In April, the revenue of Russian small and medium businesses fell by more than half compared to April 2019. This was announced by the company “Motor” according to the processing of online banks. Statistics showed that from the quarantine holidays most affected fitness centers, clothing stores and shoes and beauty sales have declined by more than 80%. Experts of “MK” to emphasize that the research analysts, with all the drama these figures do not show the real depth of the failure of the domestic small and medium-sized businesses, many businesses which was not destined to recover.
“In April, the turnover of small and medium businesses fell by 54% compared to the same period of 2019. The decline in consumer demand began in March — points lost 10% of its revenue last year”, — the message of the company “Motor”. So, April has become for small businesses a much worse month than March. And what would be the speaker in may?
Interviewed by “MK” experts are convinced: the fall revealed by the experts this is not the bottom and then the situation will continue to deteriorate.
“Motor” estimates only checks and this formal calculation does not show all the depth of a real failure, emphasizes the well-known businessman and public figure Dmitry Potapenko. According to him, in April, involved in the service sector, small and medium business lost 50,70, or 80%, and 100% – simply because officially all closed: fitness centres and beauty salons, shops of clothes and footwear, oral medicine, and optics. “In may, the business will eventually fold into a tube and creep on a cemetery, — predicts the interlocutor of “MK”. — DNA we have not yet achieved. In a period when there is no revenue businesses continue to pay rent, salaries, taxes, loans and everything else. We are expecting a cold summer 2020 and a wave of bankruptcies. Now companies can’t even declare bankruptcy because the courts are closed”.
the Quarantine measures will still have to cancel and all people to let out apartments. Years to sit in isolation, no one can, says Potapenko. “Business is down about 90% of the companies did not fly never. The problem is not in quarantine, and how we these holidays will go, as go it will be nowhere. If someone thinks that he, as if nothing had happened will be able to return to your favorite barbershop, the usual “rocking chair”, lived-in shopping centre close to home, it can deeply wrong. After the abolition of the restrictions it turns out that a significant part of the economy imploded”, says Potapenko.
the Fall of the Russian economy continues and will continue and after they lifted restrictions on the movement, echoed by a colleague, the first Vice – President of “OPORA Russia” Paul Segal. In his opinion, to assess the true scale and depth of the fall of small and medium businesses will be possible not earlier than in July-August, when available, financial statements for the 2nd quarter of 2020.
“the market Bottom is not reached for one simple reason — while there are restrictions on the operation of enterprises and the moratorium on bankruptcy, it is not clear how many firms will be able to actually open after the authorities allowed to work,” he said. The expert also stressed that, first, the population will be much less on purchases (largely because of job loss or wage cuts), and secondly, people will be afraid the first time to go to public places, eat at restaurants and travel. Means — revenue and so the affected branches won’t hold on to what it was before the crisis. This will lead to massive closure of firms and a significant loss of jobs.
“I Want to believe that the economy will recover, although it will probably take a long time, — said the expert. — Out of the pit climbs or enterprise with powerful state or the business that he was able to merge with other companies or effectively organized the work in social networks, promoting the product online.”
Experts believe that now the small businesses need not only interest-free loans to pay salaries, but also the abolition of taxes, as well as the real, irrevocable money that can cover the costs of rent, salaries and utilities. It is also necessary to reject any inspections of businesses for a considerable time (from six months to a year), or to mitigate the penalties.
As revenue dropped small business in April 2020
(annually)
fitness centers – 90%
clothes shops – 88%
Shoe stores 87%
beauty salons – 85%
dental centers – 72%
opticians – 72%
flower shop – 65%
jewelry stores – 52%
shops stationery – 42%
pet stores – 36%.
Source: Avatar
