Resources, Capabilities, and Crisis Management in the SME

Small - and medium-sized enterprises (SMEs) comprise over 90 percent of companies in most countries and contribute greatly to national economies. However, SMEs are characterized by resource limitations in terms of finances, personnel, or managerial time. Such firms encounter crises, which refer to any period of intense difficulty or danger that holds implications for individuals, firms, and governments. Crises affect the stability or performance of the organization at risk. In this chapter, we provide background on SMEs and the nature of crises. We summarize considerations and implications for both corporate and public policy. We offer recommendations on the most appropriate resources, capabilities, orientations, and strategies that SMEs should develop in order to manage the crises that they may face. We also offer a collection of recommendations for public policy, including policies and programs aimed at enhancing national resilience to manage the crises the SMEs encounter.