This archive report was first published on 9 June 2020.
On June 9, 2020, the COVID-19 pandemic was in full swing, affecting every part of the world and bringing the global economy to a standstill. In Kenya, small and medium-sized enterprises (SMEs) were among the hardest hit, with lockdowns, border closures, and movement restrictions severely impacting their operations.
However, as American civil rights activist Martin Luther King Junior once said, 'You can't fly then run, if you can't run then walk, if you can't walk then crawl, but whatever you do you have to keep moving forward.' This quote encapsulates the spirit of resilience that SMEs must adopt to survive the crisis.
One of the key strategies that SMEs can employ to stay afloat is to invest in technology. With the government's stimulus measures, such as reducing value-added tax and corporation tax, SMEs can take advantage of these initiatives to digitize their operations.
Embracing information and communication technology (ICT) is a pivotal aspect in this pandemic and in the future for SMEs. This can improve the supply chain, encourage digital marketing and trading, and enable business people to sell goods and services online, just like companies such as Jumia.
Advertising the business online and using social media platforms can heavily boost commercials. It is also advised not to transact with cash, deploying digital transactions such as e-banking is core to combating COVID-19.
However, the success of digital trading can be effective with the aid of the government. It should provide good conditions and encourage individuals to embrace digital economy via reducing taxation on banking among other measures.
Insurance covers should be enforced among small business holders so that in such times they can be able to sustain themselves.
