“Commit to the Lord whatever you do, and he will establish your plans.” – Proverbs 16:3
I have often found that health care provides rich metaphors and strategies for seeking solutions to business problems. The medical journey – from the initial doctor/patient consultations and tests to diagnosis, treatment, and recovery – parallels the steps we can take to nurture and heal businesses.
Despite the passage of time, the survival rate for new startups remains alarmingly low, with 90 percent failing within the first five years. This statistic, consistent over 30 years, poses a significant barrier to economic growth, employment, and wealth creation. It deprives communities of the chance to cultivate an environment where people can coexist harmoniously.
The concept of healing businesses goes beyond survival. It aims to create a win-win environment for all stakeholders – employees, customers, communities, the environment, and shareholders – to ensure businesses’ survival.
Years ago, I noted a significant decrease in human mortality rates – from 30 percent in the first five years to four percent today – thanks to the advancements in public health care systems.
Reflecting on the dramatic improvement in human survival rates over the years, thanks to public health care advancements, prompts an intriguing question: How can we apply these lessons to improve startup survival rates?
Success in public health care primarily comes from an emphasis on prevention, early intervention, and holistic treatment. These principles offer a blueprint for a business health care system designed to nurture startups through their critical infancy stage.
Here’s how:
1. Preventative Care: Just as regular health check-ups can detect and prevent health issues, startups could benefit from proactive support to identify and mitigate potential challenges before they escalate. Access to innovative ideas, mentorship and financial resources is crucial for navigating obstacles and fostering resilience.
2. Early Intervention: In health care, prompt diagnosis and intervention can save lives. Similarly, identifying struggling startups early and providing specific support – tailored coaching, financial assistance, or networking opportunities – can steer them back on the path to success.
3. Holistic Treatment: Health care encompasses physical, mental and emotional well-being, and a similar holistic approach should apply to business care. This means examining financials as well as organizational culture, leadership development, and stakeholder engagement to ensure a startup’s sustainable growth.
By adopting these health care principles to entrepreneurship, we can cultivate an ecosystem that nurtures startups, aligns with sustainable development goals, and paves the way for a resilient and prosperous future in SIDS and beyond.
Let us harness the lessons learned from health care to heal and empower our businesses, creating a robust foundation for lasting success.
(Dr. Basil Springer GCM is a corporate governance adviser. His email address is basilgf@marketplaceexcellence.com. His columns may be found at https://www.nothingbeatsbusiness.com).