Key Challenges SMEs are facing during Coronavirus Crisis

Corona Virus has spread in every nook and cranny of the world. The death toll is rising exponentially and global markets are plummeting like never before. Governments have ordered a total lockdown and asked citizens to self-quarantine themselves by staying back in their homes. While from a health perspective this is a good step, it has serious business implications. Businesses, especially SMEs cannot withstand the state of financial turmoil for so long. This article talks about the key challenges that SMEs are facing in the coronavirus crisis.

1. Limited or no online presence

Generally speaking, SMEs have limited online presence. They rely more on manual methods of working, but current circumstances don’t permit that. When the whole world is working from home, and when governments have formulated strict regulations for anyone venturing out on the streets, you cannot afford to run your business in the old fashioned way. Say, for instance, you run a chain of restaurants in the city and rely on customers who show up daily. But due to the COVID-19 outbreak, the incoming traffic is nil. You will have to change according to the circumstances. Sign up for an online delivery service to get the food delivered at your doorstep.

2. Less exposure to remote working

Due to the Corona Virus crisis, companies across the globe have asked their employees to work from home. This is why remote working has emerged as a formidable solution to fight the virus. As far as SMEs are concerned, it is a fairly new concept that requires proper planning and implementation. SMEs should understand that remote working technology will help them to stay connected with their geographically dispersed teams 24/7, share documents and files instantly, resolve customer queries at a moment’s notice, and keep a watch over business processes from the factory floor without the involvement of onsite workers.

Also Read: Genie for Service Industry to Solve Remote Working Challenges

3. Difficulty in keeping clients

Companies of all sizes – big and small are struggling to keep their clients. Though big companies can keep themselves afloat during times of crisis, the same does not apply for SMEs. They survive on regular cash inflow. But when people are more inclined to save money, expecting them to buy your products and pay for your services with the same vigor is a pipe-dream. SMEs should prepare a list of vulnerable clients and offer a bail-out package in the form of late payments or discounts to keep clients in their books.

The corona virus crisis has ruined the entire world economy. It is expected to only worsen in the coming times. The situation will aggravate, especially for SMEs if they don’t invest in technology. The best way out is to purchase an ERP that will help SMEs make their business agile and manage it conveniently. At Sage, we are home to an industry-leading ERP for SMEs that helps you deal with all the challenges mentioned in this article. To know more about it, SMS SAGE to 56767. You can also write to us at sales@sagesoftware.co.in.

Disclaimer: All the information, views and opinions expressed in this blog are those of the authors and their respective web sources and in no way reflect the principles, views or objectives of Sage Software Solutions (P) Ltd.