Half of Ukrainian businesses may not survive longer quarantine – poll

REUTERS Almost half of Ukrainians entrepreneurs (48%) of micro-, small- and medium-sized businesses surveyed by the Union of Ukrainian Entrepreneurs (UUE) consider it necessary to ease restrictive measures after the end of the coronavirus quarantine set in Ukraine until April 24. At the same time, 33% of respondents believe that it will be better to find an individual approach to a particular territory after April 24, while a mere 1% expect complete quarantine termination, according to a study presented at on UUE&#39;s website on April 2. Entrepreneurs&#39; attitude toward the extension of quarantine in Ukraine until April 24 is mostly negative (42% of business owners), while 30% of respondents remain undecided. Only a quarter of surveyed think it is necessary to extend restrictive measures amid the spread of COVID-19. Almost 60% of business owners say they continue operating under existing restrictions, while 29% shut down their firms (typical for micro-businesses). At the same time, 51% of enterprises are able to survive for only one month, whereas 25% of businesses believe they will be able to operate two or three months into quarantine without going bankrupt. Read alsoPresident Zelensky says he&#39;s sure new cooperation program with IMF will be signed soon According to the survey, 6% of entrepreneurs have fully shut down their businesses. This refers mostly to micro- and small-sized businesses. Only 3% of respondents say their businesses will be able to operate for a longer period under certain conditions (rent-free periods, remote work, and business model review). In addition, a third of business owners (mainly micro-size businesses) note a 90%-100% drop in revenue since the start of quarantine. They have already laid off up to 50% of the staff. Owners of small- and medium-sized businesses say their revenue fell by 25%-50% compared with the period before the quarantine. Moreover, they have already dismissed 10% to 25% of their employees. Revenue losses of large-scale enterprises account for 10%-25% (staff reductions by 25% are expected there until the end of quarantine). Entrepreneurs first expect financial support from the government. Some 29% of entrepreneurs believe that the assistance should be in the form of a temporary tax exemption or a considerable reduction in taxes. Another 9% (mostly small-sized businesses) expect lower rent. Among other expected steps and proposals are the following: compensation for losses to employers and employees, as well as state loans and government orders (5%-6% respectively). The Union of Ukrainian Entrepreneurs emphasizes the need for radical measures in support of businesses: exemption of the most affected sectors (cultural institutions, namely cinemas, etc., and travel agencies) from corporate profit tax; an opportunity for all employers to receive partial assistance for their employees if they reduce time and volume of their work over the pandemic; and a moratorium on all inspections until the end of the year so that entrepreneurs could recover from the crisis rather than be engaged in administering. Read alsoGovernment aid amid quarantine: What businesses and citizens should expect As UNIAN reported earlier, according to a survey by the European Business Association (EBA), most businesses expect support from the National Bank of Ukraine in the form of loan holidays and forex restriction lift pending quarantine. Due to the introduction of strict quarantine measures to counter the coronavirus and the unprecedented reorganization of operations by most businesses, the latter need rapid and relevant parliamentary moves to support their activities, including, in particular, easing tax pressure and removing fines for violating certain tax rules. The Cabinet of Ministers on March 25 decided to extend quarantine set in Ukraine over the spread of the novel COVID-19 coronavirus until April 24 and introduced a state of emergency across the country for a month.

Half of Ukrainian businesses may not survive longer quarantine – poll

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