The number of non-working representatives of small and medium-sized businesses decreased from 42% to 26% over the month, the European Business Association (EBA) reported with reference to the second wave of a survey conducted from April 14 to April 20 among 162 individual entrepreneurs participating in the Unlimit Ukraine project.
The EBA said in a release 17% of small businesses surveyed have returned to work after a temporary shutdown, and another 23% are preparing to resume it.
“The number of businesses that operate in full has also increased from 13% to 20%. Meanwhile, there are remaining restrictions such as the reduced geography of activities, the transition to online, and the closure of some branches/outlets. Companies cannot resume full-fledged work mainly due to lack of orders, reduced customer activity, and reduction of projects,” the EBA said.
“Small entrepreneurs’ assessment of their own financial stability has improved somewhat. Currently, 40% report that their financial reserves will be enough for several months, previously 32%. Another 15% have reserves for one month. At the same time, 12% say they will be able to last six months, and 6% – a year or more. The number of businesses that have already exhausted their financial reserves has not changed and now stands at 26% of the total number of respondents,” the report says.
“The situation with the payment of salaries to employees has hardly changed over the past month. Wages are currently paid in full by 25% of companies, with 5% continuing to make additional or advance payments. However, 27% were forced to cut pay, and 22% did not have the resources to pay salaries, so 15% sent employees on unpaid leave, and 9% were forced to partially or completely lay off staff,” it reads.
“Meanwhile, small businesses mostly continue to support defenders and provide humanitarian aid. The vast majority of respondents, namely 61% provide finances, 24% – products, 23% – services, 12% – means of protection/defense, and 7% – medicines. However, 18% of SME representatives have already exhausted their resources to help,” according to the document.
“The vast majority of SME entrepreneurs, namely 71% did not transport their office or production anywhere, only 11% relocated to the west of Ukraine, and 4% – abroad. Some entrepreneurs also reported a relocation to the central regions of Ukraine,” the association stated.
“Also, 40% of businesses estimate their war-induced losses at up to $ 10,000, 28% consider them to be within the range of $ 10,000-50,000, 15% – more than $ 100,000. About 6% of SMEs report no losses. Meanwhile, 20% of the surveyed businesses report losses of property or assets directly resulting from hostilities. The estimated total amount of damage caused to entrepreneurs participating in our survey is about $ 2 million,” the EBA said.