Taming the Black Swan
Taming the Black Swan
BY: HEATHER BARNHOUSE, DENTONS
Entrepreneurs are tested on a daily basis in their endeavours. Many of the tests are anticipated or expected, even if the exact timing of when the test will occur is unknown.
For example, entrepreneurs understand that they will be tested as they grow and scale their businesses in the form of raising capital; board-management relationships; regulatory demands and appropriate responses; finding the right team members; relationships with co-founders; sustainable business practices; innovation; having to let staff go, downsizing, rightsizing etc. One of the defining qualities of entrepreneurs is their resilience, and their creativity in how they address these expected challenges.
Aside from the challenges that we expect, there are black swan events from time to time, where circumstances and conditions arise that couldn’t be predicted or anticipated, and challenges society in unexpected ways. The ongoing Covid-19 pandemic is such an event. Often, black swan events affect a particular industry disproportionately, such as the Eyjafjallajokull volcanic eruption in Iceland in 2010, and the effect on air travel in Europe as a result. While not all industries were equally affected by the unexpected event, many (airline industry, tourism etc.) were. What’s interesting about the Covid-19 pandemic is the universality of its effects. While not all industries or individuals were affected equally, everyone was affected in some way. That creates a platform for shared empathy, and the conditions for sharing amongst diverse groups.
Layering a black swan event on top of the daily anticipated struggles of entrepreneurs generally has created a perfect storm of stress, chaos and challenge for many in our community. One of the things that have always inspired me about entrepreneurs is their willingness to share, and to help another entrepreneur in need, even if they are unsure how to help. The ideas and concepts that help solve a problem in one industry are surprisingly transferable to entrepreneurs who are good at creative problem solving in other industries. Resilience is built, and then strengthened where new ideas are tried and tested and lessons are learned that help influence the next generation of ideas and leaders.
At Dentons, we have experienced first-hand the resilience of entrepreneurs and their generosity throughout the global black swan event over the past 18 months. Over and over again, we have seen businesses and their leaders tried and tested in ways that were both expected and completely unexpected. Further, due to changing restrictions, changing Covid relief programs, changing legislation, and changing best practices, we have seen the same businesses needing to pivot repeatedly, and continue to adapt just as they thought they had a handle on the situation. While there have been many ups and downs, the overall trend we’ve noticed is a renewed and continuing willingness to stay in the game.
Covid fatigue is real in many people’s personal lives, and the tests have been undeniably difficult. But, even when an entrepreneur may have lost the business, there is still a kernel of hope. Entrepreneurs, being eternally optimistic by nature, rise again and carry on. And in doing so, they create a legacy of shared wisdom, resilience, and optimism.
In the current environment,, many have suffered personally and professionally. However, many have also been blessed by unforeseen opportunities to connect and create, looking forward to reunions, new beginnings and renewals. As trusted advisors to many businesses and leaders, this is one of the most hopeful seasons we have seen. We do not know when these opportunities may be realized, but we know the willingness of the community to make it happen. That’s why we continue to be proud supporters of communities such as VMS, and value the community contributions of so many entrepreneurs willing to forge ahead, despite unprecedented hardship and challenge, with the Mentors walking happily by their side.
