The COVID-19 pandemic shows no signs of slowing down through its new variants, different waves, and more viciousness. Vaccination is the best way to counter the SARS-CoV-2 virus, and various countries have picked up pace in their vaccination drives. Amid this biological chaos, companies, especially MSMEs are facing a tough time coping up with their business requirements.

The expectations for MSMEs revolve around the changes in consumer behavior, investment patterns, and how they need to modify their offerings in these unprecedented times. If anything, they can carry forward their learnings from 2020 to optimize their approach and bring stability and sustainability to their ventures at a time when things are extremely unpredictable.

What are the Expectations of MSMEs in 2021 after COVID

1. Increased Digitization

Technology has now become everyone’s second nature as it’s an effective way to reduce commute. MSMEs can expect to see more of it in 2021, and companies need to incorporate innovative technological solutions to stay relevant amid the ongoing pandemic. Your consumers expect you to offer your services or products virtually without any degradation in the quality. Therefore, the onus is on you to make the best use of technology to make it happen. The image below depicts the inclusion of digitization in various sectors after the pandemic outbreak:

Image Source: BDO

You can leverage various tools to ensure that your employees are connected, aligned, and don’t burn out during their work hours. It’s also the best time to collaborate with online payment brands to offer a seamless shopping experience to your customers. You get a thumbs up from them the moment they find their preferred payment mode on your portal.

2. Modifications in Business Model

A business model is a set of plans that covers various dimensions of business like product description, target market, cost structure, strategies, etc. Due to COVID, enterprises have realized the need to upgrade their business model to survive in the market. Even though the primary idea might remain the same for some enterprises, there can be significant changes for other MSMEs.

COVID showed that businesses, especially MSMEs require a more flexible and agile model to cope with a highly volatile external business environment. For instance, the cost structure of IT businesses is significantly revised as their variable costs are saved (due to remote work), while fixed and long-term costs are now on the higher side because of expansion and investment plans.

3. Changes in Consumer Behavior

COVID has severely affected the purchasing power and buying pattern of the target market of MSMEs. In short, consumer behavior has changed dramatically, and you can expect more of it in 2021. The degree and direction of change will totally depend on the nature of the business and the type of the product. Therefore, MSMEs need to empower their research and development (R&D) departments to minimize the associated risks. Have a look at this statistical chart published by Marketing Charts to understand the change in consumer behavior (adults) due to COVID:

Image Source: Marketing Charts

Hygiene, safety, and medical assurance are on everyone’s priority list, so your offerings should also adapt accordingly. There are various other factors that affect attitude, emotions, preferences, and responses for different enterprises.

4. Streamlined Remote Work Culture

National and regional lockdowns are effective in controlling the spread of coronavirus in communities and societies. However, it can act as a roadblock for MSMEs trying to maintain a productive working ecosystem. Hiring more freelancers and assigning project tasks to gig workers is an effective way of countering this issue. A study done by Upwork suggests that the role of seasoned freelancers has been instrumental in familiarizing clients with the new normal and the image below depicts the same:

Image Source: Upwork

Freelancers are well-versed with working remotely for clients, and MSMEs should collaborate with such resources to bring more flexibility to their working model. Employees around the world have also embraced the remote work culture and continue to work productively for their respective organizations to ensure timely work delivery.

5. After Sales Services and CSR

Today, businesses have started taking additional care of their customers as they have become aware of their responsibilities. The current market conditions have proved that “customer is a king,” and enterprises are bound to take care of their king even after the sale is done. MSMEs should focus on their after-sales services to maintain their market share because consumer satisfaction is a critical metric in these testing times.

Corporate Social Responsibility (CSR) is mandated by the government for companies and businesses. We can expect to see a significant increase in CSR activities by enterprises to protect and enhance their market image. It’ll further lead to an increase in market share and several other benefits, some of which include brand recognition, customer loyalty, and government support.

To Conclude

There’s no denying that these are testing times. But the only way to move forward and make progress is to accept the reality and plan accordingly. MSMEs have a lot of challenges to overcome, but they’ve proven in the past year that they’re motivated to surpass all the hurdles. 2021 is going to be critical for MSMEs, and the expectations mentioned above can help them prepare for the after-COVID scenario in the right way.