It is with no doubt that we are witnessing some of the most dramatic economic downturns, both locally and globally. The sharp drop in oil prices reaching negative values was a true historic event. Furthermore, given the strict lockdown measures being implemented since last October due to COVID 19, the forecasts of major economies have been alarming. Many credible and well known international financial institutions have already reported, during several occasions, that we may be spiraling towards a severe economic recession. As per Fitch Rating Global Economic Outlook published on April 2nd, 2020, it is expected that the “world economic activity to decline by 1.9% in 2020 with US, eurozone and UK GDP down by 3.3%, 4.2% and 3.9%, respectively. China’s recovery from the disruption in 1Q20 will be sharply curtailed by the global recession and its annual growth will be below 2%.”
Unfortunately, small to medium sized enterprises (SMEs) will be the most impacted. Gregg Bishop, the commissioner of the New York’s small businesses agency, recently stated to the New York Times: “I don’t think the New York that we left will be back for some years. I don’t know if we’ll ever get it back.” The New York Times article written by David Goodman and published on April 20, 2020 quotes city officials saying “some 186,000 shops employing fewer than 10 people — could fail. Replacing them could take years.” It does not seem very optimistic for SMEs in the near future.
Despite governments starting to implement SME stimulus packages, such as the multibillion US Dollar stimulus fund recently created in USA, yet many expert investors have raised doubts regarding the effectiveness and success rate of such packages. Investor Kevin O’ Leary, recently stated to CNBC, that “20% of small businesses that got federal loans will fail.”
Consequently, it appears that financial support on its own does not suffice, right? What SMEs need the most right now is the support of affordable, or better yet voluntarily, special matter experts that can share their expertise and lend a hand to help “resurrect” the business.
This is the time that individual professionals must step up their game and assume responsibility towards their community when it needs them the most.
Who are these professionals? graphic designers, web developers, professional photographers, accountants, consultants, QA/QC managers, Chefs and any person that has professional expertise and competencies.
Here are some examples of what could and should be implemented in support of recovering from the current situation:
1. Bookkeeping: As an accountant, you may perform bookkeeping for a restaurant in the street you live in. This may give the restaurant owner more time to focus on the core activities such as procurement, customer service, and well, preparing food!
2. Professional Photography: Take professional photos for restaurants, shops and other small businesses. Help them post the new photos on relevant websites and social media outlets that help in generating sales.
3. Graphic Design/Web Development: A graphic designer/web developer may design a logo/website for the neighborhood fashion store. This can eventually lead to more business leads/customers and accordingly increase sales.
4. Financial & Strategic Consultancy: Financial and strategic consultants may help the nearby flower shop in assessing the cost reduction possibilities that will contribute to financial savings and maintain the affordable prices to the customers without impacting business operations or propose new strategies for expanding product offerings or targeting new customer segments.
5. Food Recipes: A professional Chef may recommend new and innovative recipes to the local restaurant and help in creating more traffic from local customers.
6. Marketing & Social Media Management: A social media manager can help manage the social media pages of a nearby trading company and provide more time for the business owner to focus on their supply chain, collection and many other critical aspects.
Many other examples exist, the above are just a sample.
It is expected that the above initiatives will have a “win-win” effect for both the provider and the receiver. The provider of such a “service” or support will gain valuable experience. Dealing with SMEs can provide business insights and know-how that are not usually available in large scale projects.
Furthermore, the “provider” is expected to receive a sensation of appreciation for giving back to society. The importance of giving back and doing good have always been emphasized from psychological, social and personal development perspectives. After all, when asked 2,300 years ago on what the essence of life is, the Greek philosopher Aristotle said: “To serve others and to do good.”