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Study: Small company managers estimate business figure increase of 1% in 2021
The pandemic impact, brutally felt in the case of small companies, so that the average drop fo small company businesses was 20% in quarter 4, against 10% in the case of big players, according to an Impetum Group survey, which shows that small company managers estimate a business figure increase of only 1% in 2021, while bigger companies see an increase of 5%.
“Companies with businesses under 100,000 euros /year brutally felt the pandemic effects last year, half of managers considering that their own company was affected by Covid 19, and the business drop was in that case 20% in quarter 4, 2020 against Q2, 2020, according to Confidex results, Q4, 2020. Moreover the business figure increase, estimated to be 5 times lower in the case of small companies, in 2021, against 2020, compared to big players (1% vs 5%), the group shows.
Small company managers clearly see the impact of the crisis generated by the pandemic and have an average state of mind indicator lower than those from larger companies: 4.6 versus 4.9. The difference between the drop of Q 4 2020 profit drop against q 2, 2020 is telling in that respect: minus 22% for small companies and 12% for big ones.
Moreover, the profit is expected to drop for smaller players, by 4% in small companies and 12% for large ones, while big companies already estimate an increase this year.
Difficulties in the cash flow area are obvious, half of managers saying they had problems with that. In these conditions, only 10% of small company managers are relaxed or very relaxed about the way in which national economy evolves, while 19% of them are worried or very worried.
Small companies are less optimistic than larger ones about the positive effect of the vaccination campaign on economy and on their own business. Only 66% think it will have positive impact on their business, against 73% in the case of large companies.
At the same time, small companies do not have a solid recovery base in 2021, considering that the main measures adopted in pandemic had in view reducing personnel recruiting and cutting marketing and research expenses as well as of investments, specialists say.
Small company managers estimate an economy recovery between 2and 5 months, and of their own company less than 2 years. As for financial tools needed for recovery, profit re-investment and supplier credit are most often mentioned by small entrepreneurs.
Initiated shirt time after the pandemic debut, Confidex is measuring the Romanian managers confidence in the present economy and intends to create concrete landmarks for business and to support the business environment in making decisions adapted to reality.
The study Confidex Q4 2020 includes answers of over 9,000 company managers with business figure of over 100,000 euros and 180 company managers with business figure under 100,000 euros from top 7 categories of economic sectors contributing to GDP: agriculture, industry and electricity, constructions, trade; HoReCa, transport, distribution, storing, services. The study was answered only y C level CEOs and managers and 75% of big companies have over 1 million euros business figure and 31% have 5 million euros business figure.