5 suggestions to help small and medium businesses grow in 2023

Work-life balance for employees, digital transformation, increasing “catch the trend” is the suggestion of experts for Vietnamese small and medium enterprises.

Small and medium-sized enterprises (SMEs) are a key pillar in the global economy – accounting for 90% of businesses and more than 50% of the workforce, according to the World Bank. According to the Vietnam Business White Paper 2022, the country has more than 857,000 enterprises. Some estimates put the proportion of small and medium enterprises up to 98%.

According to Jeni Mundy, Senior Vice President, Head of Visa Business Development, to cope with pressures and seize opportunities in the volatile economic environment of 2023, the following five trends are can be the key to growth for SME businesses.

Work-life balance for employees

In recruiting talent, SMEs may be less attractive in terms of benefits such as lack of gyms, free lunches or transportation assistance compared to large companies.

However, they still have a competitive edge in some respects. According to Gallup, there are two factors that are being evaluated by candidates as important, equivalent to salary and welfare criteria, including ensuring a balance between work and life, along with a greater sense of purpose. employee personal. They are something SME can improve.

Businesses can use many methods from websites, social networks, complementary marketing activities to convey the core values ​​​​that candidates are looking for so that the two sides can meet. With a strategy of customer testimonials, combined with sharing internal stories from employees, SMEs will have a high competitive advantage, differentiate themselves from competitors – big or small – and attract human resources. financial stability.

Bridging the gap in science and technology

Chuyển đổi số tiếp tục là chìa khóa quan trọng để SME nâng cao khả năng phục hồi và thích ứng biến động. Ảnh: Pixabay

Digital transformation continues to be an important key for SMEs to improve resilience and adapt to change. Photo:  Pixabay

The World Economic Forum (WEF) predicts that 70% of new value created over this 10-year period will be based on technological achievements that support the digitalization of businesses. Living standards and happiness rates are increasingly determined by the participation of technological achievements in the digital economy.

Especially for small and medium enterprises, the exchange of buying and selling, payment becomes convenient and safe; at the same time, it will be easier to reach new customers, operate more efficiently and grow better. This indirectly enhances the resilience of businesses, especially during the economic downturn or facing major external impacts such as the recent pandemic. Therefore, digital transformation to close the gap in science and technology is necessary.

Put prestige and high security as the top goal

Based on strong customer relationships, accessibility, and community orientation, SMEs are among the most trusted in America. According to a survey by the Gallup Institute (a US-based consulting and analytics firm), 68% of those surveyed rated small business trustworthiness, compared with 17% for small businesses. big.

Belief values ​​are fragile and always need to be strengthened. Security negligence will have long-term consequences. And because the resilience is not strong enough, SMEs are the prime target for the risk of security system attacks. To protect their business and customers, these entities should proactively ensure that their security systems are integrated with the right protection technology.

Digitalization of sales, payments, financial management

It is equally important to pay suppliers and partners and receive payments from customers. Although this transaction accounts for the majority of business owners’ interest, digital solutions will make it easier for SMEs to automate, track transactions from partners, and contribute to business operations. business more conveniently.

In 2023, Ms. Jeni suggested that SMEs maintain business activities on e-commerce platforms and promote online payments. Small businesses should increase their focus on integrated use of financial metrics and applications to support strategy planning, cash flow, budget allocation, cost control, and tax returns. , and other related items. As these applications become more widely integrated, business owners will increase their ability to control and run their business more efficiently.

Strengthen your ability to catch the trend

Similar to 2022, high inflation, limited human resources and supply chain challenges will be problems for all businesses. Therefore, they need to become resilient to market fluctuations in order to be successful.

According to Visa research, 86% of small business leaders surveyed cited economic uncertainty as one of their constant concerns. To relieve this, Ms. Jeni said that cloud computing, artificial intelligence and digitization tools, financial issues in business, can help small businesses adjust their direction and strategy in the current situation. fluctuations are taking place.

A recent study shows that 44% of business leaders are in the AI ​​integration phase, preparing for and following this transformation trend. “Although this moment is in the early stages, I personally feel excited, waiting for the ability to apply Chat GPT AI into real-life situations of small and medium enterprises,” said Ms. Jeni Mundy.


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