Across The Globe Small Businesses Confront Similar Challenges Including Contracts

The March 13-14 International Conference on Micro, Small and Medium Sized Enterprises (“2024 MSME”) in Washington, D.C., co-sponsored by the U.S. Chamber of Commerce and the Organization of American States , is just one example of the dialogue among government, investors and small and medium-sized businesses (SMBs) to expand opportunities for small business owners in the Western Hemisphere.

The challenges and opportunities for SMBs were much the same for participants not only from the U.S., but also such diverse countries as Mexico, Brazil, Honduras, Dominica and the Bahamas. And these issues are the same for SMBs across the globe.

Big or small, what most counties have in common is that small business drives their economies. Indeed, several 2024 MSME attendees shared that their Millennial and Gen-Z population is very entrepreneurial and inclined to start their own businesses rather than work for larger, established companies. That’s inspirational.

And while many attendees report that their counties’ SMBs are faring well, they reported hidden and growing costs that can’t be overlooked. For example, many explained that they have experienced an increase in overhead costs since the pandemic began, and those costs have continued to rise amounting to tens of thousands of dollars to keep SMBs running.

In addition to these financial challenges, many 2024 MSME attendees explained that since the pandemic small business owners have had to invest more in operations, hiring, and technology. These rising costs have put a financial strain on small businesses, with some reducing their profit margins by 25-50% just to stay afloat.

So why do the 2024 MSME attendees, and small business organizations worldwide, still paint a rosy picture? The fact is, small business remains a cornerstone of the world’s economy and society generally. It was clearly evident from the diplomatic corps, financiers and small business advocates at 2024 MSME that there are always opportunities to be found in challenges.

One repeatedly mentioned area of opportunity for attendees is improving contract management. Small business owners in particular described the need to access resources to facilitate contracting to meet demands like regulation and exports. SMBs are looking for best practices and innovative tools that are accessible and affordable. It’s readily apparent that contract management is a key to sustainability and growth for small business worldwide.

“Practical contracting” was a term overheard at 2024 MSME. ?How do small companies meet the demands of logistics, supply chain and inventory management? While there was a genuine need expressed for contracting processes that enhance business objectives and market opportunities, there was a desire to do so working with limited resources and without breaking the bank. ?

Spend some time with small business owners from around the world and you’ll quickly learn they have the desire to harness expertise, technology and innovation like never before. And improved contract management is no exception. Unfortunately, many of the traditional problems facing SMBs – lack of financing, difficulties in exploiting technology, constrained managerial capabilities, low productivity, regulatory burdens – remain obstacles. But once you’ve caught the enthusiasm of SMBs and their advocates, you just know they’ll make it.

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