Small and medium sized businesses (SMB) have been called the engine for our economy given their sheer numbers (more than 98% in Canada). It has also been observed that this constituency will be the leading edge of the economic recovery in large part due to their size and an ability to be more nimble and responsive to opportunities that a larger organization may not be able to react to. This sounds good in theory, but is it reflected in reality?

For the last 16 months, I’ve had the privilege of speaking directly with group of small business owners from varying industries across Canada. However, they should not be seen as representative of the “average” SMB. What potentially makes them unique is their conviction that strategic investments in technology have enabled their business success. As such, their experiences and insights have been enlightening.

The following (in no particular order) are key issues facing this group:

• Access to credit;
• Government stimulus programs which incent the wrong behaviours; and
• Stimulus programs which are more trouble to access than they are worth.

But while they acknowledge the challenging circumstances in which they are currently operating, almost all of them stated that the first 3 months of 2009 were incredibly healthy, in some cases their best ever quarter. It is through that lens that I give you this list of their suggestions (again, in random order) on how SMBs can best weather the current recession:

• Focus on becoming more efficient across the entire value chain, not simply making short term, knee-jerk cuts and changes;
• Manage costs and wrap services around your products where possible in order to extend your reach into the customer;
• Continue making investments in core competencies – now is not the time to let your quality slide; and
• Innovation = Survival.

So does this reflect what other smaller and mid-sized businesses are experiencing? Please share with us your thoughts, your current situation and most importanly your best practices on how to weather -- and thrive -- in this economic crisis.