What are the new challenges (and opportunities) for SMBs in Portugal?
SMBs play a pivotal role in Portugal’s economy. However, the evolving economic and geopolitical landscape presents challenges and opportunities for businesses seeking to expand their presence and activities in the country. A PR strategy for small businesses is crucial in this endevour for success.
In recent years, Portugal has exhibited promising economic and financial indicators, supported by significant job creation, increased investment, and balanced public administration budgets, alongside a robust commitment to improve the quality and professional standards of public services. Simultaneously, efforts to reduce the levels of both public and private debt have strengthened financial stability, thereby creating a resilient business environment.
However, these developments have taken place against a background of global uncertainty and instability, with far-reaching consequences and implications for the Portuguese market. Successive destabilizing events have rocked the global economy: the COVID-19 pandemic, geopolitical tensions – including the ongoing Russo-Ukranian War- and broader economic instability have disrupted global trade, reduced the flow of investment, and accelerated structural shifts in key industries. As such, SMBs must navigate a market dominated by rising instability, volatility, and competition.
A Highly Competitive Environment: Why PR is Crucial for Small Businesses
The current business landscape is defined by the VUCA(H) framework- volatility, uncertainty, complexity, ambiguity, and hyperconnectivity. It is also increasingly competitive, forcing companies – especially small ones- to seize any advantages to succeed. For SMBs to be successful in this new environment, they need a proactive and adaptive approach to position themselves in the market.
Companies that once relied on conventional business models now have to rethink their strategies and redefine their objectives. They were caught off guard by a scenario that few, if any, had considered in their strategic planning. This situation forced not only companies – both large and small- but also nations, markets, organizations, families, and individuals to suddenly and unexpectedly slow down and rethink their business models to be successful.
This applies not only to operational efficiency and financial sustainability but also to strategic communication and brand positioning- factors that are crucial in an increasingly digital and interconnected world.
What Should be the Communication Priorities for SMBs ?
PR is essential for small businesses to maintain competitiveness and ensure long-term growth, SMBs have to embrace a forward-thinking, multifaceted 360-degree strategy – one that focuses on preparing for future changes and trends. Among these key priorities are the following:
1- Digital Transformation & Operational Agility:
SMBs must integrate digital and automation tools, apps, and software that enhance efficiency and optimize operations and procedures, while also allowing increased flexibility that enables companies to respond rapidly to any market shits.
2- Talent Acquisition & Retention:
The ability to attract and retain highly skilled, competent professionals, is a key factor in staying on top of the competition and a dominant component of success. Any company that seeks a significant competitive edge over its rivals, must invest in employee engagement, professional development, and hybrid work solutions in order to retain its best employees.
3- Strategic Communication & Branding Positioning:
In this new era of increased competitiveness, instability, innovation, and unpredictability, a strong and flexible communication strategy and consistent brand identity are crucial. SMBs must adopt communication strategies that are able not only to deliver the right message to their target audiences but also quickly adapt to ever-changing circumstances.
The Role of Branding:
In today’s business environment, consumers are more demanding than ever: they seek personalized experiences and plans, trust, loyalty, and a deeper connection, not merely functional products or services. A strong branding strategy is the basis for building such a connection.
A solid and well-built branding strategy allows SMBs to achieve several critical objectives such as:
- Building credibility and trust;
- Foster customer loyalty;
- Increase market differentiation;
- Drive business growth.
For SMBs, branding is not simply a useful marketing tool: it is a vital and necessary component of any successful modern business strategy, one that can deeply influence customer perception, investor confidence, and sustainability. Therefor, investing in a communication strategy that is effective in tackling the visibility of its brand, is essential for any SMB that seeks to increase its projection, reputation and reach.
Final Considerations and Thoughts:
As Portugal continues to position itself as a competitive and investment-friendly market SMEs must take an all-inclusive 360º degree approach to their businesses to succeed in the Portuguese market. Such an approach includes not only resilience and adaptability to market changes but also a strategic focus on communication and reputation building.
For any SMEs looking to expand, consolidate, or establish a presence in the Portuguese market, a solid communication and branding strategy will be critical factors in the success of their endeavors in an increasingly crowded and competitive economy.
At Relations Publiques Portugal we provide high-quality services to help companies seeking to establish or expand their presence in Portugal.
Download our E-book “Communication for SMEs” for a more profound reading and insights into strategic positioning.