The results of the study raised a red flag among SMEs, especially that only 6% of small businesses would be able to financially sustain themselves until June 2020 had the government not taken the decision to ease lockdown. The vast majority have not generated any income throughout the lockdown period leaving many businesses extremely concerned about covering costs like rent and payroll.
As such, making payments was a primary concern whereby businesses have already resorted to delaying upcoming payments and almost 1 in 2 intend to defer in the future. However, it’s imperative to highlight that businesses are putting off measures that affect their employees. The overwhelming majority of businesses were praising the government for the efforts that have been exerted to contain the spread of the virus in the country. Moreover, while businesses appreciate the efforts made by the government to protect the country’s overall economy, they were more skeptical about the effectiveness of government decisions when it comes to addressing their own business’s direct challenges. Furthermore, when asked about Defense Order Number 6, 46% of businesses feel that it is more likely to be favoring the financial well-being of employees over the needs of employers.
Nevertheless, the majority of businesses are looking into changing their business models in a way that can help them cut costs or better manage their cashflow. Whereas others are looking into innovation and digitization.