To improve SME support and development processes in view of the economic crisis due to the COVID-19 pandemic and the significant changes in the lives of billions of people around the world, including in Bulgaria, within the framework of the project RMA “Maritza” is developing an “Investigation on the state and needs of business in Haskovo region after COVID restrictions”. The purpose is to investigate how COVID-19 pandemic has affected business in the Haskovo Region and to identify the needs and measures for the development of business activities in response to the economic and energy crisis. The study investigated the opinion of business in the region regarding specific proposals to improve anti-crisis policies and measures at the national, municipal and regional level.
The findings in result of the investigation on the state and needs of business in Haskovo region after COVID restrictions are grouped as follows:
CONCLUSIONS ON THE IMPACT OF THE COVID-19 PANDEMIC ON ECONOMIC ACTIVITY:
- 77% of the investigated enterprises, indicate there is a deterioration of the economic indicators;
- 64% of the investigated enterprises, indicate there is a decline in turnover;
- 61% of the investigated enterprises experienced a decline in employment;
- The 3 most popular measures to preserve business among the investigated companies are: reducing costs (66%), putting employees on paid or unpaid leave (48%), increasing the prices of manufactured products/services (43%);
- for 1/3 of the investigated enterprises, the limitation/suspension of business activity as a result of the COVID-19 pandemic and the introduced measures and restrictions significantly affected their activity;
- almost half of the investigated enterprises are significantly affected by the missing goods or services;
- almost half of the investigated enterprises are significantly affected by the logistical difficulties in the delivery of products;
- impaired sales affected approximately the same share of less and more severely affected enterprises – slightly over 40%, respectively;
- over 50% of the investigated enterprises are not significantly affected by the loss of employees;
- for 71% of the investigated enterprises, the absence of employees due to illness has a weaker or neutral impact on their activity;
- 75% of the investigated enterprises are not significantly affected by the the sensitive work load for some of the workers;
- almost half of the investigated enterprises are slightly affected by the lack of work force, a little over 1/3 are strongly affected by the lack of work force;
- for 40% of the investigated enterprises, the drop in demand for the offered products/services has a significant impact on their activity, and for 50% of the investigated this factor has a weaker to medium impact;
- for 28% of the investigated companies, the cancellation of orders by customers has a significant impact on their activity, and for 52% of the investigated companies, this factor has a weaker to medium impact;
- Only 13% of the respondents registered an increasing demand for goods or services, and more than half of the respondents indicate that there is no such demand;
- The delay in the execution of assigned orders/contracts is a factor that did not affect the activity of more than half of the respondents;
- 60% of the enterprises indicate that the reduced turnover/income significantly affected their activity;
- 70% of enterprises indicate that the increase in raw materials for production has significantly affected their activity.
CONCLUSIONS ON ANTI-CRISIS MEASURES IN BUSINESS SUPPORT:
- Over ½ of the investigated enterprises are dissatisfied with the state’s business support measures to mitigate the economic consequences of the coronavirus pandemic;
- The three most popular measures are among business in Haskovo are: “Grants for micro- and small enterprises in the amount of BGN 3 to 10 thousand”, “60/40” measure and “Moratorium on loan payments”.
CONCLUSIONS ON NEEDS AND PROPOSALS AFTER COVID-19 RESTRICTIONS:
- 62% of investigated businesses do not think that the COVID-19 pandemic has led to new consumer needs and new business demands;
- The most popular answer regarding customer needs and requirements for business activity, according to the investigated enterprises, is related to a decrease in demand and the purchasing power of the population, with a decrease in the volume of orders and, accordingly, the demand for cheaper goods and services and basic goods at a lower price;
- 69% of the investigated enterprises do not think that they have a need to introduce digital technologies and train staff in this direction
- The top three most popular priorities for investigated businesses after the COVID-19 pandemic are: retaining current markets; reaching new markets and creating a new consumer mix that meets customer needs; increasing investments for digitization;
- The top three most priority areas in which efforts should be directed to overcome the consequences of the COVID-19 pandemic are: state support for stable governance, a stable economy and adequate measures; online services and sales and digital marketing; production and energy efficiency;
- 16 measures that could be implemented at the national level and 6 measures at the municipal level have been identified.
You can read more about the investigation at the following LINK.
