
Digital Platforms: Recovery Tool for SMEs in the Asia Pacific
October 1th, 2021 – While the COVID-19 pandemic continues to disrupt businesses worldwide, the importance of staying connected becomes all the more apparent for small and medium-sized enterprises (SMEs) across the Asia Pacific region. When post-pandemic recovery starts, digital platforms would become a locomotive to assist them on the road to revival and success.
COVID-19 influence on SMEs in Asia
In most ASEAN countries, SMEs represent around 97-99% of the enterprise population, accounting also for 66.3% of employment. They mainly comprise enterprises in the trade, retail, and agricultural sectors.
While operating in traditional markets, many of these SMEs have been gravely affected by social distancing measures. The majority of them stopped trading one or more months after the outbreak of COVID-19. And those who didn’t suspend operations faced disrupted supply chains and low demand.
Digital platforms: the vehicle for SME recovery and development
In order to gain greater access to diverse global markets and mitigate the risk of supply chain disruption, SMEs can use e-commerce platforms as an important channel of connection. The survey of more than 1,500 businesses in the Asia Pacific discovered the following benefits organizations can reap from digital transformation initiatives: improved profit margins; cost reductions; productivity; ability to offer new products and services; customer loyalty and retention.
Written by Finextra
Photo: Forbes
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