VIDEO
HIGHLIGHT
Log InSign up
A New Dawn for MSMEs & Startups
SummaryTranscriptChat

A New Dawn for MSMEs & Startups

Introduction to the ICSB Exchange Webinar

Opening Remarks

  • Ayman Terribie introduces himself as the Deputy Chair of the Department of Management at George Washington University and Executive Director of ICSB. He welcomes Ahmed Osman, President of the International Council for Small Business.
  • The webinar aims to discuss insights and predictions regarding micro, small, and medium enterprises (MSMEs) in a post-COVID-19 world. The agenda includes a presentation by Ahmed Osman followed by discussions and Q&A sessions.

Current State of Affairs

Reflections on COVID-19 Impact

  • Ahmed Osman shares that he is a small business owner affected by the pandemic, emphasizing that many analyses about "the new normal" are speculative. He intends to provide practical tips based on his experiences during this crisis.
  • The pandemic has caused unprecedented disruptions globally, leading to millions infected and significant economic downturns with panic buying behaviors observed among citizens.

Lessons Learned from Crisis

Economic Repercussions

  • Osman notes that while some economies have managed better than others, most have faced severe recessions due to COVID-19's impact on daily life and business operations. Many individuals are now focused on basic needs like paying bills rather than luxury concerns.

Social Responsibility

  • He highlights the importance of supporting healthcare workers during this time and acknowledges their contributions as pivotal in managing the crisis effectively. This period has also led to reduced carbon emissions globally due to decreased industrial activity.

Future Considerations for MSMEs

Questions for Reflection

  • Osman poses critical questions regarding how MSMEs can adapt post-pandemic:
  • How can we envision a new dawn for MSMEs?
  • What purpose should startups serve moving forward?
  • How will work dynamics change?

Entrepreneurship Realities

  • He emphasizes that entrepreneurship is not as easy as it seems; statistics show that eight out of ten startups fail, indicating a need for realistic expectations among aspiring entrepreneurs. Experience plays a crucial role in success rates among founders, typically around age 38 years old.

Key Strategies Post-COVID

Financial Assessment & Security

  • Businesses must conduct financial health checks to understand their current situation better amidst cash flow deficits exacerbated by the pandemic; this includes assessing potential liabilities and creating action plans for recovery over three to six months ahead.

Reevaluating Business Plans

  • Companies should redefine their business models based on current realities; adapting delivery methods or exploring online services may be necessary for sustainability moving forward. This reevaluation should include setting realistic growth targets aligned with financial assessments made earlier in the process.

Embracing Digital Transformation

Importance of Digital Ecosystems

  • The crisis has highlighted the necessity for businesses to become digitally enabled; companies must leverage digital marketing strategies and create internal systems accommodating remote work without compromising security or productivity standards.
  • There are free resources available for startups looking to enhance their digital capabilities which governments could help facilitate access to these tools.

Rethinking Physical Spaces

Changes in Work Environments

  • Remote working has proven effective during lockdown periods; businesses may reconsider physical space requirements leading potentially towards less overhead costs associated with traditional office setups.
  • This shift could result in more closed offices instead of open-plan designs due to ongoing health concerns related to social distancing practices.

Crisis Management Strategies

Preparing for Future Challenges

  • It’s essential for all businesses—large or small—to develop crisis management strategies or continuity plans ensuring they can withstand future disruptions effectively.
  • These plans should include maintaining cash reserves, investing in digital support ecosystems, and having flexible approaches toward employee compensation structures moving forward.

Conclusion & Recommendations

Human-Centric Approaches

  • Osman encourages businesses to reflect on their humane actions during this pandemic—how they supported employees and communities—and use these narratives as part of their branding going forward.
  • Identifying stakeholders who resonate with these values can help amplify positive stories within communities post-crisis.

Rethinking Global Trade and Supply Chains

The Need for a Humane Approach

  • Emphasizes the importance of adopting a more humane approach in selling products and services globally, rather than solely focusing on capitalist motives.
  • Advocates for diversifying supply chains to mitigate risks associated with global disruptions like pandemics or political issues.

Supporting Global Institutions

  • Stresses the need to support global institutions such as the WHO, which face challenges in enforcing health measures across countries.
  • Proposes that universal healthcare should be considered a global necessity to protect all nations from pandemics.

