How can SMEs (small and medium enterprises) grow during a recession? Milan Gyanwali addressed this question for his PhD and now he is teaching at De Montfort University. Before he joined the academic world, Milan used to be an enterpreneur himself, so I’m very happy that I could talk to him.
- SMEs can use three strategies to cope with a recession: reactive (cut costs or quit), proactive (grow) and neutral (survive). The proactive strategy is the best approach.
- Scan your environment frequently. During, but also outside of a recession. For instance, use the PESTEL analysis.
- Look at the combination of A) what your customers want and B) what your company can offer.
- Keep an eye on your supply chain. If suppliers close down, you may have a problem once the economy opens up again.
- Actively encourage learning within your organisation.
- A crisis in your industry is an opportunity to change your business.
- Share your ideas with likeminded people.