Evaluating business development services' role in enhancing SME resilience to economic shocks
1 University of Chicago Booth School of Business, USA.
2 Independent Researcher, Australia.
3 Department of Agricultural and Environmental Sciences, School of Biosciences, University of Nottingham, UK.
4 Independent Researcher, Lagos Nigeria.
5 Ulster University, United Kingdom.
Review Article
Global Journal of Research in Science and Technology, 2024, 02(01), 029–045.
Article DOI: 10.58175/gjrst.2024.2.1.0047
Publication history:
Received on 27 July 2024; revised on 11 September 2024; accepted on 13 September 2024
Abstract:
Small and medium-sized enterprises (SMEs) are vital contributors to economic growth and job creation but are particularly vulnerable to economic shocks due to their limited resources and often fragile financial structures. Business Development Services (BDS), which encompass a range of non-financial services such as training, mentoring, market access support, and business advisory services, play a crucial role in enhancing SME resilience to these shocks. This paper examines the impact of BDS on SME resilience, focusing on how these services help SMEs navigate economic downturns, maintain operations, and achieve sustainable growth. BDS provide SMEs with the tools and knowledge necessary to improve operational efficiency, diversify income streams, and access new markets, thereby mitigating the adverse effects of economic shocks. Training and capacity-building programs enable SMEs to enhance their business management skills, adopt innovative practices, and implement strategic planning processes that are essential for survival during economic downturns. Additionally, BDS facilitate access to critical market information, helping SMEs to identify opportunities in challenging times and adapt to changing market conditions. Mentorship and business advisory services also play a pivotal role in building SME resilience by offering tailored guidance and support. Experienced mentors can provide SMEs with insights into risk management strategies, financial planning, and crisis management, helping them to make informed decisions during periods of economic uncertainty. Moreover, BDS that focus on market access support assist SMEs in expanding their customer base and entering new markets, which can be particularly valuable when traditional markets contract during economic shocks. The effectiveness of BDS in enhancing SME resilience is evident in numerous case studies where SMEs that actively engaged with these services demonstrated greater adaptability, reduced risk exposure, and improved financial stability compared to those that did not. However, the availability and accessibility of BDS remain uneven, particularly in developing economies, where the need for such services is often greatest. In conclusion, BDS are instrumental in strengthening SME resilience to economic shocks. By providing essential support in areas such as capacity building, market access, and strategic planning, BDS help SMEs to not only survive but thrive during challenging economic periods, contributing to broader economic stability and growth.
Keywords:
Economic Shocks; SME; Resilience; Business Development Services; Evaluating
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