Clark Rabbior, Head of Government Relations at Shopify, gives an eyewitness report from the COVID-19 trenches.
What is Shopify and how do you work with entrepreneurs?
Technology was meant to be the great equalizer, but, in reality, it has not been accessible to everyone. Shopify is on a path to right that wrong by creating more voices in entrepreneurship with commercial tools to start, grow, market and manage a retail business of any size. We’ve simplified what was once an incredibly complex process so that all business owners can create an impact by accessing foreign markets, making international sales, and competing on the global stage. Details like payments, taxes, shipping and fulfilment, increasing economic resiliency, are just a few of the ways we help our merchants thrive. And we will continue to make the tools that were once only accessible by the largest of companies, available to all.
How did Shopify experience the effects of the COVID-19 crisis?
By late 2019, there were over one million merchants in more than 175 countries using Shopify. We were finishing a great year as we focused on key growth areas and new markets. Like most other companies, we could have never predicted what 2020 was going to bring. Who could have imagined such disruption one year ago? The COVID-19 pandemic has affected every company, everywhere; some in good ways, but for many it has been catastrophic. So many entrepreneurs saw their livelihoods threatened as the economy started to lock down. Immediately, we realized that Shopify was going to be on the front lines with those impacted the most by the lockdown — small businesses and entrepreneurs. COVID-19 forced many businesses to move online quickly and suddenly. At Shopify, we pivoted away from our initial 2020 plans and immediately focused on creating solutions to help merchants not only survive during the pandemic, but future- proof their business to succeed in the long-term.
Has the pandemic made you think differently about policy affecting entrepreneurship?
In the immediate aftermath of the economic lockdowns, many governments gravitated to prioritizing policies and decisions that protected large corporations, who they deem to be the job creators. While these companies deserve attention and consideration, policymakers cannot forget the weight of small companies in contributing to vibrant and healthy local economies. In Canada, where Shopify is headquartered, small and medium-sized companies make up 98% of the country’s economy. It is our goal to listen to the voices of the one million entrepreneurs that use our platform to make sure these
entrepreneurs are heard, and their issues are addressed. Tomorrow’s world will be built by more voices, not fewer. And because of the pandemic, we are already living in tomorrow’s world, today. We need to ensure this new world is driven by policies that make economic success more equitable than ever before.
What challenges will policymakers face because of the COVID-19 pandemic?
We are still in the throes of the pandemic. Policymakers, like everyone, including entrepreneurs, will find it difficult to determine what — among the many changes we have witnessed in the last months — will stick, and what is just simply going to revert back to the way it was.
Collectively, and this includes policymakers, we need to become more resilient in the face of change, more adaptable, more agile and able to pivot faster in this new digital age. However, one thing we are certain of: digital has emerged as a right in today’s world. During the pandemic, we saw the world pivot to an entirely digital economy, allowing many businesses not only to survive but thrive. Policymakers need to ensure that everyone, everywhere has access to high-speed Internet. Connectivity is now a critical piece of infrastructure for every country in the world.
What do you feel the permanent effects of the pandemic will be?
Despite lockdowns, social distancing, self-isolation routines and quarantines, having this virus as a common enemy brought the world closer together.
Collaboration between distanced working colleagues was enabled and many firms embraced a new digital workforce. People everywhere reached out to friends that they had not spoken to in years. Whole families spread across the world came together virtually, using technology, sometimes for the first time. Company decision makers realized that enabling people to work from home, reduce working hours, ending their commutes, and have more time for quality lifestyles, was not necessarily detrimental to business. By the time this crisis is over — and we sincerely hope it will be soon — accelerated digitalization will have permanently changed the face and pace of cities and communities in fundamental ways.
What are your hopes for entrepreneurs of the future?
The good news is that there are opportunities for entrepreneurs in all change scenarios, and many have been grasping these opportunities throughout the pandemic. Aside from that, the lockdowns reoriented consumers to buying local again and to realizing just how critical local small businesses are to vibrant societies and healthy lifestyles. I sincerely hope that this is a trend that will continue since it massively benefits entrepreneurs and, in turn, our economy. And I hope that policymakers will listen to their stakeholders, and take into account independent, verified data such as that produced year on year by organizations like Global Entrepreneurship Monitor, before deciding the way forward, and not leaving entrepreneurs vulnerable to the law of unintended consequences. Our message to policymakers is clear: build a world that enables more voices.