(1), pp. 6-14.
QuakeCore (2016). Business Resilience and Recovery following the Canterbury Earthquakes, Christchurch: QuakeCore: The New Zealand center for earthquake resilience.
Shih, W. C. (2020). OPERATIONS, Global Supply Chains in a Post-Pandemic World. Available at: https://hbr.org/2020/09/global-supply-chains-in-a-post-pandemic-world (Accessed: 14 April 2021).
Stevenson, et al. (2014). ‘Organizational networks and recovery following the Canterbury earthquakes’, Earthquake Spectra, 30(1), pp. 555-575.
Wheelwright, S. C. & Clark, K. B. (1992). ‘Creating Project Plans to Focus Product Development’, Harvard Business Review, 70, pp. 70-82.
The Importance of entrepreneurship to the Irish Economy
The European commission estimates that 99% of all businesses in the EU are small or medium sized (Europa.eu, 2016). Covid-19 has had a devastating impact on a lot of businesses in Ireland and abroad (Cillero, 2020). For entrepreneurs this can be a time of opportunity or a time of hardship if one is not adaptable to change. One thing for sure is that “there is no going back to normal” (Simon Sinek, 2020). Sinek (2020) quotes an example of a Pizzeria in Chicago, closed because of the Pandemic, that started using their ovens to make face shields for hospitals and in doing so they adapted the business to survive.
For businesses to survive, the real opportunities lie in their ability to leverage a longer-term opportunity, not a short-term opportunistic one. One company in Peru, Estrafalario, that operates an ethical fashion brand started using recycled material to make face masks. Customers then started logging on to their website and sales have increased by 400% across their whole range (Zevallos, 2020). The business has leveraged a short-term opportunity to increase its online presence which should continue after the pandemic.
Businesses have to be creative and proactive, but government assistance is also vital. Ireland can learn from international examples that could work here and also help offset the additional challenge of Brexit. In September 2020, fifty-four members of the Global Entrepreneurial Monitor developed a framework based on what national governments were doing to secure jobs, keep liquidity in businesses and help businesses adapt (Anselmo, 2020). The principles using the acronym CRISP are as follows. Clear and concise communication of policies. Resilience and responsibility in public policy. Innovation by deploying new policies. Simplifying policies for new entrants and Preparing for a new wave of Covid-19 (Anselmo, 2020).
Using these principles in practical measures, the Czech Government introduced a scheme to assist small businesses to trial point of sale payment devices for a 12-month period, for free. They also provided a single log-on government service to entrepreneurs and reduced the frequency of new legislation being introduced on SME’s, so that new legislation could only be introduced two days per year (Vinkler, 2020).
In Ireland, in my view, the most successful supports that the government provided SMEs have been the Employment Wage Subsidy Scheme (Miranda, 2021). This scheme provides subsidy to qualifying employers based on the numbers of eligible employees on the employer’s payroll and allows the employers to pay a reduced level of PRSI, 5%. This initiative keeps people in jobs and means that the employer can survive with limited revenue until business returns to normal. Another initiative is the COVID-19 Credit Guarantee Scheme. This scheme loans provides loans from €10,000 to €1 million, for terms of up to five and a half years. This is vital for new and existing entrepreneurs because getting finance from traditional banks during a pandemic would be extremely difficult (Miranda, 2021).
Bill Gates famously said “The most important speed issue is often not technical but cultural. It’s convincing everyone that the company’s survival depends on moving as fast as possible.”(Hasan, 2017). This quote has never been more relevant than during a Pandemic. The importance of entrepreneurship in Ireland lies in fact that 99% of all employment depends on small and medium sized business leaders.
Anselmo, K., 2020. Diagnosing COVID-19 Impacts on Entrepreneurship: Exploring policy remedies for recovery [WWW Document]. GEM Global Entrepreneurship Monitor. URL https://www.gemconsortium.org/reports/covid-impact-report (accessed 4.14.21).
Cillero, M.M., 2020. COVID-19 crisis bites for Irish SMEs as nearly one-in-two firms made lockdown losses [WWW Document]. ESRI. URL https://www.esri.ie/news/covid-19-crisis-bites-for-irish-smes-as-nearly-one-in-two-firms-made-lockdown-losses (accessed 4.15.21).
Europa.eu, 2016. SME definition [WWW Document]. Internal Market, Industry, Entrepreneurship and SMEs – European Commission. URL https://ec.europa.eu/growth/smes/sme-definition_en (accessed 1.9.21).
Hasan, S., 2017. 8 Business Lessons Entrepreneurs Can Learn From Bill Gates. TaskQue. URL https://blog.taskque.com/entrepreneur-lessons-bill-gates/ (accessed 4.17.21).
Miranda, N., 2021. Government supports for COVID-19 impacted businesses [WWW Document]. URL https://enterprise.gov.ie/en/What-We-Do/Supports-for-SMEs/COVID-19-supports/ (accessed 4.17.21).
Simon Sinek, 2020. There Is No Going Back to Normal | Simon Sinek.
Vinkler, P., 2020. Why and how governments should help small businesses to ‘build back better’ – Government & civil service news. URL https://www.globalgovernmentforum.com/why-and-how-governments-should-help-small-businesses-to-build-back-better/ (accessed 4.17.21).
Zevallos, V., 2020. Social entrepreneurs: From making face shields to recycling packaging, social entrepreneurs get creative in pandemic – The Economic Times [WWW Document]. URL https://economictimes.indiatimes.com/magazines/panache/from-making-face-shields-to-recycling-packaging-social-entrepreneurs-get-creative-in-pandemic/articleshow/79301053.cms?from=mdr (accessed 4.17.21