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The Impact Of The Great Resignation .....................

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While there is no denying the extensive outreach that multinational corporations possess in terms of formulating sustainable and innovative solutions catered towards furthering the global economy and advancing social development, the potential of small and medium-sized enterprises or SMEs, in this regard, is often disregarded, leaving this avenue completely unexplored.

To understand the importance of SMEs in furthering sustainability, it is essential to acknowledge the cumulative value that such enterprises add to the economy around the globe, the article states. Despite their limited scale or functionality, SMEs, however, are relatively more adept in embracing innovations oriented towards fulfilling the ever-transforming requirements of the volatile global market. The advent of the digital age has further accelerated the development of such enterprises making it easier for them to expand and proliferate sustainably, notwithstanding impediments that might arise out of a limited budget or meager resources. It is crucial, therefore, to unearth the importance of SMEs in furthering sustainability around the globe and to implement such techniques to harness their potential, so that they succeed in adopting innovations, generating considerable revenue, as well as augmenting profitability.

Coming off from the recent UN Climate Change Conference and global competitiveness report, there is much talk around sustainability and innovation that is focused on long-term impact in line with environmental, social and governance (ESG) goals. Much attention has been placed on large multinational corporations and how they can contribute to a more sustainable global economy. They are held to higher sustainability standards – and rightly so – as they have access to a wider pool of resources to create substantial change.

However, small and medium-sized enterprises (SMEs) tend to be overlooked. This is in spite of the fact that they make up for more than 90% of all companies, and according to some estimates, provide up to 70% of employment and 70% of global GDP.

In a recent World Economic Forum (WEF) paper, I partnered WEF, the University of Cambridge and Entrepreneurs’ Organization in examining closely this overlooked segment of the economy, which has tremendous potential in creating long-lasting change.

In our conversations with over 300 founders and executives of SMEs across the globe, while it was clear that sustainability is the way forward, many did not view sustainability as their main challenge. This could possibly be due to SMEs thinking that they are too small to make an impact. The recent pandemic also caused many companies to revert to “survival mode” and invest less in sustainable strategies.

However, as the figures above show, SMEs collectively have a great impact on the global economy. And while they tend to be among the hardest hit by external shocks in the environment, they also tend to be among those which can benefit the most from an ever-changing market.