SMEs in Times of the Pandemic
Sadly, the unthinkable happened and the pandemic is upon us. The new coronavirus is testing our resilience and our solidarity, at all levels, from nations to communities and individuals.
The world fights back, and the world will overcome this disease and will survive, emerging stronger, yet changed, from many perspectives. We are witnessing a major disruption in our lives, from the effect of the disease itself and from the collateral damages caused by the well justified yet tough protection and containment measures (including the restrictions on civil liberties).
The stock market is badly hit and the economy will bear a heavy toll during the (we hope the very brief) pandemic and some time times in its aftermath. It is critical we think ahead and try to plant the seeds of recovery, if not even anti-fragility.
SMEs Are the Most Vulnerable
We expect small & medium enterprises (SMEs) to be the most affected by the new #COVID-19 #coronavirus.
In reality #SMEs cannot do any business continuity planning other than relying on common-sense.
In addition to drop in sales and worsening financing appetite, self-isolation or quarantine of founders and key personnel will be a potential show-stopper.
Our Call to Action
Governments need to step in now, also on the economy front, not to jeopardize this great source of wealth, jobs, stability & social inclusion.
Responsible banks have agreed to a debt service moratorium for companies affected by #COVID-19 #coronavirus. Most banks and financial institutions are expected to follow suit, either voluntarily or not.
Likewise, Governments should give tax breaks, incentives& exceptional State Aid. This is not a handout but a smart investment in our future!
We are living difficult times and bold political action is required to contain the spillover effect of the epidemic in the economy.
Private Sector Could Help
Similarly, the larger private sector players must join in, assisting SMEs wherever practicable and contingent to their capabilities:
Preferred access to IT infrastructure and teleworking apps
Partial manufacturing conversion to cover shortages
Access to idle real estate to be used as temporary shelters for asymptomatic isolation & quarantine
Extensive coaching, a helping hand and lots of common sense!
Remember it is better to prepare early than panic later!
Stay healthy and stay safe!
