How should SMEs respond to adversities? A proactive approach is best

The contemporary business environment is one where tough competition and uncertainty are the norm. Significant challenges are magnified when a major crisis comes along. Economic downturns, natural disasters and health crises are among those that invariably wreak havoc across the business world. Technical problems and other internal failures can likewise threaten the company’s existence.

Few organizations are totally immune from the negative consequences of a severe disruption. But it is patently clear that small-and medium-sized enterprises (SMEs) will be most vulnerable. Unlike their larger counterparts, such operators lack the financial clout and other resources to mitigate the damage to some...