Small and Medium-sized Enterprises (SMEs) and social and solidarity economy entities (EESS) are fundamental pillars of the Portuguese economy and society. They play a crucial role in creating jobs, producing wealth, regional development and innovation, but also in supporting the social integration of fragile people and communities . They complement each other in the response necessary to maintain balance between economic performance, progress, social peace and the defense of fundamental human rights.
However, the economic sector and social sector face significant competitiveness challenges that require attention and continuous support, fundamental for their growth and positive impact on communities, amplified by socioeconomic dynamics and the regulatory context. Above all, when the situation they share may be marked by social or political uncertainty, and major transformations that need to be monitored so that they can continue to prosper in an increasingly competitive and uncertain global market.
One of the biggest challenges faced by SMEs and EESS is access to finance. The ability to obtain financing is essential to expand operations, secure resources and invest in technology, new production models, research and knowledge. To mitigate this problem, Banco Montepio, recognized as the “Social Economy Bank†in Portugal, has worked in close collaboration with these entities, offering financial solutions adapted to their needs, such as microcredit programs credit, public or mutual credit guarantees, solutions to support treasury management and specific investment funds.
Also regulatory complexity – namely, related to the integration of Environmental, Social and Governance (ESG) factors in management and corporate activities – presents itself as a growing challenge for SMEs and EESSdiverting resources, but ensuring the opportunity to evolve in a cycle with the expectations of its employees stakeholders in compliance with legal requirements, so the adoption of corporate social responsibility policies, reduction of carbon footprints and promotion of fair work practices are opportunities that must be known and worked on by these organizations.
The competitiveness and sustainability of SMEs and EEESS in Portugal depend on an integrated approach that combines access to training programs, technological innovation, regulatory simplification and strategic collaboration. EESSs need to find ways to differentiate themselves and demonstrate their positive social impact and the unique value they bring to the communities they serve. To do this, they also need evaluation frameworks and data collection methods to demonstrate their results and effectiveness, based on technical knowledge and a culture of continuous learning and improvement.
Innovation is a driver of competitiveness. And SMEs and EESS in Portugal also face barriers to innovation, including limited resources, lack of digital skills and, sometimes, resistance to change. Digital transformation is, therefore, essential to modernize operations, improve efficiency and reach new markets, new audiences, new ways of streamlining interaction with business partners and/or communities in need .
In the same way, human capital is one of the most valuable assets of any organization, so the lack of adequate skills can be a barrier to competitiveness. In this sense, we have promoted executive training and training programs to help these organizations adopt new technologies and innovative practices, namely, as co-founders of Nova SBE VOICE Leadership, a fundamental program to promote innovation and knowledge transfer, but also specific training and training in management, which allows the leaders of these organizations to be equipped with the necessary skills to be competitive: economically sustainable, financially sustainable, socially fair and environmentally responsible.
This article was developed within the scope of the Nova SBE VOICE Leadership initiative
