50% of Iranian start-ups go bust under Covid-19
The ICT Guild Organization report reveals that only 12% of technology companies have benefited from business opportunities. The lockdown resulted in an increase in demand, but the country's infrastructure network was inadequate. 38% of the companies have ceased all activities, 40% have operated at half regime.
Tehran (AsiaNews / Agencies) - Due to the new coronavirus pandemic and its devastating impact on the national and world economy, about 50% of Iranian start-ups are doomed to failure, according to a report drawn up by the ICT Guild Organization.
It states that only 12% of technology companies have benefited from the business opportunities following the global health emergency and from the closures imposed to contain it. The picture appears bleak and confirms a significant rise in unemployment in the sector.
The study shows that, since the reintroduction of US sanctions in May 2018, the Iranian economy based on oil revenues has suffered a severe backlash. However, the tech sector and startups continued to grow and expand, bucking the trend of the rest of the nation. That was until the arrival of Covid-19, which dealt the final blow to the Islamic Republic’s economy and also destroyed information and communication technologies (ICT).
According to the report, demand for online services increased significantly in the months of the lockdown, as the population relied on online platforms for a variety of services, from education to shopping. However, the country's infrastructure network was by no means prepared for the sudden increase in demand for services.
The data provided by the Iranian Center for Training and Statistics (Srtc) confirm what was anticipated by the ICT Guild Organization, showing the impact of Covid-19 on the technological innovation sector. In recent months, 38% of Iranian i-tech companies have ceased all activities; on the other hand, only about 22% were able to continue at full capacity; the remaining 40% operated at half of full capacity in the pre-virus period.
The sales sector is the most affected, with a collapse of 49.6%. Monetary liquidity, human resources and the production index fell by 15.3%, 13.2% and 10.5%.
The difficulties in the technological sector do not only concern the Islamic Republic, but involve all the major economies in the world, albeit in different ways. According to the report by the International Data Corporation, the impact of Covid-19 will differ by sector with some favourable indices for collaborative applications, artificial intelligence and devices. The fact remains that the market will not return to pre-coronavirus levels before 2023.
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03/03/2021 09:35
