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A Review of Global Challenges and Survival Strategies of Small and Medium Enterprises (SMEs)

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  • Sisira Kumara Naradda Gamage

    (Department of Economics, Rajarata University of Sri Lanka, Mihintale 50300, Sri Lanka)

  • EMS Ekanayake

    (Department of Social Sciences, Rajarata University of Sri Lanka, Mihintale 50300, Sri Lanka)

  • GAKNJ Abeyrathne

    (Department of Economics, Rajarata University of Sri Lanka, Mihintale 50300, Sri Lanka)

  • RPIR Prasanna

    (Department of Economics, Rajarata University of Sri Lanka, Mihintale 50300, Sri Lanka)

  • JMSB Jayasundara

    (Department of Environmental Management, Rajarata University of Sri Lanka, Mihintale 50300, Sri Lanka)

  • PSK Rajapakshe

    (Department of Environmental Management, Rajarata University of Sri Lanka, Mihintale 50300, Sri Lanka)

Abstract

Economic globalization has created many challenges for small and medium enterprises (SMEs) due to the rapid increase in competition. Therefore, the downfall rate of SMEs is relatively high, a short period after their commencement. Accordingly, SMEs need to adopt survival strategies and strategic methods to succeed in confronting the various global challenges faced by the SME sector. This study critically examined the existing literature on global challenges for SMEs to understand the SMEs’ survival and successive mechanisms in the present competitive business background. Published information related to the field by the multilateral institutions and 110 research papers published by four recognized publishing companies, i.e., Emerald, Elsevier, Taylor and Francis, and MDPI, were chosen for this study. The review revealed the critical global challenges for SMEs within the context of economic globalization. They are the global market competition, global finance and economic crises, information communication technology, the emergence of multi-national corporations, transnational corporations, consumer changes and especially their preferences, trade dumping, international terrorism, and religious conflicts and trade wars. Furthermore, the study considered the survival strategies of SMEs in the industrial platform to recognize sustainability-related policies, specifically, the necessity for a robust theoretical examination on the survival strategies of SMEs in the field of global challenges.

Suggested Citation

  • Sisira Kumara Naradda Gamage & EMS Ekanayake & GAKNJ Abeyrathne & RPIR Prasanna & JMSB Jayasundara & PSK Rajapakshe, 2020. "A Review of Global Challenges and Survival Strategies of Small and Medium Enterprises (SMEs)," Economies, MDPI, vol. 8(4), pages 1-24, October.
    • Handle: RePEc:gam:jecomi:v:8:y:2020:i:4:p:79-:d:423239
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    2. Amin, Hindu Jibril, 2021. "Effect of Entrepreneurial Marketing Dimensions on Small and Medium Enterprises Performance in Nasarawa State," OSF Preprints n483y, Center for Open Science.
    3. Rajapakshe, PSK & Gamage, SKN & Prasanna, RPIR & Jayasundara, JMSB & Ekanayake, EMS & Upulwehera, JMHM & Wijerathna, WAID & Abeyrathne, GAKNJ, 2020. "Social Capital, Performance of SMEs, and COVID-19 Pandemic," MPRA Paper 109530, University Library of Munich, Germany, revised 30 Aug 2020.
    4. SAAD Nourhan Ahmed & MLAKER Kac Sonja & ELGAZZAR Sara, 2023. "Assessing The Situation Of Micro, Small, And Medium-Sized Enterprises In The Emerging Markets Of Egypt Under Covid-19 Implications," Studies in Business and Economics, Lucian Blaga University of Sibiu, Faculty of Economic Sciences, vol. 18(2), pages 270-289, August.
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    7. Agapi Dima & Eleni Arvaniti & Chrysostomos Stylios & Dimitrios Kafetzopoulos & Dimitris Skalkos, 2022. "Adapting Open Innovation Practices for the Creation of a Traceability System in a Meat-Producing Industry in Northwest Greece," Sustainability, MDPI, vol. 14(9), pages 1-13, April.
    8. HMJCB Heenkenda & Fengju Xu & KMMCB Kulathunga & WAR Senevirathne, 2022. "The Role of Innovation Capability in Enhancing Sustainability in SMEs: An Emerging Economy Perspective," Sustainability, MDPI, vol. 14(17), pages 1-22, August.
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