Abstract
The COVID-19 pandemic has caused numerous impacts on the global socio-economic environment, affecting the business communities, particularly SMEs that continue to struggle for survival. SMEs are entangled in the pandemic and find it tough to operate as smoothly as before. Without seeing the right tactical interventions to rough out from this pandemic, many SMEs will have to cease their business operations. Even when they are successful in being out of the woods, SMEs must revisit and realign their outdated business strategies to remain relevant and operate effectively in the new normal. The ability to remodel their business and reset new business strategies will be the success factors for SMEs to keep up with the changing business environment and customer patterns. They also need to remain disciplined and persevere in acquiring sustainable business growth in the new normal.
TopBackground
The Covid-19 pandemic has caused enormous damages to world economies. The closure of international borders to minimise transmission of the virus between nations caused massive disruption to the business supply chain. When people are made to stay safe at home, businesses started to feel the impact. Many companies, particularly SMEs, were forced to pull down their shuttles due to the pandemic’s effects. The global trade volume was severely impacted, with an estimated drop of 9.6% in 2020 (International Monetary Fund, 2021). If the threat from Covid-19 fades faster than expected, improved confidence could significantly boost global activity by 2021. On the contrary, a more vigorous resurgence of Covid-19, resulting in stricter containment measures, could further deteriorate the global economy by 2% to 3% in 2021, with a higher unemployment rate.
Key Terms in this Chapter
Small and Medium Enterprises (SMEs): Business enterprises that are smallish by capital, business turnover, and the number of employees operate in various industries. The quantum of each criterion varies by country globally.
Business Sustainability: Creation of long-term value within a business by taking adequate measures in ensuring the processes, products, and manufacturing activities are operated well within an ecological, social and economic environment while maintaining a profit.
Business Continuity Plan: Outline the procedures and instructions a company must follow in the face of a crisis in ensuring its personnel and assets are protected while minimising the effects of interference, enabling business processes to remain functional.
New Normal: New routines or way of life due to changes brought by the Covid-19 pandemic.
COVID-19: An infectious disease caused by a newly discovered strain of coronavirus, a type of virus known to cause respiratory infections in humans.
Tactical Interventions: Action items that work out for short-term goals, usually for a period of one year.
Agile Leadership: Relates to the decisive yet flexible approach in inspiring employees to willingly achieve a goal by effectively adapting to the differences among them and the changing situations.
Strategic Measures: Execution plans that are established along a firm’s long-term business direction. The tenure of strategic plans varies and usually covering a span of three to five years.