As the pandemic continues, it is increasingly demonstrating how critical “creativity” is to driving growth and innovation in capitalist based economies. The effects of no creativity on the global economy can be readily seen with the global lockdowns that we are all experiencing.
The current state of the global economy, for all intents and purposes, is what could be described as in a stagnant holding pattern. With a significant number of small businesses shut down and the only other businesses allowed to remain in operation are those classified as “essential”, the devastating impact to growth is readily apparent.
Millions of people around the globe have either been laid off or furloughed and several thousand businesses are teetering on the brink of closure or bankruptcy with continuing expenses and no revenue in sight. While the direct impacts are shocking, it is the indirect impacts that will have devastating long term effects that everyone needs to be concerned about.
From a business perspective, the impacts of the pandemic have been felt across the board. From big name businesses such as Hertz and J Crew who have filed for bankruptcy to local small businesses, no one has been immune to devastating impacts of the pandemic. However, the hardest hit businesses during this pandemic are those that are either directly or indirectly tied to the service industry where creativity is key.
There are many unknowns concerning how businesses and individuals will be able to recover post-pandemic but one thing has been clarified concerning the economy and it is the need for creativity to drive growth. Yes, there can be some nominal economic growth through the production of “bread and butter” goods and services but, fundamentally, if human civilization is to achieve the hyper-growth rates required to sustain the global economy, it needs service industries, particularly those requiring creativity, to thrive more than ever.
From an anecdotal perspective, one only has to look at one’s purchasing habits to see how important not only creativity is but emotion as well. While retailers have been in dire straits prior to the pandemic, the rapid descent that has occurred with retailers is directly correlated to the significant percentage of retail purchases that are driven by emotion.
Pre-pandemic, one would walk into a retailer with a defined purpose. It might be to buy one pair of pants. Fortunately for the retailer, that one pair of pants could eventually include a pair of shoes, a new shirt and a pair of socks thanks to some clever retail space staging and marketing. Not only would the individual be better dressed at the end of the single purpose shopping trip but the retailer is better off thanks to increased revenues. Unfortunately, during this pandemic, retailers no longer have the luxury of additional retail purchases.
With most businesses now having to restrict the number of shoppers inside a retail store or solely reliant on curbside pickup and e-commerce, the opportunities to emotionally entice shoppers are extremely limited. One could argue that most shoppers are also wary of making additional purchases thanks to the horrendous state of the global economy but some weight must also be placed on the fact that retailers are unable to get shoppers to make those emotional purchases as well.
In many respects, just like the “emotional” element of retailing, the global economy requires “creativity” to thrive. While many would state that the global economy is adapting to the pandemic era thanks to technology, the reality is that today’s technology cannot replace all the conditions for creativity to thrive nor the serendipity that is sometimes required.
While many would argue that most advancements are made through careful planning and execution, the reality is far different. Serendipity plays a huge role in what and who succeeds whether we believe it or not.
How many times have startup founders told stories about randomly meeting their next investor at some random party or while being stuck waiting in line? How many times have individuals struck upon their next great idea or concept as they wander the streets of their vacation destination?
For all the benefits of careful planning, the reality is that the new ideas that drive economic growth are primarily driven by serendipity. It is serendipity that helps individuals think of the next great idea or concept that could be worth billions of dollars and employ hundreds of people. Unfortunately, governments around the globe are not only failing to stabilize the socio-economic infrastructure while the pandemic continues but they are failing to plan to build the new socio-economic infrastructure required to grow the creative economy.
While businesses of all sizes are getting hammered during this pandemic, small businesses are getting hit disproportionately. Small businesses don’t have the necessary resources and reserves to sustain themselves over the duration of this multi-month global pandemic. As a result, many small businesses have had to shut down and throw dozens if not hundreds of employees out of work.
How does the plight of small businesses tie into the creative economy? Small businesses represent the grander ambitions of creatives. For many creative entrepreneurs and idealists, a small business entity is the first thrilling stepping stone for either ensuring their concepts and ideas can go globally or, from a smaller scale, are enjoyed by a community that appreciates the concept and the work.
With so many small businesses dying due to lack of government support, the dreams and ideals of millions of creatives are being snuffed out. It is not only those small business owners and their employees who are being directly impacted but those creatives whose ideas and concepts are only now forming.
If the creative economy is the driving force behind the needed hyper-growth required by society, what can be done now as humanity continues to deal with the pandemic? Unfortunately, there are no simple solutions.
At a bare minimum, there needs to be more consistent financial support for small businesses and their employees. While many countries have implemented short-term financial relief programs for small businesses and the unemployed, they do not address the fundamental systemic issues that lead small businesses to have reduced resources and reserves when unexpected situations arise.
While there are some politicians who would state that it is not the job of government to prop up failing businesses, they are merely ignoring the holistic consequences of not doing so. Supporting small businesses or what could be described as the “first level” of creative outreach beyond one’s individual self is increasingly needed to ensure the growth of the creative economy. Without that support, the over-reliance on the “essential” economy will drive the global economy towards a “lost decade”. As such, human civilization must make the necessary changes to ensure that instead of walking towards a “lost decade” we walk towards a “golden decade”.
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