By KYIV. Nov 1 (Interfax-Ukraine) – Almost a third – 30% – of the European Business Association (EBA) member companies from small and medium-sized enterprises (SMEs) plan to enter the international market, 29% are already operating in the markets of other countries, the association said on Monday following the results of the survey.
"Geographical expansion may be especially relevant for entrepreneurs against the background of exhaustion of financial reserves and significant business losses. A quarter of our surveyed entrepreneurs report having no financial reserves. Also, 11% have enough financial reserves for a month, 28% – for several months, 17% – for six months. Another 14% have reserves for a year or more, while in July there were only 6% of them," the EBA said.
"The entrepreneurs’ assessment of their business losses has slightly improved compared to July, but the level of losses is still significant. Thus, 33% of SMEs estimate their losses in the amount of up to $10,000, 23% – in the range of $10,000-50,000, another 15% – in the range of $50,000-100,000, and 14% – more than $100,000. The absence of losses is reported by 10% of entrepreneurs, which is twice as much as in July," the report says.
"Currently, 39% of companies are fully operational, while in July there were 28% of such companies. The number of non-working companies has decreased – from 16% in July to the current 11%. Another 50% of companies work partially, with some restrictions. Particularly, 30% were forced to limit the geography of activities, 19% worked only online, and 16% closed some outlets/branches. The fact that they suspended, but have already resumed work is reported by 26% of SMEs," the association stated.
"Despite the difficult conditions, most companies, particularly 83%, use only working capital to finance their business. Another 7% use bank loans, including 4% – the 5-7-9% credit program. Another 4% use commercial lending. Among the state benefits, the most popular among SMEs is the option of paying a single tax of 2%, it has already been used by 14% of entrepreneurs, another 6% use other tax benefits, and 2% – compensation for the employment of IDPs," it said.
"The number of SMEs paying salaries to employees in full has increased from 34% in July to 43% in October, and 4% do it in advance or with bonuses. At the same time, 18% of companies were forced to reduce wages, and 9% – to send staff or part of it on unpaid leave. The number of companies that dismiss employees slightly decreased – from 18% to 13%," the EBA said.
