Global Downsizing: Correction & Gain

Economic downturn got you down? Think there’s no upside? Look further for the hidden benefits.

If there’s one lesson that investment bankers have learned from the economic crisis, it’s that nothing lasts forever. Sure, when things are good, they are really good, but when things go bad, knowing how to operate a parachute is a really good skill to have.

Just two months ago, I was at an event where I met an old friend who happened to be a mid-level manager at a leading investment bank here in Bahrain. As soon as we started talking, the conversation turned to the state of the market today and our current jobs. “I decided to quit my job and start a business,” he said. I cannot say this surprised me. He mentioned that his bank was downsizing, and since he was a placement officer, his job was in jeopardy. He decided to bite the bullet instead of having it shot at him at any moment by management.

“Why not pursue something that I’ve always wanted to do? What have I got to lose?”

Bear in mind that he is a father of two, and had recently purchased a house in one of the Kingdom’s gated communities, so it’s not like he didn’t need the income of a high-paying investment job.

“This is how I saw it,” he said. “I was either going to quit or be fired by my boss. All the signs were there. Thankfully, I was one of the few people who had decided to save some money for a rainy day. Now is as good a time as ever. Why not pursue something that I’ve always wanted to do? What have I got to lose? There are now several schemes, such as those designed by the Bahrain Development Bank and the UNIDO Investment and Technology Promotion Office, to help people who want to start businesses here in the Kingdom. Most of us were initially drawn to an investment banking job because of the steady, high pay and lucrative bonuses, so we never really paid attention to schemes like these. I only wish I had thought of it earlier. Many of us followed this path, but most decided to splurge on exotic cars, properties, and the like. I was sometimes made fun of by my friends for not partaking in the ‘excessive’ way of life to the same degree they did. But now, with our backs against the wall, our only option is to downsize our own lifestyle.”

All of us know someone who has a tale similar to this one. Every cloud has a silver lining, though, and so does this story.

If anything, the economic crisis that started in 2007 (a little later for us in the GCC) and continues to disrupt our lives in various ways has forced everyone to think outside the box and live within their means.

This new thought process, forced upon us due to hard times, has served as a much needed wake-up call. People are now thinking of the future and how to squeeze every penny for the maximum possible benefit.

“If anything, the economic crisis that started in 2007 has forced everyone to think outside the box and live within their means.”

Without the clutter of the usual materialistic wants like cars, jewelry, etc., we, as a people, have matured after having some sense knocked into us. We have started to ask ourselves some tough questions before making financial commitments. Things like our children’s education, saving up for the future, and pursuing our passions, whether through art, business, or anything else, have taken top priority instead of the mindless excess we so vigorously pursued just a few years ago. And that, at least to this writer, is a good thing—a very good thing. Welcome to reality. It’s not as bad as you think.

Bahrain-based digital platform and publication for startups in the Middle East. Exclusive events, in-depth workshops, insightful content, and informative news. In strategic partnership with Tamkeen Bahrain, Zain Bahrain, National Bank of Bahrain, Zoho, Tenmou, and StartUp Bahrain.

Startup MGZN © 2020. All Rights Reserved.