FUNDES in collaboration with Great Place to Work Mexico

ConsultingFUNDES in collaboration with Great Place to Work Mexico

FUNDES in collaboration with Great Place to Work Mexico

FUNDES in collaboration with Great Place to Work Mexico

7 immediate solutions MSMEs can take Immediate solutions for MSMEs to face adverse situations.

By: Marisol Monroy, MSME Expert
2020

At this time when the situation of our country and the world must be strengthened through trust and mutual support, a bond of solidarity between all actors of the business ecosystem is necessary to face the scenario of health crisis.

Micro, small and medium enterprises (MSMEs) are strategic allies to accelerate economic and social reconstruction. Therefore, FUNDES, in collaboration with Great Place to Work Mexico, provides the following recommendations to mitigate negative impacts on their human capital and management, and to promote their innovation capacity.

 

MSMES IN ACTION!

In this context, the implementation of good practices inside and outside the company helps MSMEs in different sectors to act quickly. The link they represent within the value chain must remain solid now more than ever.

 

INTERNALLY

1) Constant and truthful communication: MSMEs must be informed by reliable and objective sources to convey important messages to their employees. Communication should avoid the creation of rumors, promote trust, and focus on actions that preserve their integrity and that of the company.

2) Involve and motivate employees: it is advisable to motivate employees to participate in order to hear their doubts or suggestions. Make them aware of the importance of being committed and responsible, and motivate them to reduce panic and increase their assertiveness.

3) Telework goes hand in hand with trust: At this moment, telecommuting will no longer be just an option, but a necessity. Today, there are many options for this, but companies must prepare their employees to define goals and the best means to achieve them.

4) Determine where the company’s main impacts are: it is essential to conduct a study of your company and understand how much sales have decreased, how your inventory is doing and how much debt you have. In this way, you will be able to determine what are the main issues that you need to address and fix.

 

EXTERNAL LEVEL

5) Negotiating and communicating with customers: The impact on the national and international economy will be high. If MSMEs have contracts with large companies in which they see risks such as non-payment, they should develop or implement measures to mitigate these risks; when renegotiating, they should seek mutual benefit between the parties and consider offering compensation.

6) Analyze financing options without taking on too much debt: In the face of crises, private or public financing is an alternative to consider. MSMEs should analyze different options to mitigate negative impacts. There are several online platforms with products for MSMEs that can be used.

7) Optimize the Internet distribution channel: If the industry allows, MSMEs benefit from exploring digital platforms that facilitate their operations. Maintaining business relationships with existing customers and growing demand for local consumption are two strong drivers for small businesses to adopt digital practices.

About FUNDES

FUNDES Latin America is a consulting firm with more than 35 years of experience in developing MSMEs and their successful integration into the value chain of large corporations. FUNDES has worked with more than 100 multinational companies, with more than 30 governments, development agencies, and foundations, and has implemented projects in 17 Latin American countries that have impacted and transformed the lives of more than one million micro, small and medium enterprises, with value co-creation programs and innovative and competitive solutions to the main challenges of the sector. 

Business Units:
  • FUNDES Consulting

Dedicated to developing business services that support the strategy of corporations, foundations, and governments seeking to integrate small businesses into the traditional economy. FUNDES Consulting’s offering targets the Business segment, which provides in-depth knowledge of large companies’ MSME partners and enables the development of interventions that increase business results and impact the sector. And the Impact segment aims to promote impact initiatives that leave a mark in the environment in which they are located.

  • FUNDES Catalyst

Dedicated to promoting micro-entrepreneurs who are otherwise excluded from innovative services in Latin America’s traditional markets. Latin America’s traditional marketplaces are excluded. We develop, launch and operate innovative solutions and start-ups to solve the fundamental business problems of micro and small enterprises, which are typically family-owned and represent 98% of all businesses in the region.

Contact:
internacional@fundes.org

Fiorella Blanco,

Director of FUNDES Consulting

Corentin Larue,

Director of FUNDES Catalyst

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