You’re on your own.
A sobering realisation of maturity, independence and private enterprise is that, of varying degrees in western societies (Australia included) one has not and could not expect to be reliant on the support, often financial, on others, government included.
Capitalism is founded on the principle that market forces prevail. As a result, there are winners and losers.
Those tenets changed with the on-set of the coronavirus, COVID-19, and the declaration of a pandemic. Government decisions, legislation and regulations impacted commerce, society, lifestyles, families and individuals. Businesses were rendered unviable. Many were literally and figuratively closed down.
Compensatory payments and support were extended to businesses, employees, communities and sectors.
Such largesse softened, but did not avoid, the consequences. National recessions were registered, unemployment rates soared, international travel was all but eliminated and personal, social habits changed – possibly forever. More money and increased deficits will not, in isolation, achieve a growth economy.
Social distancing, hand sanitising, social isolation and working from home became the norm, and accepted as the expected.
DISTURBING
Increasingly, the public expressions of business leaders have reflected significant changes in attitudes about, tolerance of and desirability for SOCIALISM.
In Australia, venture capitalists have stated that the market-worth and sustainability of a large, full-service and wide ranging private airline will be dependent on some degree by continued payments of employee wages support by the Federal Government. Is that contradiction writ large?
The creeping hand of socialism implies a widening acceptance of dependence on the public purse. Risk tolerance is in play.
These values are philosophically different and distinct from social conscience.
Free enterprise and independence will be compromised.
ACTION REQUIRED
Recovery from the Federal Government-induced recession will be long. Increases in taxes receipts will be needed and inevitable.
New, more dynamic and malleable business models will be required. Supply chains will be refined, product (service/application and sources) will be increased, as will payment, communications and home delivery systems.
Partnerships and collaborations will be established, to mutual benefit.
Doubtless, considerations will be given to involvement in “public-private partnerships”. The recent track-record of such in infrastructure developments has been less than laudable – and short of being financially rewarding.
ROCKY ROAD AHEAD
Overall, the path to the future is strewn with boulders, a few pot-holes, and a number of twists and turns.
The need exists for attention, hands-on-the-wheel, and measured acceleration. Being a ‘four-on-the-floor’ entrepreneur was for another time, economy and marketplace.
A one-pace or two-paced economy is unlikely in the immediate and intermediate future. Forecasts and long-term navigation will have questionable veracity and accuracy. Those seem simplistic.
Rapid-response opportunism will be rewarded, certainly in the shorter-term. That proposition alone marginalises the probable positive role for government intervention, participation and support. “Creeping socialism” is, seemingly an apt term of phrase.
The scope for such collaborations will be extremely limited for an overwhelming majority of small to medium enterprises. Scale alone will bias the focus and participation of government to larger entities.
REVENUE-GENERATING ADVERTISING
Public sector-funded mass media advertising campaigns seldom generate and sustain widespread increases in revenue and visitations.
Well-intentional campaigns imploring and promoting the virtues to “buy, visit and support local” are laudable, but marginally effective.
Initial responses to such missives are positive. However, in the longer-term and final analysis consumers are driven by self-interest.
FORCED CHOICE
Aspirants and advocates value choice and control.
Creeping socialism, no matter its scale or nature, impinges upon those attributes.
Pursuits of agility and mobility are compromised by the presence, influence and processes innate to bureaucracy.
The stark choices confronting commerce at present are not binary. Free-wheeling, unencumbered laissez-faire enterprise is, at present, rare. So too, is over-powering ubiquitous socialism.
Locating an optimum-point on a scale between the two extremes is somewhat arbitrary. However, it is necessary.
Tolerance, understanding and compromise will be important.
SOBERING REALISATIONS
So, as in life, failure is often an orphan. Success tends to enjoy extensive maternal and paternal relationships.
Going forward, it is advisable that business owners, leaders and managers accept the challenge that in pursuit and attainment of success, they accept that to a great degree, “they are on their own”. But not alone, exposed and vulnerable.
Barry Urquhart
Business Strategist
Marketing Focus
M: 041 983 5555
E: Urquhart@marketingfocus.net.au