During July ISME, the Irish SME Association carried out a survey among its members to assess the true impact of Covid 19 on SMEs in Ireland.
260 SMEs completed the survey.
In summary the findings are as follows:
- 52% of all respondents said some staff were laid off and some were on the wage subsidy scheme – This time last year we would never have predicted that 52% of SMEs would be relying on Government payments for themselves and their staff – What will 2021 bring for our economy and SMEs?
- 69% availed of Wage Subsidy scheme – It is vitally important that all businesses review the conditions around this scheme and the new changes. If your company is relying on this payment ensure that you still qualify.
- 58% have not sought assistance from their bank during the Covid-19 pandemic – Is this a true reflection of the lack of support banks are offering the SME community? This is one area the Government needs to do more on. We need our banks but there is no trust there.
- 52% said their business can continue as a going concern for 9 or months or more – This is a positive sign, however on the flip side 48% said they can only continue up to 9 months, this is very concerning. SMEs need support from the Government and the Banks on an ongoing basis. This crisis is far from over.
- 47% of businesses have debtors totalling over €50k – If you are a business owner this is one area that needs to be addressed, you need to get the money in. Assign one member of staff or a team/rota to focus on Debt collection. Over the past few weeks we have found that SMEs are paying other SMEs. The willingness to pay and work with you is there from other SMEs.
- 31% have Creditors totalling between €10k- €50k – It makes sense if you get the Debtors number down you have Cash to pay your creditors. It won’t solve all your problems but it is a step in the right direction.
Click here to read the full report: ISME COVID-19-Survey-July-2020
Got some questions on how to deal with the aftermath? – Click below!