Learning objective

In this chapter you will learn how to consider the problem of the economic crises as an opportunity – maybe you have already started to exploit them? After reading this module you will see what strategies exist to discover these opportunities in your local area arising from the changed needs in the market. You will learn what resources could be assessed and possibly reorganized. Finally, you will learn how the new answers (including different forms of innovation) could be born for the changed needs. You will understand how innovation in the local area could be based on the resources measured in your SME or organization.
It will take approx 30 minutes to read this module and 40-60 minutes to discuss it with a group of people.

Introduction

All periods of time induces new possibilities on the market for those who are willing to take notice of them. How we think about these situations describes often the outcome as well. If we are able to see the changes as an opportunity, it will be possible to exploit them. If we see those as a tragedy or what is worse, a punishment on us, it will cause us suffer till a raggedly survival – this would be the target. However, it is important to remember: the negative effects of the economic crisis are not valid for every for-profit organisation.

What an enterprise realises during a time of recession depends on the way it perceives the situation and the effort it makes to realize the most out of them. Among these upcoming opportunities innovation is the best to exploit.

Although economic crises peeked in 2009, we should notice that in every company and economic environment smaller or bigger recessions are following each other in a period of time. It is better to be prepared, and thus be able to manage during harsh times as well - or what is more, turn it to our own advantage.

There has been an economic crisis from 2007 till 2010 with a long-lasting effect due to the liquidity shortfall in the United States banking system. These problems of liquidity were caused by the overvaluation of assets1. There have been effects that twisted into the European markets rapidly as well. On a global scale it contributed to the bankruptcy of businesses, declines in consumer wealth and a remarkable fall in economic activity2. Even in the period of 2010–2011, economists expect significant risks effecting global economy3.

As you can experience, despite of the tendencies some enterprises not only managed to survive, but to multiply their profit, attract new customers and develop new products or services. Some enterprises do grow by creating new value. You could ask: Why would it be important at all to set up something new during a period of crisis?


1 Financial Crises of 2007-2010 , Wikipedia
2 Brookings-Financial Crisis (PDF)
3 "Roubini-10 Risks to Global Growth". Forbes

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EN_1_3.pdf

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