1. Leverage Technology to Reach New Customers Digital and new technologies offer SMEs the opportunity to expand their reach and efficiency at lower costs, overcoming the scale disadvantage compared to larger players. SMEs should focus on key areas of competitiveness in their value chain, products, and operations, identifying the best technology levers to enhance competitiveness. For example, a local BPO SME utilized a virtual private network (VPN) to transfer their systems onto a custom-made platform, allowing rapid adaptation to remote work during a nationwide lockdown. In just five days, they transitioned over 80 percent of operations to a remote model. The unused capacity was then leveraged to support state initiatives aimed at reducing the spread of COVID-19. A strong technology position helped this BPO remain agile amid market uncertainty and operational disruptions. 2. Develop Clearer Market Access Strategies SMEs can structure their go-to-market strategies more effectively to increase market share and reduce the risk of relying on a few large customers. One agricultural processing business, for instance, rapidly assessed market conditions to identify new areas of demand. Understanding shifting customer needs, potential new client bases, and local substitutes allowed them to refocus on new markets to sustain demand. A BPO provider developed a niche service offering tailored to new markets rather than broadly adapting to demand. This strategic focus helped them prioritize scarce business development opportunities and investment resources more effectively. 3. Drive Efficiency Alongside Sales Many SMEs focus primarily on increasing sales and managing cash flow, but operational efficiency can significantly enhance competitiveness and capacity. A manufacturing SME used visualization tools like management boards and KPI dashboards to optimize operations, leading to a 25 percent reduction in scrap and a 100 percent EBITDA improvement. Improved visibility into inefficiencies allowed them to direct efforts towards problem-solving and productivity. 4. Strengthen Team Skills and Leadership Fast-growing SMEs often struggle to scale due to founder dependency. Investing in leadership development helps create capacity for senior leaders to focus on growth and strategy. A BPO firm formed a shadow management committee with delegated responsibilities, ensuring a smoother transition to remote work. Leadership training and increased financial transparency empowered employees to take ownership of business results, fostering long-term sustainability. Beyond internal innovation, SMEs may require broader support to emerge stronger from the crisis. Many lack access to business advisory services and structural change expertise. Over 50 percent of SMEs are receiving financial institution support, and more than 60 percent are utilizing government relief programs, though awareness of available support remains low.
