About two thirds of the world's small and medium enterprises said fighting for survival was their biggest challenge this year, as they strive to maintain and grow their businesses amid low margins and expanding to new markets, a report from the World Economic Forum (WEF) showed.
Talent issues were the next biggest obstacle, with almost half of SMEs — which represent about 90 per cent of all companies globally — saying they are finding it difficult to acquire, retain and upskill their staff, the WEF said in the study in collaboration with the National University of Singapore.
More than a third of respondents said maintaining a strong culture and clear company purpose was a challenge, while a quarter cited keeping up with technological demand and access to funding as hindrances to their growth, it said.
On top of these, inflation, rising interest rates and the ripple effects from Russia's military offensive in Ukraine have added to the challenges, necessitating SMEs to make the right decisions in their strategies, said Rashimah Rajah, a professor at the NUS and co-lead author of the report.
“SMEs and mid-sized companies have unique strengths in their ability to pivot their business models to be more future-ready and, by hiring and developing the right talent, they can mobilise positive internal and external change faster than larger companies," she said.
"However, to fully realise their potential, they also need the support of policymakers in recognising their credentials as well as in rewarding sustainability initiatives.”
SMEs are considered the backbone of an economy and have played a critical role in the private sector, making up a significant portion of businesses. They are responsible for more than two thirds of employment and gross domestic product worldwide, according to WEF data.
Small businesses are generally defined as those with fewer than 49 employees and/or an annual revenue of up to $5 million, while medium ones have between 50 to 250 staff and/or annual revenue below $50 million.
In aggregate, they play a significant role in enabling and shaping growth, innovation and sustainability in economies of all levels.
Globally, the value of SMEs is expected to hit $55.6 trillion by 2027 at a compound annual growth rate of 27.4 per cent, from an estimated $13 trillion in 2021, data from US-based research firm Imarc Group indicated.
The challenges stated in the WEF report magnify the state of SMEs, which are more vulnerable to economic shocks than large corporates and well-funded, technology-focused start-ups.
Large corporates tend to be established, have numerous areas of operations and have more to fall back on, contributing to strong cash flows and enabling them to navigate through difficult situations with fewer challenges, the report said.
Start-ups, meanwhile, have been in favour with investors due to the innovations they bring to the market. Last year alone, global start-up funding soared to $621 billion, more than double 2020's $294 billion, CB Insights said.
SMEs tend to be more financially fragile, have smaller cash buffers and weaker supply chain capabilities, as well as a lower uptake of digital tools, the WEF said. Additionally, they also have limited access to finance, skilled labour and infrastructure to help them stay afloat during economic crises.
"It is therefore vital that SMEs and mid-sized companies 'build in' resilience and increase their chances of survival in the short term while building their ability to respond to future shocks and disruptions," the WEF said.
"With the lack of financial resources to offer competitive salaries and incentives, it is even more crucial for smaller businesses to hire and train the right people."
The Covid-19 pandemic also hit hard, with some estimating as much as a third of small companies closed, eventually resulting in permanent shutdown, the report said.
In terms of keeping up with digital transformation, the WEF argued that despite its "undisputed" importance, this was still largely neglected by SMEs and mid-sized companies.
Growing interest from these firms has focused mainly on applying digital technology to enhance products and services, but the application of digital tools to enhance production and service delivery is often overlooked.
"Management needs to first understand the framework for enacting digital transformation to analyse where they can make the most out of their currently available strengths and where they might need additional resources," it said.
The results of the first round are as follows:
Qais Saied (Independent): 18.4 per cent
Nabil Karoui (Qalb Tounes): 15.58 per cent
Abdelfattah Mourou (Ennahdha party): 12.88 per cent
Abdelkarim Zbidi (two-time defence minister backed by Nidaa Tounes party): 10.7 per cent
Youssef Chahed (former prime minister, leader of Long Live Tunisia): 7.3 per cent
First Person
Richard Flanagan
Chatto & Windus
MATCH INFO
Champions League quarter-final, first leg
Ajax v Juventus, Wednesday, 11pm (UAE)
Match on BeIN Sports
MATCH INFO
Uefa Champions League semi-final, first leg
Bayern Munich v Real Madrid
When: April 25, 10.45pm kick-off (UAE)
Where: Allianz Arena, Munich
Live: BeIN Sports HD
Second leg: May 1, Santiago Bernabeu, Madrid
Who was Alfred Nobel?
