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(3
): 499-510
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European SMEs amidst the COVID-19 crisis: assessing impact and policy responses
#MMPMIDC7351644
Juergensen J
; Guimón J
; Narula R
ä-/-ä 2020[]; 47
(3
): 499-510
PMIDC7351644
show ga
We consider how the COVID-19 pandemic has challenged European small- and
medium-sized enterprises (SMEs) in the manufacturing sector, and draw suggests
policy implications. The sudden onslaught of the pandemic has acted as an
economic shock, and we consider how it is likely to affect different types of
manufacturing SMEs. We distinguish between immediate effects, a result of the
almost-simultaneous lockdowns across Europe and its major trading partners, and
longer-term implications for both SMEs and the global value chains where they are
inserted. In the shorter run, most SMEs have faced logistical challenges in
addition to demand disruptions, although the severity has differed across firms
and industries. We argue that in the longer-term, there will be different
challenges and opportunities depending on the type of SME. Policy interventions
will also need to be sensitive to the different types of SMEs, rather than
adopting a one-size-fits-all approach. The policy mix will need to shift from its
initial focus on the survival of European SMEs in the short term, towards a more
structural and longer-term approach based on promoting their renewal and growth
through innovation, internationalization and networking.