Invoice Bazaar Blog

How are SMEs recovering from the COVID-19 pandemic and emerging stronger?

By Invoice Bazaar | August 4, 2021

The latest economic and industrial news emanating from the markets indicate that while a small number of SMEs have failed and pulled down their shutters, a majority of them across the world have survived and are clawing back and recovering steadily from the adverse impact of the Covid-19 pandemic. While some of these SMEs have significantly improved their product development capabilities and service orientation after the onset of the pandemic, others have creatively introduced significant shifts and changes in their business models and operating models, because of which they are expected to bounce back in the coming months.

For instance, a study conducted recently by Paragon Bank and reported by Business Money says that 54% of the SMEs in the United Kingdom have already bounced back from the pandemic and reached or exceeded pre-pandemic turnover levels. Meanwhile, more than 90% of the SMEs are pretty optimistic about their future prospects. If this trend persists, the majority of the SMEs across the world, including start-ups, will recover the lost ground faster than expected, and they will emerge much more robust in the post-pandemic era. Though a large section of the SMEs is quite optimistic about their post-Covid future, a few SME owners admit that they will need continued government support to make a full recovery.  

In the meantime, let us analyze how the majority of the SMEs managed to survive or bounce back by adopting various creative strategies and how they now plan to use the innovations developed during the pandemic to drive revenue growth and generate new opportunities. The small business owners organized the creative strategies and innovations they adopted around seven areas, such as providing remote access to everything, empowering a remote workforce, and engaging customers virtually. Meanwhile, they accelerated agility and efficiency while protecting their business ventures against new cybersecurity risks. Simultaneously, they also reduced operational costs and enhanced supply chain continuity while extending full support to health providers and government services.