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Crisis In SMEs – What Can Be Done Now

Crisis In SMEs – What Can Be Done Now

Is The Company In Crisis Mode?

Is there a crisis in the middle class? According to a survey Experts, existential fears are disappearing in companies. Nevertheless, 7.1% see their existence threatened. Concerns about wars and persistently difficult times for the economy are increasing. According to experts, 24% of companies see war as the greatest threat to their business activities, and 35% of those surveyed said they had lost up to 25% in sales. The dominant issues are high energy prices, delivery problems, and a shortage of skilled workers. Due to delivery bottlenecks and inflation, every fourth medium-sized company has increased its prices.

68% of the companies surveyed assume that there will be more crises in the future. The combination of different crisis indicators does not allow a forecast into the future. This leads to further uncertainty.

There Is No Universally Applicable Crisis Management.

There is no one-size-fits-all solution to a crisis in SMEs. Every company has to activate its crisis management. A clear and fact-based analysis of the current situation is the first step. Where are there delivery bottlenecks, or where are they to be expected? How are energy costs likely to develop? What price increases can the market cope with? How do we compensate for the lack of skilled workers? How do individual developments influence each other? These questions are often at the beginning of planning for the future.

Securing The Company’s Future Is The Top Priority In A Crisis In Medium-Sized Companies.

Strengthening the company’s future viability and securing its existence must remain the top priority. This also means creating reserves for further negative developments and being prepared. There are a variety of ways to make smart decisions now against a crisis that threatens the existence of small and medium-sized businesses. Many companies must remember how to manage crises due to long-term positive economic developments. This skill must now be re-learned. It is becoming a central future viability of companies and organizations.

Open Communication With Employees

Open communication about the situation with the employees also seems important to me. They are often the ones most affected by the consequences of unwelcome decisions. A crisis team should also represent a cross-section of employees in the company so that their worries, ideas, and thoughts can flow into the decision-making process.

Does The Crisis In Medium-Sized Companies Also Offer Opportunities?

Crises always lead to questioning previous strategies. They point out omissions that should have been taken care of. There are certainly better times to take advantage of the opportunities in this crisis with medium-sized companies. Now it is often about damage limitation and ensuring operational processes. But that time will come. Careful follow-up will certainly bring new insights. In this way, it also contributes to increasing future viability.

Also Read: Hyper-Personalization – Key To Success In The Purchasing Process For Digitized SMEs

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