Small and Medium Sized firms are less prepared for crisis 

Even the most well-managed businesses can face unexpected challenges, and small  and medium sized businesses, in particular, may feel the impact more acutely due to limited resources. However, viewing a crisis as an opportunity for growth can make a difference. By developing a strong crisis response plan, businesses can mitigate customer backlash and minimize sales declines. This proactive approach not only helps preserve the bottom line but also strengthens the brand’s reputation in the long run.

Building on previous research namely those made by  OIC (Heiderich 2020 and Observatoire international des crises), I developed a comprehensive survey to investigate the impact of company size, market instability, and crisis awareness on crisis readiness. This survey effectively gathers demographic information and assesses key aspects of crisis readiness, such as access to crisis management resources, sufficient budgets, and appropriate training. It also includes targeted questions that evaluate the perceived likelihood of a crisis and the degree of market instability.

My survey clearly demonstrates that market dynamism has a substantial impact on both financial and non-financial performance. Innovative companies that choose to compete in unpredictable markets are poised to reap significant rewards—an insight that many entrepreneurial firms fully recognize and strategically embrace.
Upon thoroughly analyzing the results and delving deeper into the data, I established clear connections between operating in dynamic markets, the perceived likelihood of a crisis, and crisis readiness. The findings unequivocally demonstrate that small to medium-sized companies recognize that crises can occur, yet they expose themselves to greater risks due to their lack of effective systems to address these challenges.

However, crisis readiness was the second most important factor in performance, and this is where smaller firms often fall short. Managers must recognize the critical link between crisis preparation and organizational performance. They must proactively plan for a crisis long before it appears on the radar, regardless of the prevailing belief that it may never occur.

Crisis planning and trainings is not a luxury. It is a necessity. Organizations that have not faced a crisis may consider it unnecessary, until they do. In those moments, the advocates of crisis planning will emerge as the true heroes within the organization.

Now, let’s close by briefly  scrolling the 10 main types of crises that might face PME / SME in our region : Reputation crisis, Labor crisis, Crisis of malevolence, Data breach and cyber attacks crisis, Workplace violence, Financial crises, Natural disaster crisis, Organizational crises, Product recall crisis and Technological crisis.