Lessons from Old Growth Forests and New Growth Forests: Navigating Business Resilience

This is a growth analogy. Tune in.

The dramatic narrative of WeWork, once valued at an impressive $47 billion and now nearing bankruptcy, brings to my mind a fascinating analogy. It reminds me of the contrast between Old Growth Forests and New Growth Forests.

Old Growth Forests are trees which have matured over centuries without significant human interference.

The dense rings within these trees serve as evidence of their fight for limited resources, symbolizing resilience.

In contrast, New Growth Forests, essentially tree farms, have been nurtured with ample resources. Despite their outward strength, these trees bear less dense rings, hinting at an inherent fragility.

Now as the business climate transitions towards high-interest rates and scarce funding, we can see the rise of 'old growth' businesses. Drawing strength from adversity, these enterprises grow steadily, much like Old Growth Trees.

Meanwhile, 'new growth' businesses, which previously thrived in a resource-rich environment, may grapple with new challenges in the current economic climate.

This shift, while demanding, could lead to a robust business ecosystem overall.

Ultimately, it comes down to founders recognizing and adapting to shifting dynamics. As the environment evolves, businesses need to pivot, adopting more 'old-growth' characteristics to ensure a balanced approach to sustained success.

At Asia SGE, our aim is to assist founders to build a sustainable business which enriches all stakeholders. By understanding and implementing more 'old growth' strategies we can build resilient start-ups and ecosystems which are able to adapt as the climate evolves.

Let's explore this further – are there any changes you have made to adapt to the evolving business landscape?