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More than one in 10 Irish SMEs have ceased trading temporarily or permanently as a result of Covid-19, a Central Bank report has found.<\/p>\nMore than one in 10 Irish SMEs have ceased trading temporarily or permanently as a result of Covid-19, a Central Bank report has found.<\/p>\n
The SME Market Report 2020 highlights the challenges faced by firms during the coronavirus pandemic.<\/p>\n
The survey found that 24% of businesses had ceased trading temporarily or permanently in April but this fell to 11% by May 31st as lockdown restrictions eased.<\/p>\n
Firms in the accommodation and food sector recorded the biggest decline in turnover.<\/p>\n
Covid-19 has posed unique challenges to SMEs\u2019 operating environment, the report notes.<\/p>\n
It states that the primary economic impact from the pandemic has been the high level of uncertainty and the closure of many firms.<\/p>\n
It said companies have adjusted to lower turnover through workforce measures such as decreased hours or temporary layoffs.<\/p>\n
Government support for firms and employees includes the Temporary Wage Subsidy Scheme (TWSS) and Pandemic Unemployment Payment (PUP).<\/p>\n
The report also notes the heavy impact on firms\u2019 turnover, with 21% of businesses reporting that turnover is down by 75%, although this differs by sector.<\/p>\n
Around 39% of companies have unpaid invoices due to business lost during the pandemic, amounting to around 20% of 2019 revenue for the typical firm.<\/p>\n
As many as 42% of firms report changing or deferring payments to manage cash flow, increasing to 91% of businesses in the accommodation and food sector.<\/p>\n