Usually, SMEs are in a much weaker position than large firms to deal with the
vicissitudes of economic volatility. They will be forced to respond to these
developments by implementing risk management strategies, speeding up customer
payments, focusing on the retention of skilled staff where possible and critical for high
tech SMEs, cutting costs, diversifying into new markets, and improving their corporate
governance. These, however, are not likely to be an adequate response and will need to
be supplemented by appropriate policies aimed at addressing these vulnerabilities.
Usually, SMEs are in a much weaker position than large firms to deal with thevicissitudes of economic volatility. They will be forced to respond to thesedevelopments by implementing risk management strategies, speeding up customerpayments, focusing on the retention of skilled staff where possible and critical for hightech SMEs, cutting costs, diversifying into new markets, and improving their corporategovernance. These, however, are not likely to be an adequate response and will need tobe supplemented by appropriate policies aimed at addressing these vulnerabilities.
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