A recent survey by the Finnish Business Association shows that business improved for small businesses during the spring as coronavirus restrictions eased.
More and more entrepreneurs are saying that their business is in difficulty or at risk of going bankrupt or considering closing down.
Only four percent of those surveyed say they fear their business will have to close. In March, the figure was six percent and in April 2020, nine percent.
"The development is promising. This is due not only to the improved Covid situation and the easing of restrictions, but also to subsidies paid to companies, changes in bankruptcy laws and flexible payment periods. We lobbied for these measures, and fortunately they were implemented," the Executive Director of the Federation Mikael Pentikรคinen stated in a press release on Tuesday.
The situation is most difficult for small companies with less than 50 employees. In this group, 15 percent of entrepreneurs said they were considering closing their business.
According to Pentikรคinen, special attention should be paid to this group and companies should be helped to overcome the crisis, for example through tax and payment deferrals.
"If we want small employers, we need to reduce standards and administrative bureaucracy and liberalize employment contracts. Unfortunately, there are no signs of this. That is why I am afraid that small employers are a gradually disappearing resource," said Pentikรคinen.
Regionally, the situation is most difficult for small businesses in the metropolitan area, where the incidence of coronaviruses is still relatively high.
Just over 1,000 entrepreneurs responded to a survey conducted by Kantar in early May. The margin of error is 3.1 percentage points in both directions.
Source: The Nordic Page