June 27th 2020 marked the fourth Micro-, Small and Medium-sized Enterprise (MSME) day, established by the International Council for Small Businesses (ICSB).
Along with online events, the ICSB published its annual report highlighting not only the importance of MSMEs as they relate to the United Nations Sustainable Development Goals but also calling for further political and regulatory support for the sector as the global economy looks to make a recovery.
Concept of a green economy
Ahmed Osman, President of the ICSB, used the annual report to share his perspectives on the future for MSMEs in the post pandemic world and posed the question ‘What is the new normal for MSMEs?’
‘There are six key factors every MSME or start-up needs to keep in mind post Covid-19,’ Osman stated, the first of these being financial assessment and security. Encouraging MSMEs to put in place a financial action plan, obtaining information about government relief packages and getting a clear picture of investor expectations, Osman said; ‘Once this financial risk assessment and support ecosystem are in place, one can execute the plan. This may involve deciding on a potential pay cut, pull back on investments related to infrastructure or expansion, halting new recruitment etc…’
Digital Business and Technology Concept
Having secured the financial footing the next factor was to re-evaluate the business plan in light of the new conditions. Osman stressed the importance of involving all stakeholders to come up with a mutually agreed set of new targets. The third factor to consider, according to Osman, was creating a ‘strong digital ecosystem.’ ‘If there is one thing that Covid-19 has taught businesses. It is the power of digital engagement. Even as an MSME, it helps to be present and active on digital media…Additionally, a digitally enabled internal ecosystem also needs to be in place that can accommodate remote working…without compromising data security or productivity of employees.’
The fourth factor Osman highlighted was adoption of the fourth revolution for business. ‘…This is also time to leverage the new age technology innovations and adopt the fourth revolution for business. While most SMEs and MSMEs look at this as an ‘out of league’ investment, it is actually very simple and can be incorporated for a higher ROI in the long run. Be it automation, CRM, ERP, IoT, a well planned strategy to scale to technology-enabled, highly productive next generation business can be worked out with a two to three year plan,’ Osman said.
Bulb future technology
Less reliance on physical space was the fifth factor Osman highlighted, anticipating a reversal in the trend that led to increasing the number of people in an office and home working becoming more normal.
The final factor Osman highlighted was the need to have a crisis management strategy in place. ‘It is vital to chalk up an effective crisis management plan that will take into consideration both immediate and long-term impact,’ he said.
Encouraging MSMEs to take stock, Osman asked ‘How did you help in the great pandemic? Quantify what you did for your employees, customers, community and country. Leverage the opportunity to build a better business, have credible solutions to the new major challenge and think globally act locally.’