COVID-19 has shown that resilience matters, and laid bare the "resilience divide" between small and large firms. While developed countries have the financial means to sustain their economies and protect the most vulnerable, most developing and least developed countries are unable to do the same. In these countries, many small and medium-sized enterprises (SMEs) succumbed to the shock. But with every crisis comes opportunity.
The SME Competitiveness Outlook 2021 - published by the International Trade Centre (ITC) - analyses how small businesses can rebuild from the COVID-19 pandemic so they are prepared to face the looming climate crisis. It provides a 20-point Green Recovery Plan to foster competitive, resilient and environmentally sustainable small and medium-sized enterprises (SMEs).
The report finds that small firms are less resilient to shocks – whether from the pandemic or climate change – because they do not have key business fundamentals in place. It also identifies key areas where small businesses with limited resources can invest to seize opportunities of the green transition – and what business support organizations, governments, lead firms in value chains and international organizations can do to empower small firms to be competitive, resilient and sustainable.