Every fifth small business in Ukraine can be closed

Every fifth small business in Ukraine may be closed due to restrictive quarantine measures in response to pandemic coronavirus.

Каждый пятый малый бизнес в Украине может закрыться

This is evidenced by the rapid survey conducted by the European business Association among small and micro-businesses participating in the project Unlimit Ukraine.

22% of respondents admitted they will be forced to close the business, 18% of respondents are considering the option of closing their own business, 78% reported loss of income, and only 4% boasted increased profits of the company.

In addition, 41% of businesses said they plan wage cuts, and only 26% will keep salaries at the same level. With 31% of entrepreneurs will be forced to lay off some employees, and 48% of the business try to save jobs.

“Most entrepreneurs are concerned about the uncertainty of the current situation. In conditions when it is difficult to predict the duration of the quarantine and changes in consumer behavior, calculate any scenario of development of their business almost impossible. The decrease in the volume of orders, failure of the timing of purchases and supplies, paralysis of distribution channels are some of the problems faced by small business. While the income of many companies has significantly decreased, costs remained virtually unchanged (rent, utilities), and added cares on the organization of remote work or transportation employees in the context of movement restrictions,” — said the EBA.

The survey was conducted from 24 to 30 March 2020 among the audience of the project Unlimit Ukraine. It was attended 1811 entrepreneurs — representatives of small and medium-sized businesses.