SMBs Opting For Digital And Technology Driven Approaches

Small and medium-sized businesses (SMB) make the world’s 90% global companies and speak volumes when adding to the workforce. Unfortunately, due to the pandemic, the global economy has been shaken, and SMBs are suffering the maximum. Therefore, to survive this damage more than 2000 small and medium businesses moved to digital technology. However, most of the companies are still recovering from the blow.

Another noteworthy change is the transformation of the brand during the pandemic. More than 75% of Americans are switching brands that phenomenally had influenced brand loyalty. SMB manufacturing impact of covid 19 goes beyond brand – a mix of economic, climate change, health, racial injustice, absence of leadership, and spread of fake news are also the factors.

Let’s explore the significant changes that came into the picture after covid 19 hit the world.

Short- and long-term effects of a pandemic on SMBs

• SMB’s focus shifts to customer safety and sanitation that comply with the public health guidelines.
• Supply chain and innovation to match the dynamic market requirements are hugely under the impact of the pandemic.
• SMB’s are concentrating on real-time customer experience and overall relationships with the end-users.
• One of the biggest challenges is getting new customers to turn into long-term relationships.
• Another huge constraint is the lack of turnover and access to capital. There is a shortage of cash while doing business, but the pandemic made it worse.
• SMB’s manufacturing also struggled to hire the right talent and manage the suitable technology to run the business successfully. Not only this, retention and motivation of current employees also became tough.
• Digitally forward SMBs are flourishing even during low market conditions. More than 72% of SMB leaders believe business acceleration is possible through digitalization initiatives.
• Many small businesses are shifting focus to CRM (Customer Relationship Management) investments as it has proven higher business potential than other tools.
• All the future policies are dynamic, keeping any short- or long-term changes in the future. Moreover, the company leaders are more prepared for the next normal with enhanced digital platforms and technological advancements.

Some positives

The pandemic has significantly affected the revenue in small and medium businesses. More than 55% of SMB owners are struggling to stay afloat and are considering shutting the business. On the contrary, several companies are optimistic that by the end of the year, there shall be an improvement in the market conditions that include sectors like – healthcare, technology, consumer products, hospitality, travel, and retail are few to mention.

We can only hope for a meaningful change through the process of reinvention. Even though the pandemic has brought about operational and monetary challenges, businesses are striving hard to address the varied needs of their consumers, suppliers, and people. Therefore, amid the crisis, the steps towards reinventing and reopening indicate a positive outlook on the part of the small businesses that will positively impact their overall recovery strategies. Afterall, there will always be challenges and we need to stay positive and that’s what will make the difference.

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