Smes In The Uae Facing Major Challenges In Getting Funds

By Author: Virudhagiri Ediyappalli
Total Articles: 22
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The world is facing the deepest recession where even the World Bank has announced that about 5.2% contraction in a global gross domestic product due to the worldwide pandemic. In UAE, as the lockdown restrictions are easing SMEs that are re-opening face a new world of challenges and opportunities. On quick market research, one can notice that cash flow is the biggest obstacle that the SMEs are facing today.

During the pandemic, many SMEs continued to pay their employees even when their business doors were shut. They had to incur continued expenses of their rentals, stocks, etc without having any inflow of cash. Movement of funds is restricted across the businesses that are not involved in essential items. Business consulting firms saw this coming as the lockdown set in with so many unknown parameters involved. Even though the world is still grappling with this virus, businesses need to find their strength and key is to enable smooth funding again.

A report recently published by Facebook on the Global State of Small Business in combination with the World Bank and Organization for Economic Co-operation ...
... and Development; suggests that this economic downturn will prolong for SMEs for some more time. Direct financial support from the Governments or top investors can make a difference. Hence, SMEs across the world including UAE should consider creating a business plan where leakage of expenses can be optimized while further funds are mobilized.

Meeting the challenges in getting funds is essential at this point. The CFO services providers in UAE are growing in demand right now to manage funds wisely. A part of this recalibration is by going digital. With this many businesses have made the switch and their cash flow has improved; some others collaborated with other companies; while some have downsized to ensure they can sustain longer. There are numerous solutions available to make funding easier and talking to a business consultant can help.