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Analysis: Many entrepreneurs want to support their business, not to send people in unemployment
Many entrepreneurs want to continue their activity, to pay their employees and to extend their services and sales, as the pandemics of coronavirus has placed them in a ‘ unprecedented blockage’ which could lead to bankruptcy, shows an analysis made by a consultancy company.
‘The business of small entrepreneurs were hit the most – by the corona crisis. Beyond the perspective of technical unemployment, the facilities offered by the state to the employees, many business people are determined to continue their activity, to pay their employees and to extend their services and sales. Faced with a situation never met before for the economy, the entrepreneurs use collaboration in the business environment, avoid financial blockage and personnel layoff’ according to a study made by Frames.
Approximately 95% of the Romanian economy is made up of micro-entreprises and small companies with 1-20 employees.
‘For many entrepreneurs, coronavirus has meant more than the social restrictions. They faced a blockage which could lead to bankruptcy’ the analysts say.
‘In an appeal launched on the internet, the entrepreneurs consider that it is not the time to ‘ shut-down’ in the economy, it is not the time to close down their business, for technical unemployment. ‘ It is time to gather the numbers and build collaboration projects’ the entrepreneurs say.
The results of the survey MiniCRM answered by 246 entrepreneurs in the area of small and medium enterprises show that 81% of the companies had, during this period, difficulties with their partners and suppliers. More than 36% of them had serious problems.
According to the data of the consultancy company, the danger of underground economy extension is a significant one.
‘We have signals from different domains that, following the facilities offered by the state through the technical unemployment, there are business people who officially closed down their business to benefit from the facilities, and offer their services in the grey area, non-taxable. This is not the way to survive the crisis, this is not the way to surpass this unprecedented period’ the analysts in Frames say.