Half of businesses believe the restrictions should be weakened
According to the results of an express survey conducted by the European Business Association, 50% of the respondents support the easing of restrictive measures in the country. Meanwhile, 23% believe that the existing restrictions should remain the same.
To understand the dynamics of business moods, the EBA conducts periodic surveys among its member companies regarding their reaction to the current situation in the country and the actions taken by the authorities. Overall, 50% of respondents consider the measures justified, given the situation, another 36% consider them tough, 7% – mild and 7% believe that they should be tougher.
As stated by EBA member companies, currently, 83% of companies work remotely. In order to stay afloat during this difficult period, 20% were forced to reduce salaries, 15% made their employees take paid leave, and 4% reduced their staff. At the same time, every fourth company is looking for new opportunities for development in this situation, and another 8% felt no impact of restrictive measures on their business.
We see that the business is quickly adapting to new realities and doing everything to support the employees. However, the results of the survey show that some companies are already running out of their strength reserves, and they may not be able to withstand a longer quarantine. We hope that the authorities will hear and support both companies and their employees who anticipate the easing of restrictions to resume their work promptly.
As part of the survey, we also asked respondents as individuals whether they are ready to resume the work. It turns out that the majority, namely 59%, are ready to resume the work following all the rules of personal protection. At the same time, 41% would still like to work remotely, even if this would lead to a decrease in income.
Based on the business opinion, the top 3 solutions needed in the current situation are improving the system of virus diagnostics, providing the country with sufficient tests; establishing clear quarantine rules and monitoring their implementation; reducing the tax burden on wages.
The entrepreneurs would also appreciate the compensation of the part of the salary for employees that were forced to take leave; resumption of the regular public transport traffic; abolishment of the deposit income tax for both individuals and legal entities; cancelation of the situation of emergency.
As of April 7, companies have informed about the following financial impact of restrictive measures on their businesses. Most companies, namely 70% of those surveyed, reported up to 50% of revenue losses, and 18% reported 50-75% of revenue losses. Income increases are reported by 10%, with another 2% considering closing their business.
The survey was conducted from March 31 to April 7, 2020. A total of 122 EBA members took part in the survey.