Article by: Sonia Morffi
If the ravages of COVID-19 have taught us anything, it is that the global economy is a large ecosystem where restrictive measures affected everyone equally. Regardless of whether they were large, medium or small companies, losses and uncertainty became part of everyday life.
Even so, one thing that is also undeniable is that the crisis response capacity of a well-established company will never be the same as that of a small one. That is why those companies that were just starting out had to deal with dark times. Many of them did not make it, others had to reduce their production and have had to struggle to sustain themselves up to the present day.
According to information provided by The International Trade Centre (ITC), 62% of small businesses that were run by women were more severely affected than those run by men. It was also revealed that women-owned businesses had a 27% greater chance of failing to survive the crisis.
The numbers keep indicating that small businesses led by women, young people, ethnic minorities and migrants are in a particularly vulnerable situation. But, for the adversity of these times there are more and more solutions that every entrepreneur needs to know.
Why is the survival of small businesses a struggle for everyone?
The world is focused on getting back to normal after the radical changes caused by the pandemic. Governments are vaccinating their respective populations, and are increasingly trying to boost economic production.
However, we must consider that the global landscape also has to cope with accelerated economic growth, and a climate crisis that is only getting closer.
There are many problems to face at the same time. So, you may wonder how small businesses can help, and why their drive is everyone’s problem? Here are some revealing facts from the United Nations (UN):
- MSMEs, both formal and informal, account for 90% of all businesses today. In other words, they are the source of employment for 70% of the population.
- 600 million jobs will be needed to absorb the workforce by 2030. The workforce is growing steadily, and SMEs are central to this scheme.
- SMEs create 7 out of 10 formal jobs in emerging markets.
How can small businesses be able to reactivate themselves?
Reactivating small businesses to their full capacity will not be an easy task. Nevertheless, it is a goal that must be set and supported in order to be achieved.
Considering the contribution that SMEs can make to local economies, and their importance in diversifying thousands of sectors, there is no time to lose. That is why these are some tips to try to reactivate them:
Resorting to reactivation programs for various entities
Everyone is talking about revival and how it is so necessary to move forward in the midst of the pandemic. So, governments are slowly launching programs and aid as part of their recovery efforts.
Several banking institutions have also done so, with loans at lower interest rates than usual. Special lines of credit and digital channels to obtain them have been responses to consider. Likewise, many non-profit organizations have tried to provide their communities with this kind of financial assistance.
Learn about available resources with the right guide
The options may be out there, but if you don’t know about them, it is impossible to take advantage of them, this is how social organizations have stepped in favor of facilitating resources and educating about the available alternatives.
For example, CANADEM USA as a social organization that cooperates between the United States and Mexico is focused on generating projects for business growth, productivity and promote self-management of small to large companies.
In the same way CANADEM USA is made up of members from diverse communities, which provide a rich perspective on the particular needs of each of them. By providing self-management tools and strategies, you will find answers to many questions that can be answered with the right guidance.
Benefiting from the advantages of digital platforms
The reinvention of digital platforms should be mentioned as a key element due to its relevance. From electronic payments, through home services, to customer service by these means, it has marked and separated the companies that have managed to survive from those that have not.
In fact, if you look around you will notice that those companies based on e-commerce were able to safely adapt to the measures imposed by the pandemic. So those businesses that refuse to incorporate digital resources, or that do not yet know or use all that are available, need to act now.
Even those businesses that believe they are aware of the advantages of digital platforms need to constantly update themselves. Implementing new technologies is not a one-step process; on the contrary, it requires one step after another. The world never stands still and small businesses need to keep this in mind on a daily basis.