The Nobel Prize was created by wealthy Swedish chemist and entrepreneur Alfred Nobel.
- In his will he dictated that the bulk of his estate should be used to fund "prizes to those who, during the preceding year, have conferred the greatest benefit to humankind".
- Nobel is best known as the inventor of dynamite, but also wrote poetry and drama and could speak Russian, French, English and German by the age of 17. The five original prize categories reflect the interests closest to his heart.
- Nobel died in 1896 but it took until 1901, following a legal battle over his will, before the first prizes were awarded.
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Killing of Qassem Suleimani
Living in...
This article is part of a guide on where to live in the UAE. Our reporters will profile some of the country’s most desirable districts, provide an estimate of rental prices and introduce you to some of the residents who call each area home.
Expo details
Expo 2020 Dubai will be the first World Expo to be held in the Middle East, Africa and South Asia
The world fair will run for six months from October 20, 2020 to April 10, 2021.
It is expected to attract 25 million visits
Some 70 per cent visitors are projected to come from outside the UAE, the largest proportion of international visitors in the 167-year history of World Expos.
More than 30,000 volunteers are required for Expo 2020
The site covers a total of 4.38 sqkm, including a 2 sqkm gated area
It is located adjacent to Al Maktoum International Airport in Dubai South
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%3Cp%3E%3Cstrong%3EDirectors%3A%3C%2Fstrong%3E%20Amit%20Joshi%20and%20Aradhana%20Sah%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3ECast%3A%3C%2Fstrong%3E%20Shahid%20Kapoor%2C%20Kriti%20Sanon%2C%20Dharmendra%2C%20Dimple%20Kapadia%2C%20Rakesh%20Bedi%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3ERating%3A%3C%2Fstrong%3E%204%2F5%3C%2Fp%3E%0A
Museum of the Future in numbers
- 78 metres is the height of the museum
- 30,000 square metres is its total area
- 17,000 square metres is the length of the stainless steel facade
- 14 kilometres is the length of LED lights used on the facade
- 1,024 individual pieces make up the exterior
- 7 floors in all, with one for administrative offices
- 2,400 diagonally intersecting steel members frame the torus shape
- 100 species of trees and plants dot the gardens
- Dh145 is the price of a ticket
No more lice
Defining head lice
Pediculus humanus capitis are tiny wingless insects that feed on blood from the human scalp. The adult head louse is up to 3mm long, has six legs, and is tan to greyish-white in colour. The female lives up to four weeks and, once mature, can lay up to 10 eggs per day. These tiny nits firmly attach to the base of the hair shaft, get incubated by body heat and hatch in eight days or so.
Identifying lice
Lice can be identified by itching or a tickling sensation of something moving within the hair. One can confirm that a person has lice by looking closely through the hair and scalp for nits, nymphs or lice. Head lice are most frequently located behind the ears and near the neckline.
Treating lice at home
Head lice must be treated as soon as they are spotted. Start by checking everyone in the family for them, then follow these steps. Remove and wash all clothing and bedding with hot water. Apply medicine according to the label instructions. If some live lice are still found eight to 12 hours after treatment, but are moving more slowly than before, do not re-treat. Comb dead and remaining live lice out of the hair using a fine-toothed comb.
After the initial treatment, check for, comb and remove nits and lice from hair every two to three days. Soak combs and brushes in hot water for 10 minutes.Vacuum the floor and furniture, particularly where the infested person sat or lay.
Courtesy Dr Vishal Rajmal Mehta, specialist paediatrics, RAK Hospital
Green ambitions
- Trees: 1,500 to be planted, replacing 300 felled ones, with veteran oaks protected
- Lake: Brown's centrepiece to be cleaned of silt that makes it as shallow as 2.5cm
- Biodiversity: Bat cave to be added and habitats designed for kingfishers and little grebes
- Flood risk: Longer grass, deeper lake, restored ponds and absorbent paths all meant to siphon off water
