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THE INSTITUTE OF CHARTERED PROFESSIONAL MANAGERS OF SRI LANKA
JANUARY 2021

One can argue that the economic recovery may take around an economic downturn. One can forecast that consumers
24 months for certain countries. As Individuals, our lives have will want to cut down on luxuries and unnecessary
also changed in what is now called the ‘New Normal. In the spending whilst focusing more on what can be classified as
immediate future the 'Survival of the most Adaptable' will be the 'essentials'. Similarly due to pay cuts and job losses across
norm rather than the exception. the world, consumer demand will be impacted. Hence, for
SME's and entrepreneurs would need to invest more time
We are all aware that around 70% of the all Sri Lanka businesses
are Small and Medium Enterprises (SME's). The SME sector and money on market research and consumer insights
contributes 52% of the GDP and employees around 45% of in order to understand the gaps in the market and the
the total working population in the Country. The SME sector emerging opportunities.
therefore, is basically the backbone of the Sri Lankan economy. 2. Technology- Use it or Lose it: The importance of
Interestingly entrepreneurs count for only around 2% of our technology in the ‘New Normal’ cannot be overemphasized.
population. In comparison countries like Vietnam, Malaysia Whether it be Working from Home (WFM), conducting
& Thailand have around 20% of their population who are important meetings, completing routine banking
entrepreneurs. History has exemplified to us that whenever transactions, ordering groceries and essentials, promoting
there is a crisis, it is usually the SME sector that is hit the most. your products or services, continuing education or the
The impact of Covid-19 will also be no different. Sri Lanka choice of entertainment, technology has (and will continue)
however, is a resilient nation. As a nation we have been able to play an integral part in our lives. It was also evident that
to overcome adversity as exemplified throughout our history. some companies were better equipped to deal with the
Tough times are not perpetual and the Covid-19 scenario will pandemic due to the investments they have already made
also end for sure. On the positive side it should be noted that in technology. Sadly other companies have been really
there will be new opportunities that derive due to this pandemic struggling. As individuals and companies, the need to adopt
situation. SME's and entrepreneurs need to capitalize on these technology is no longer a choice. In the ‘New Normal’ SME’s
opportunities to their fullest by keeping their eyes and ears at and entrepreneurs need to adapt to technology sooner
ground level. rather than later
The purpose of this article is to outline some of the key lessons
that we have learnt as a result of the pandemic. These are 3. E-Commerce and Online Delivery Models: As we have
realities that Sri Lanka's SME's and entrepreneurs need to seen there has been a huge surge in e-commerce as a
understand and then develop necessary strategies to deal result of the pandemic. It has always been evident that the
with in the ‘New Normal’. The article also outlines a Tool Kit for e-commerce opportunity across the world is both lucrative
SME's and entrepreneurs with practical suggestions on how and scalable considering global internet and mobile
to re-strategize and re-calibrate their businesses if they are to penetration rates. However, until the recent pandemic the
survive and ‘weather the storm’ during tough times. It is a Tool e-commerce adaptation (or the need for it) was not seen
Kit or a high-level checklist for SME’s (and entrepreneurs) with as important from an average citizen’s perspective (at least
the objective of guiding them. It is not a mantra or solution to only a few were actively using e-commerce in their daily
all the problems. Neither should it viewed as a ‘one size fits all lives). This seems to be a common factor across the globe.
approach’. However, the author of this article is confident that SME's and entrepreneurs need to understand this shift in
if some of these (or ideally most) aspects are reviewed and purchase behaviour. In the ‘New Normal’ the e-commerce
implemented by SME’s and entrepreneurs then the chances narrative will be pushed further because people are getting
of them surviving and overcoming the challenges in the ‘New more comfortable the use of technology in their daily lives.
Normal’ will be much greater. Now let’s explore what would be a potential Tool Kit for SME’s
and entrepreneurs to use as they navigate the ‘New Normal’.
What We Learnt The Hard Way
The Tool Kit for the New Normal
1. Changes in Consumer Buying Behaviour and
Lifestyles: The needs and wants of consumers, the buyer 1. A ‘Health Check’ is Mandatory- It is important for SME
behaviour, demand patterns and lifestyles are definitely owners and entrepreneurs understand the implications
going to change in the ‘New Normal’. Today 'Cash is King' of the ‘New Normal’ to their businesses. This includes
as they say. It is also the scarcest aspect especially during implications associated with macro-economic factors,

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