- Smaller firms, greater risks: How Strait of Hormuz disruptions could trigger an exclusion effect for small and medium-sized enterprises8.21 MB
The Strait of Hormuz disruptions are no exception.
Large companies can spread risk across suppliers, markets and financing sources. Small and medium-sized enterprises (SMEs) typically cannot.
As energy, transport and financing costs climb, margins shrink and supply chains become disrupted. The pressure can force firms to scale back production, postpone investment or exit altogether. Exclusion becomes a constant risk.
The economic consequences extend beyond the firms themselves. SMEs generate much of the world's employment and entrepreneurial activity.
When SMEs falter, growth becomes less inclusive and less resilient.
Smaller firms are at the heart of the global economy. They are key providers of inputs and services along supply chains. They fuel entrepreneurship, innovation and economic diversification.
Report by the United Nations Conference on Trade & Development
EMAIL THIS ARTICLE SAVE THIS ARTICLE ARTICLE ENQUIRY FEEDBACK
To subscribe email subscriptions@creamermedia.co.za or click here
To advertise email advertising@creamermedia.co.za or click here
