A report by the Australian Centre for Business Growth (AUCBG) at the University of South Australia has revealed five factors that have enabled SMEs to not just survive but also prosper and despite the ecomomic mayhem brought about by COVID.
The report, based on a study conducted between May and July 2020 which analysed data from companies who have attended growth programs delivered by AUCBG, as well as in-depth interviews with a select group those companies’ CEOs, uncovered five key attributes that typify SMEs’ resilience in the face of the pandemic:
• They spot opportunities and pivot adeptly.
• Their data tells a story, successful companies listen.
• It’s their customers’ customers that matter most.
• The right people are their superpower.
• Their CEOs lead with laser focus and execute with alacrity.
“Every Australian SME, in some way, was impacted by the pandemic. But whether that impact was positive or negative was largely determined by the response of the leadership team,” Dr Jana Matthews, ANZ Chair in Business Growth, UniSA Professor and Director of the Australian Centre for Business Growth, said.
“Some chose to stand-by and ‘watch the train wreck happen’, while others were more proactive and quickly made decisions that literally changed the direction of the train, enabled them to avoid disaster, and discover new opportunities,” Dr Matthews added. “COVID created a ‘forced pause’ that rippled through the economy and disrupted conventional stages of growth. Some companies went into a coma, but other CEOs used the pandemic as a circuit breaker and the ‘time-out’ to analyse their business and decide what to stop doing, start doing, and keep doing, in order to prepare for the next stage of growth.”
The report also highlights the importance of selecting employees who match the company’s values and are able to perform the functions required for their jobs, but who are flexible and willing to take on new roles and responsibilities if needed at short notice.
“In order to grow, CEOs have to be able to spot opportunities, identify and assess risks quickly, develop risk mitigation strategies, then make decisions and execute with confidence,” Dr Matthews said.