Economic Challenges for Startups

  • Acknowledges that while some measures may seem burdensome for cash-strapped startups, they are vital for long-term survival and growth.

Adapting to the New Normal Post-Pandemic

Perspectives on Returning to Normalcy

  • Questions whether life will return to normal after the pandemic, suggesting it may not be feasible.
  • Discusses two types of responses: those who adapt cautiously versus those eager to revert quickly to pre-pandemic lifestyles.

Social Distancing Impacts on Industries

  • Highlights how social distancing will fundamentally change industries like airlines and hospitality, affecting capacity and pricing models.
  • Explains that reduced passenger numbers due to social distancing could lead airlines to significantly increase ticket prices.

The Future of Education in a Hybrid World

Shift Towards Online Learning

  • Observes that education has rapidly shifted online due to necessity during the pandemic, altering traditional views on campus-based learning.
  • Notes that while online learning has been adopted widely, students miss out on essential social interactions found in physical school environments.

Hybrid Educational Models

  • Predicts a future where educational delivery combines both online and offline methods, creating more efficient use of space and resources.

Reassessing Supply Chains Amidst Global Disruptions

Local vs. Global Supply Chains

  • Discusses potential shifts towards local supply chains as countries reassess their dependencies on international suppliers post-pandemic.

Opportunities for Regional Integration

  • Suggesting regional economic blocks could enhance cooperation among African nations by leveraging shared resources effectively.

The Role of Government in Supporting SMEs

Government Support During Crises

  • Reflecting on how government intervention can positively impact small businesses during crises by providing necessary support systems.

Balancing Regulation with Business Needs

  • Argues for a balanced relationship between government policies and business operations, emphasizing minimal interference unless beneficial.

The Future of SMEs: Insights and Optimism

Balancing Business and Economic Sectors

  • Businesses play a crucial role in job creation but often require bailouts for sectors like tourism, highlighting the need for a balanced relationship between businesses and economic stability.

Optimism for SMEs Post-Pandemic

  • The speaker expresses optimism about the future of SMEs, believing that challenges can lead to stronger outcomes. They emphasize the importance of resilience in overcoming current difficulties.

Shift Towards Sustainable Business Practices

  • There is a call for more meaningful and sustainable business practices, moving away from superficial branding towards companies that deliver real value through goods and services. This shift is seen as essential for long-term success.

Financial Sustainability and Environmental Considerations

  • The discussion highlights the dual focus on financial sustainability and environmental responsibility, suggesting that future businesses must consider their impact on both the economy and the planet.

Upcoming Initiatives and Events

  • The speaker mentions upcoming initiatives such as knowledge hubs launched by ICSB to provide valuable resources, along with an entrepreneurship summit scheduled in Aswan, Egypt, aimed at fostering community engagement among members.

Collaboration with Global Organizations

  • Exciting collaborations are announced with organizations like the United Nations to offer certificates focused on sustainable development goals (SDGs), indicating a commitment to education and practical application in various settings.

Conclusion of Webinar

  • The session wraps up with gratitude expressed towards participants while teasing future webinars that will continue to support SMEs through various tools available online. A sense of community is emphasized as they look forward to ongoing engagement.
Video description

Things can change quickly in life. The security of one moment can quickly become impermanent before we have a chance to realize it. This is certainly the case with the crisis that has resulted from the global outbreak of the coronavirus (COVID-19). Millions of people globally have been infected, and thousands have already died from the outbreak. The general public is advised to remain socially distant from one another and to regularly wash their hands. The global economy has gone into freefall, a recession, if not a depression, now seems likely. Panic buying in the shops is common practice. No one knows what tomorrow holds. Ahmed Osman is the President of the International Council for Small Business (ICSB), the world’s oldest and largest nonprofit organization devoted to small businesses internationally. The first Arab and African elected to this position since ICSB’s establishment in 1955 and the youngest President to date. ICSB is the platform that distributes new knowledge and information on small business management and entrepreneurial development. ICSB is the originator of the United Nations’ Resolution to create an International Name Day dedicated to Micro, Small, and Medium-sized Enterprises on June 27 (MSMEs Day). He is also the editor of the Global MSME Report for 2019. Ahmed is also the Managing Director of the Global Entrepreneurship Network in Egypt (GEN Egypt) and is a Project Management & Strategy Advisor for government and private organizations in Egypt.