2020 Jul 11;47(3):499–510. doi: 10.1007/s40812-020-00169-4

Table 1.

Short-term and longer term effects of the COVID-19 crisis on manufacturing SMEs

	Stand-alone SMEs (consumer and industrial)	Specialist-supplier SMEs	Knowledge-based SMEs
Short-term	Most SMEs face liquidity issues and tightened financial constraints, following the disrupted operations during the lockdowns There is an increased reliance on governmental subsidies and many SMEs apply for their local, governmental support schemes; depending on eligibility The main focus is on addressing immediate operational issues, ‘fixing’ particular disruptions on the demand and the supply side New concepts and changes are put in place to ensure further governmental restrictions are being followed; for example, ensuring social distancing measures
Medium-/ Long-term	Many of these SMEs will have to upgrade their digital infrastructure, enabling online sale channels, teleworking etc Employees will have to be re-trained accordingly Long-term investments will be required to upgrade production processes to cut costs and increase productivity New opportunities will arise for industrial SMEs to enter new supply chains or deepen their involvement in existing ones; some may also re-organize their own supply chains	GVCs will be reorganized; growing trends towards multiple sourcing, stock management; reshoring, embracing geographical proximity Supplier SMEs will see changes on both sides: They will re-organize their own supply chains and will see their key customers reorganize Staying in existing agreements and entering new ones will depend on their ability to keep costs low and match prices; without compromising quality Long-term and increased investments in digital technologies will be required to enable automation	New applications of their technologies can arise in a post-COVID-19 world; for example, in areas such as medical research and equipment Some may adapt their nascent technologies towards finding solutions for and tackling the issues having arisen during and through the pandemic Successful SMEs can benefit from further governmental research grants New start-ups may emerge to capture areas of growth through ‘creative destruction’

Stand-alone SMEs (consumer and industrial)

Specialist-supplier SMEs

Knowledge-based SMEs

Short-term

Most SMEs face liquidity issues and tightened financial constraints, following the disrupted operations during the lockdowns

There is an increased reliance on governmental subsidies and many SMEs apply for their local, governmental support schemes; depending on eligibility

The main focus is on addressing immediate operational issues, ‘fixing’ particular disruptions on the demand and the supply side

New concepts and changes are put in place to ensure further governmental restrictions are being followed; for example, ensuring social distancing measures

Medium-/ Long-term

Many of these SMEs will have to upgrade their digital infrastructure, enabling online sale channels, teleworking etc

Employees will have to be re-trained accordingly

Long-term investments will be required to upgrade production processes to cut costs and increase productivity

New opportunities will arise for industrial SMEs to enter new supply chains or deepen their involvement in existing ones; some may also re-organize their own supply chains

GVCs will be reorganized; growing trends towards multiple sourcing, stock management; reshoring, embracing geographical proximity

Supplier SMEs will see changes on both sides: They will re-organize their own supply chains and will see their key customers reorganize

Staying in existing agreements and entering new ones will depend on their ability to keep costs low and match prices; without compromising quality

Long-term and increased investments in digital technologies will be required to enable automation

New applications of their technologies can arise in a post-COVID-19 world; for example, in areas such as medical research and equipment

Some may adapt their nascent technologies towards finding solutions for and tackling the issues having arisen during and through the pandemic

Successful SMEs can benefit from further governmental research grants

New start-ups may emerge to capture areas of growth through ‘creative destruction’