The World Economic Forum recently released a global report that suggests several factors that may lead to new opportunities for small and medium-sized enterprises. In collaboration with the National University of Singapore Business School, the University of Cambridge Judge Business School, and the Entrepreneurs’ Organization, the report also finds that SMEs lag behind when it comes to social impact. Despite the evident necessity of operating in line with sustainability goals, many small and medium businesses still lack explicit strategies and performance metrics centered on the societal impact of their operations.
It is no surprise that one of the biggest challenges faced by Small and Medium size enterprises is the difficulty of finding and retaining talent (52.5 percent of respondents), with survival and expansion (43.8% of respondents), funding, and access to capital (35.7%), a non-supportive policy environment (21%), and the difficulty of maintaining a strong culture and a clear company purpose and value (20%) following closely behind.
SMEs can leverage their size, networks, people, and technology strengths to support their goals of sustainable growth, positive societal impact, and robust adaptive capacity. While SMEs and the broader economy must improve their future readiness, they may only flourish if the necessary infrastructure and regulatory frameworks are in place.
The report proposes to shed light on the organizational capabilities and orientations required for SMEs to generate lasting financial growth, positively impact society and the environment, and develop high levels of resilience and agility.