World Economic Forum: Expansion and Survival Are Top Challenges for SMEs

The World Economic Forum (WEF) stated that expansion and survival are recognized as the main challenges for small and medium enterprises (SMEs).

In a report written by WEF and the National University of Singapore called “Future Readiness of SMEs and Mid-Sized Companies: A Year On,” it was discovered that 67% of SMEs executives have noted expansion and survival as top challenges they are currently facing in light of a looming global recession.

The study was conducted following a survey with over 800 respondents which were executives and leaders in SMEs hailing from mid-sized companies located in major regions and different industries in the world, namely public service, commerce, construction, agriculture, education, professional services, and finance.

The WEF mentions that aside from expansion and survival, respondents identified retention and talent acquisition as part of their main concerns.

Challenges also cited were the difficulty and importance of sustaining strong culture and clear company value and purpose at 34%, innovation and technology at 25%, funding and access to capital at 24%, and policy environment at 22%.

Aside from this, the WEF stated how these SMEs drive innovation, growth, and sustainability in local, regional, and global economies. Mid-sized and SMEs make up an estimated 90% of all firms worldwide, with 70% of employment, and around 70% of global gross domestic product.

“Given their collective weight, as well as their tremendous potential, ensuring SMEs and mid-sized companies are thriving and future-ready is fundamental,” mentioned WEF.

“SMEs and mid-sized companies have a significant opportunity to increase their levels of future readiness by focusing on increasing their resilience capabilities while making the most of their existing high agility,”

Source: Philstar