SMALL AND MEDIUM SIZED ENTEPRISES DURING THE COVID-19 PANDEMIC CRISIS – PROBLEMS AND CHALLEGES
SMALL AND MEDIUM SIZED ENTEPRISES DURING THE COVID-19 PANDEMIC CRISIS – PROBLEMS AND CHALLEGES

Summary/Abstract: Small and medium enterprises are the backbone of economic development. They have huge contribution for employment, utilization ofentrepreneurial abilities, rational use of national and local resources, the creation of added value and the inclusion of the national economy in world tradethrough their internationalization. Their importance is due to their characteristics such as flexibility and rapid production reorientation, entrepreneurial orientation, and especially their creativity and innovation.In the last two years, the world has been facing with a pandemic that hashad major and serious consequences for human health and economy. Actually,the COVID-19 pandemic is a global phenomenon with unprecedented impacton individuals, communities, and organizations. There is no doubt that there isno segment of the society that was not under the pressure of the global pandemic. Тhe COVID-19 pandemic crisis, has already become a permanent part of the 21st century and it cause a significantly changes in businesses operations. SMEs are facing with numerous challenges and problems as a consequence of the pandemic. Many studies shows that the competitive advantage of any modern enterprise is based on ability for innovation in products or production processes. Only through innovation SMEs will increase their and competitive advantage of the national economy. Considering this the focus will be on the innovation strategy and its necessity for overcoming the conditions and consequences caused by the pandemic. The main aim of the paper is to identify the basic problems and challenges of small and medium sized enterprises during the corona virus pandemic in developing countries, specifically in North Macedonia, as well as strategies of transformation and adaptation to changes in the environment. To achieve the aim a survey will be conducted to the sample of SMEs in North Macedonia. At the end of the paper based on the obtained results we will provide recommendations for small and medium businesses on how to remain flexible or competitive through resilience and renewal strategies.

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