site.btaAlpha Research Surveys COVID-19 Crisis Impact on Bulgarian Business

May 4 (BTA) - The Alpha Research polling agency conducted the first complex parallel survey among businesses and citizens between April 13-23 on the impact of the coronavirus epidemic.

Below are the findings of the second part of the poll which focuses on business. The survey polled 500 economic entities from across almost all economic sectors in industry and the services. The sample was chosen on the basis of official statistics about the structure of companies in Bulgaria by numbers and sectors. Sixty-one of the interviews were with company owners, 25 per cent with general managers, and 13 per cent with other managerial staff, from big and medium-sized companies.

COVID-19 has a marked negative impact on economic activity. Nearly 80 per cent of businesses, mostly micro- and small-sized companies, suffer direct or indirect losses. Twenty-one per cent say that the crisis did not affect their activity too much. Of these, 3.5 per cent say that the crisis has led to increased demand for their products, while a little under two per cent say they have opted for other activities and are coping. Nearly seven per cent of the respondents in the poll report declines of less than 20 per cent. However, 56.4 per cent say they have experienced declines of between 20 and 50 per cent, or 50 to 90 per cent cent. Fifteen per cent report 100 per cent drops in proceeds.

Despite the shock of the crisis, most businesses tried to adapt, make organizational changes or temporarily restructure to keep their staff and remain on standby for a pending restart. Nearly 23 per cent of the companies kept the same organization of their work from before the onset of the crisis. These being mainly medium- or big-sized companies, nearly 48 per cent of employees continued to work full time at their place of work, according to the first part of the poll. In one fifth of the companies (21.7 per cent) part or all employees started working from home, accounting for eight per cent of employees. Nearly 19 per cent of the companies had their employees take paid leaves, 17 per cent, unpaid leaves. Shortened working hours were introduced in 17.9 per cent of the companies.

The fact that a portion of the economy was left working and certain anti-crisis measures were implemented allowed more than three quarters of businesses not to lay off staff so far. The share of companies which were forced to do so edged up to 21 per cent in mid-April, from 17 per cent in the end of March. More than half of these companies laid off some of their staff, and 9.1 per cent, their entire workforce.

The first anti-crisis measures implemented by the government are moderately or highly approved by business owners and managers. Ninety-two per cent support and implement the measures, are certain in the their need and adhere to them. Fifty-five per cent fully support the option for working from home or with flexible working hours.

More polarized is the attitude to the 60/40 jobs retention measure which is approved by 59 per cent and criticized by 41 per cent. The criticism is mainly in respect of an even greater financial commitment by the State.

Two general types of suggestions were made by the respondents - keeping the 60/40 measure even after the end of the state of emergency because the recovery will take time, and complementing the measures with more economic incentives to cope with the expected economic decline.

The assessment of the business regarding the overall measures (medical, economic, social) are positive too. Nearly two thirds (62 per cent) give a positive mark to the executive power. The negative marks are twice less, 34 per cent, of which 21 per cent rather negative, and 12 per cent totally negative.

Nearly 88 per cent think that they will be able to overcome the crisis. Nearly 13 per cent say they will go bankrupt while 69.5 per cent expect to recover within one year.

Most businesses are already planning or even made steps for reorganization or innovations. Twenty-seven per cent saw a chance in the crisis to streamline the working processes which will be kept in the future. Use of electronic services increased for 22 per cent while 17 per cent will continue to use flexible working hours. Every fifth company plans launching new products, and every seventh, new services. Fourteen per cent plan to cooperate with other companies for better efficiency. Every tenth company says it plans to shift part of the work to home offices. RI/ZH
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