Managing SMEs in Times of Pandemic

Measures taken at the global level to contain the COVID-19 pandemic have obvious effects on economic activity. Thousands of companies around the world have shut down or significantly reduced their operations, while others have managed to adapt, at least temporarily. The hardest hit sectors include notably tourist services, whose consumption format implies a face-to-face experience.

In addition, the characteristic vulnerabilities of SMEs are exacerbated in a context where market access is restricted. We believe, however, that it is possible to increase the chances of recovery insofar as employers and managers make appropriate decisions. Below we present some lines of action that can help SMEs survive and recover from the pandemic.

A Strategic Emergency Management Body

A tool that has proved useful for many organizations is the establishment of an emergency committee to expedite decision-making at this juncture, identify opportunities and take action to leverage them, regarding both market access issues and in the adaptation of processes, products and services.

This mechanism should act in an agile manner, but always seeking to strike a balance when analyzing scenarios and identifying their respective risks. In line with these adjustments, new budgets and financial estimates should be outlined.

In addition, the committee should identify support programs that arise in the form of tax flexibility, financing conditions, payroll subsidies, among other facilities. SMEs need to be informed in order to ensure timely access and protect their sustainability.

This committee should also review contractual commitments made with customers and suppliers in order to compromise on flexibility as necessary. This will ensure adequate supply at the different links of the chain.

Accelerated digital transformation

How to facilitate remote work? Which online tools can I develop to maintain my link to the market? Is it possible to adapt products and services to a digital format? Can I offer complementary online products or services? These are some questions that every SME should be asking itself. In addition, steps must be taken rapidly to implement the relevant changes.

One useful action is to establish partnerships with existing commerce platforms, for example, for home delivery. SMEs can also identify a productivity and telecommuting platform (available in the form of a digital application), to ensure continuity of operations, as well as fluidity of information both internally and externally. The importance of safeguarding information security should be taken into account.

In the medium term, SMEs have the opportunity to double their digitization efforts, and capitalize on the experience to develop an increasingly robust digital business model.

People Management

Preserving people’s safety and health is the main interest of all organizations. They must make every effort to ensure activities are carried out with the most strict safety measures. When face-to-face contacts are unavoidable, hygiene conditions must be ensured, as well as adequate and timely supplies to prevent contagion.

Mental and emotional well-being is also critical. One strategy to achieve this is to provide timely information on decisions taken, recommendations from specialized agencies, and guidance for the proper management of new processes. We recommend that all communications must be presented in a standardized format that conveys order and structure.

Similarly, the adoption of remote work with sufficient flexibility becomes relevant, given the multiple family dynamics that workers may be experiencing, as well as continuous monitoring of the health conditions of employees and their families, handling the information responsibly and confidentially.

In some cases, companies have chosen to offer workers vacation time, in order to minimize the impact on the financial stability of the business. In addition, available time can be used for skill development through online training programs. Many online training programs are freely accessible.

Responsibility and Resilience

Actions performed during this period will impact brand value and positioning of the company. It is important to develop and publicize responsible management to all your audiences.

If cash flow permits, another recommendation is to allocate funds to initiatives to support the most vulnerable communities amid the pandemic. However, proper human management is also part of corporate responsibility and does not require additional resources.

Learning from this experience will become the main contribution to the company’s legacy. Companies that are able to adapt, improve processes and reinforce knowledge, in addition to achieving the commitment of their employees and market recognition, will succeed in resuming their growth curve at the fastest pace, thus beating the pandemic.