Companies with a turnover of less than EUR 100,000 per year have felt more brutally the effects of the pandemic last year, half of the managers considering that their own companies are affected by Covid-19, and business decline is, in this case, of 20% in Q4/2020 compared to Q2/2020, according to CONFIDEX Q4 2020 – companies under 100.000 results made public by Impetum Group. Moreover, the increase in turnover, estimated for 2021 as compared to 2020 is by around 5 times smaller in the case of small companies, as compared to major players (1% vs. 5%).

Therefore, managers of small companies perceive more acutely the impact of the crisis generated by the pandemic and have a lower average mood indicator than those in larger companies: 4.6 versus 4.9. The difference in terms of profit decline in Q4/2020 vs. Q2/2020 is enlightening in this regard: minus 22% for small companies and only 12% for large companies. Moreover, the profit is expected to continue to fall for smaller players, by 4% in 2021, while large companies already estimate growth for this year.

“The survey shows us that the size of a company is relevant, especially in the difficult periods of the economy. Therefore, companies with a turnover of less than EUR 100,000 per year have felt much more severely the effects of the pandemic, and the return is perceived as more distant. Moreover, most of them expect a decrease in profit this year, while major players already estimate an advance thereof, says Andrei Cionca, CEO & Co-founder of Impetum Group.

„From our point of view, this is a key moment for small companies, because they have the opportunity of taking a big step towards an entrepreneurial culture based on partnership to get through this crisis”, concluded Andrei Cionca.

Difficulties in the cash flow area are obvious, half of the managers claiming that they had problems with working capital. Under these circumstances, only 10% of the managers of small companies are relaxed or very relaxed in terms of how the national economy evolves, while 19% of them are concerned or very concerned.

Also, the pandemic has revealed the importance of digitalization, more than ever, so that it ranks 5 in the top of priorities, even before access to loans. On the first places, as it was expected, is the increase in sales and keeping jobs, followed by the improvement of the relationship with clients and investments.

However, small entrepreneurs expect a recovery of demand this year and claim that they are rather focused on increasing productivity, to the detriment of cutting costs. Moreover, at least from statements, the pandemic becomes the catalyst for a paradigm shift in business: 64% say that the pandemic will generate enhanced innovation at company level and 71% talk about rethinking the strategy.

Managers of small companies estimate a recovery of the economy in 2 years and 5 months, but of the own company in less than 2 years. As regards the financial instruments necessary for recovery, reinvesting the profit and the supplier’s credit are mentioned the most often by the small entrepreneurs.