With the current COVID-19 Pandemic wrecking havoc across the globe, most businesses communities across all walks of life are going to face hard economic situations that will affect their growth. The pandemic has led to slow down on boarder movement between countries meaning there is reduction in the free movement of labor, goods, law materials and services in order to combat the spread and transmission of the virus. Some transport activities have been put to a halt and it is shutting down commerce and wounding economies globally. Among those facing economic shocks are the small and medium enterprises that mainly serve different economic sectors and surrounding communities. This sector in any economy is mostly vulnerable because they often don’t have enough reserves and collateral to continue their operations and persevere. There are many different business practice and policies that can be put in practice and ensure that small and medium business enterprises grow and even allow them to thrive during tough economic times. When business credit is kept in good shape the money markets cannot hold back business loans hardship-proof an enterprise hence the importance of keeping tabs on one’s personal credit rating as well as businesses’ to keep the credit ratings in good shape. Hard times make it harder to borrow and small business loans are often among the first to disappear. With good personal credit, you will stand a much better chance of being able to borrow the money needed to keep your business afloat if you need to. Keeping cash flow must be the lifeblood of the enterprise and all its sectors; to keep the business healthy, cash needs to keep flowing within its operations. Now no matter how tough times get, having cash flow out of business will never be a problem by implementing strategies to keep the cash flow moving. If small businesses are going to prosper and progress in all times, they need to continue to expand their customer and client base and that means drawing in customers from the competition. Also focusing on competences through research and marketing can also bail out small enterprises from collapsing. Drop the extras and focus on what you do best that is most profitable to failure proof the enterprise operations. In lean times, many small and medium businesses make the mistake of cutting their marketing budget to the bone or even eliminating it entirely. But lean times are exactly the times businesses most needs marketing. Consumers are restless and looking to make changes in their buying decisions. Business need to help them find your products and services and choose them rather than others by getting your name out there. So don’t quit marketing. In fact, if possible, step up your marketing efforts and get new sales points. To mitigate losses businesses should be encouraged to undertake insurance policies to cater for the unforeseen circumstances. If an insurance policy can be mortgaged this helps projects raise funds in times of economic hardships and for further continuity and financial requirements. Establishing of the bridge between the banks and SMES so as to make funds available to these business entities in times of business shocks, therefore firm-bank relationship is a useful tool in resolving problems associated with asymmetric information in business and lending. Furthermore as small and medium enterprises are the pillars of the economies, investment schemes and back up institutions should be established to guarantee funds and support to these enterprises. The accelerated use of technology by small and medium enterprise to reach more consumers would be a stimulus. The adoption of e-commerce and digital solutions would engage many customers and keep their business afloat. For small and medium enterprises to persevere in severe and harsh economic conditions there should be programs to operationalize action plan for these enterprises. Banks and other related financial institutions should develop projects to reschedule and restructure loans for SMES to keep them afloat. Evaluation methods and operation guidelines in all aspects of the business implemented so that enterprises don’t diverge from their responsibilities. Also establishment of follow ups and checks to the firms for the purpose of proper utilization of funds would ensure growth.
