Dream big, start small: SMEs and mid-size firms can pivot nimbly to a greater cause

NO ONE doubts that small and medium-size enterprises (SMEs) are an important segment of the economy. They make up more than 90 per cent of all companies, 70 per cent of jobs, and by some estimates, about 70 per cent of global gross domestic product (GDP). But little attention has gone to empowering SMEs in impacting their environment positively.

The same goes for mid-size companies that fall between SMEs and large enterprises. Don’t underestimate their impact. In Canada, 1.6 per cent of all firms fall in the mid-size category, but they contribute to 12 per cent of GDP and 16 per cent of employment.

Despite the importance of SMEs and mid-size firms, they are often the most vulnerable. Even as the economy recovers from the Covid-19 pandemic, global disruptions such as the energy crisis, climate change and hyperinflation continue to rock the boat. The result is that smaller firms tend to be more disproportionately affected.