As the threat of a recession looms, many tech companies around the world are cutting back on expenses. According to McKinsey, 81% of leaders expect a recession. Even large companies like Meta, Google, and Amazon have been in the news recently for laying off employees due to uncertainty.

In addition, boutique banks that have traditionally focused on tech startups are also feeling the pinch. Silicon Valley Bank, which has lent over $212 billion to tech companies, recently collapsed, followed by Signature Bank shortly thereafter. This “banking contagion” has caused panic, with experts warning that this is just the beginning.

Here are 5 tips to keep calm in an economic storm

1. Continue to invest in research and development

In today’s competitive business landscape, investing in research and development is crucial for sustaining innovation in products and services. This investment can lead to new revenue streams and help maintain a competitive edge, particularly during challenging times. Rather than slowing down during disruptions, companies should use this time to accelerate their progress and outpace their competitors with confidence and optimism.

Research has shown that businesses that maintained or increased their investments in innovation during a recession experienced up to three times more growth compared to industry peers for a period of up to five years after the recession. This enabled them to leapfrog over their competitors in many cases.

2. Target responsible growth to thrive

Achieving responsible growth requires striking a balance between economic profitability and social and environmental responsibility. To ensure long-term sustainability, companies should prioritize investing in employee training and development, establishing strong partnerships, and maintaining a focus on sustainability. This approach can enable businesses not only to survive a recession but to emerge stronger from it.