A third of small businesses have lost more than 50% of income

Треть малых предпринимателей потеряли более 50% доходов

A third of respondents, namely 33% reported a 50-75% loss of revenues. Also, companies have reported a significant increase in accounts receivable. Another 44% received up to 50% loss of income, and 7% of enterprises are considering the option of closure. And only 14% there have been no changes in the work or even increased income. These are the results of a survey conducted by the European Business Association among the members of the project Unlimit Ukraine, uniting micro and small entrepreneurs.

To reach dekorativnih the pace of development, 38% of businesses need one year, 25% have two or more years, 19% – about six months. Only 3% reported that the level of development their business has not changed. To help restore companies can such support measures from the state reducing the tax burden on the wage Fund, providing cheaper credit resources and the abolition of penalties for tax offences until the end of the year.

The majority of companies, and that 48% were able to maintain staff salaries unchanged, while 29% were forced to reduce the wage, and 19 percent send employees on unpaid leave. To retain staff of the company in the same line are 59% of enterprises. Another 33% of companies were affected by the reduction, and 6% even now looking for new employees.

Business is ready to get back to work – 54% of companies will resume their offline activities during may-April. At the same time, 60% of entrepreneurs are considering a full or partial transition to the remote mode. In addition to the flexibility, it is also a way to cut costs on office rent.

“If you compare similar surveys conducted by the Association among representatives of large and small business, we see that the margin of safety small businesses, unfortunately, turned out to be quite limited. The economic consequences of a pandemic struck first and foremost by financial results of companies that are much worse than big business. Also a small business has much less opportunity to save employees and remuneration to decoratinga level. At the same time, we see that small business is more flexible. If large companies are considering only a partial transition to online, the SME entrepreneurs are willing to total digitalization, permitting activity.

The survey was conducted in the period from 15 to 21 may 2020. It was attended by 111 participants – representatives of small and medium business.