SMEs Resilience Against the Backdrop of the Current Crises

Abstract

This paper considers the role of small and medium sized enterprises (hereafter, SMEs) within an economy and their capacity to adapt during the crises. Although SMEs represent one of the largest groups of companies in most countries capable of contributing to the growth and development of economic activities, these enterprises are most seriously harmed in crises. The most recent crises, which affected the whole world, had a rippling effect across businesses especially SMEs. The health crisis and the global war crises followed by rising inflation and increasing food insecurity shows that this is the right moment to think about coping strategies for the future crises. The impact of the current crises has emphasized the need to support and increase the resilience of SMEs. Moreover, health and military crises are not just leaving an impact on the economy, the higher threat is that they might come back, and a strong SMEs sector should be prepared to meet them or other new challenges. In this regard, policy recommendations for strengthening SMEs resilience in the future crises will be proposed. This paper has been drawn up, using the official statistical data, the most recent data and references in this field of research and own reflections of the authors. DOI: https://doi.org/10.53486/dri2024.38; UDC: 338.124.4:[334.012.63+334.012.64]; JEL: G00; G30