The COVID-19 effect in mexican SMEs

Abstract

This article presents a literature review on how the COVID-19 pandemic changed the way of managing risks in the supply chains of Mexican SMEs. Research was carried out in the most important scientific research databases. The spread of the pandemic in 2020 has affected public health and the world´s companies, including micro, small and medium enterprises (SMEs). The impact on business activities is tremendous, and stringent government policy and response to curb the disease are necessary. SMEs are more vulnerable to internal and external events and depend on the capacity of their owner-manager to run the businesses. The Coronavirus is already considered a factor that requires attention on the behalf of Mexican companies. It is now difficult to imagine a world that isn't permanently changed, and organizations need to adapt. The normality of 2019 is not going to return, and Mexico has a fragile economy and a low-budget health system. The SME supply chains contain many links. At the moment of being struck by a crisis such as the present one, we are experiencing that disruption is likely to occur at the weakest link. Supply chain resilience is the adaptive capacity to prepare for unexpected events, respond to disruption, and recover. A Mexican SME that wishes to be resilient must know all the risks that can affect it. An opportunity for SMEs due to the coronavirus refers to the possibility for continuous innovation through the development of new or better products, processes, and business models. Resilience and risk thinking are life-saving phenomena for Mexican SME´s.