SMEs (Small and Medium Enterprises) are the undisputed engine of global economic growth. They constitute about 90% of the world’s companies, which is reflected in their contribution of more than 50% to global employment.

“SMEs are the backbone of any society for job creation and economic contribution. They are pioneers on the journey to economic recovery,” says Brian A. Wong, Vice-President, Global Initiatives, Alibaba Group.

The pandemic came unexpectedly, hitting markets and impacting all the industries and verticals that make up today’s Digital Economy. According to the analysis of the World Bank, the global economy will decrease its growth by 5.2% this 2020. The worst scenario since World War II.

The World Bank’s “World Economic Outlook” report explains that COVID-19 aggressively affected supply and demand, trade and finance, in each of the global markets. It also tells us that advanced economies will reduce their growth expectations for this year by 7%.

What we are experiencing as a society has forced many SMEs to suspend their commercial activities or reduce them substantially. Some have had the fortune and vision to quickly adapt to a new way of operating.

This situation is leading many SMEs to consider new alternatives so as not to completely succumb to the unfavorable scenario. In essence, what is determining the new mentality of SMEs is the urgent need to create new business models, based on innovation and digitization of multiple processes. This sudden change can be overwhelming for founders, managers or entrepreneurs, but it is the only way forward to stay upright during this storm.