Apocalypse business! 1 in 2 bosses fear bankruptcy. – EconomyMorning


This is an AFP article relayed by BFM that is shivering. If one in two companies goes bankrupt, one in two employees will quickly be unemployed, at a time when … the State has found nothing better than to significantly lower unemployment benefits with the reform which will come into force on July 1 .

An announced social disaster is on the way.

“According to a CPME survey, 39% of VSEs and SMEs experience late payments, while 60% say they saw a drop of more than half of their turnover in March.
More than one in two SME managers (55%) fear the bankruptcy of their business because of the coronavirus crisis, according to a survey carried out by the Confederation of Small and Medium-Sized Enterprises (CPME) and published on Friday.

Among the 3,416 executives who answered an online questionnaire from April 2 to 16, 60% say they have seen a drop of more than half of their turnover in March. Only 8% did not experience any loss of income.

At the time of the survey, 65% of responding companies were closed, including 49% of the total by administrative decision ”.

You will notice the appalling numbers.

65% of businesses were closed, and only 49% by administrative decision, which means that 16% were closed for lack of customers even if they had the right to be opened.

Late payments.

“The difficulties of companies” are reinforced by the fact that 39% of very small and medium-sized enterprises experience payment delays, “notes the employers’ organization in a press release, which considers the results of its survey” alarming “.

Less than half (48%) of responding companies say they honor all their invoices on time, 36% admit postponing payment for some of them and 16% say they pay all their invoices late.

If half of the companies have cash that allows them to cover between one and three months of operation, more than a third (36%) do not have enough to last a month ”.

83% use of partial unemployment

“On the social side, 83% of responding companies have resorted to partial unemployment and 5% were considering using this device at the time of the survey, which concerns nearly 9 million employees and makes it possible to make pay those who no longer work by the State while waiting for a resumption of activity.

41% of companies plan to require their employees to take paid leave during confinement, the vast majority of which via a company agreement (86%), the others relying on a branch agreement (14% ).

Finally, 51% say they have requested a postponement of tax deadlines and 18% say they plan to do so “soon”.

A dramatic situation.

The repeated confinements are a disaster for our companies which can resist once, sometimes twice, but each new confinement weakens even the most solid and best managed SMEs.

For the moment the situation holds only thanks to the infusions of the State, but when Bercy will stop the policy of whatever the cost, and this policy will have to stop due to lack of financial means for our country, then we will see a terrifying explosion of business failures in our country.

I therefore invite all those who are in fragile sectors, or companies which falter to think and reflect on their employability, train yourself, put several strings to your bow, because in a world which will be difficult, only the best armed , the best trained will come out with flying colors.

Stay tuned.

It is already too late, but all is not lost. Prepare yourselves !