site.btaKeeping Staff Is Biggest Difficulty to Businesses during Crisis - Survey

May 11 (BTA) - Payment of salaries and social security of employees is the biggest difficulty to businesses during the ongoing crisis, according to the findings of an online survey of the Bulgarian Industrial Association (BIA). The poll was conducted among 584 owners and managers of companies, in May 2-8. The polled companies were mainly micro- and small-sized businesses in retail and services, which have a substantial share in the GDP and which were worst hit by the coronavirus restrictions.

Seventy-three of the respondents were forced to lay off part of the entire of their staff. Fifteen per cent had to cut salaries.

Fifty-seven per cent said that they need up to 20,000 leva per month in liquid resources to cover their costs in the next three months. Every fourth company needs liquid resources of between 20,000 to 50,000 leva per month, and every tenth, more than 100,000 leva per month.

Thirty-four per cent expect to recover their business within a year, 33 per cent, after more than a year, 1.2 per cent think they will be able to recover as soon as the state of emergency is lifted on May 13, and 29 per cent expect to recover within three to six months. A total of 2.4 per cent do not think they will recover at all.

Almost half of the respondents know well about the anti-crisis measures of the government in support of the business, 38 per cent know them partially, and 15 per cent do not know at all.

About six per cent have taken advantage of the 60/40 jobs retention scheme, 8.5 per cent hesitate whether to apply, while 81.5 per cent think that the measure is ineffective.

Fifteen per cent plan to apply for a measure supported by the Bulgarian Development Bank, 31 per cent are still hesitant, and 53 per cent think that none of the measures meets their needs.

Eighty-six per cent support reducing VAT on foods and medicines as an anti-crisis measure, 5.6 per cent are against it, and nine per cent do not know.

Seventy-four per cent think that the temporary measures in support of the business should stay even after the crisis, seven per cent are of the opposite opinion, and the rest cannot decide.

Forty-nine per cent say that the crisis did not lead to increases of their debts to other companies. However, debts increased by up to 100,000 leva for 45 per cent, by between 100,000 and 200,000 leva for 5.5 per cent, and by more than 200,000 leva for 1.7 per cent.

The situation with outstanding obligations to the State is similar. Forty-five per cent say they do not have such obligations, the obligations to the State have increased by up to 50,000 leva for 48 per cent, by between 50,000 and 100,000 leva for 5.5 per cent, and by more than 100,000 leva for 1.4 per cent. RI/ZH
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