The coronavirus is dragging small businesses into the abyss

The crisis is becoming more and more suffocating. The coronavirus is dragging small businesses into the abyss. The epidemic is leading 460,000 small Italian businesses straight to closure.

The reference is to companies with less than 10 employees and a turnover of under 500,000 euros. This presumable data concerns the end of the year period. Better not think about what might happen next.

This boulder means 80 billion euros in turnover at stake and a million fewer jobs. Lockdown and restrictions are a huge burden. Small business owners no longer have the strength to keep going.

The risk is around the corner. Covid-19 is doing more damage than the great crisis of 2009. Fifteen years ago, micro-enterprises underwent a downsizing. Today, the situation is tending to get even worse. Unfortunately, the engine of the Italian development model is in danger on this path.

The opinion of the accountants

The National Council of Chartered Accountants and the Accounting Experts made a survey among 4,600 Italian professionals.

Unfortunately the data are not comforting. 29% of respondents found that more than half of micro-businesses have halved their turnover. 370,000 companies have a huge hole in their balance sheets.

Another fact that does not make you sleep peacefully is the loss of liquidity of more than 50% in the last year. 415,000 companies do not have the money available as they did a year ago.

What does the government do?

During the period of the pandemic, the government implemented various measures such as a moratorium on mortgages, state guarantees on loans. And 45% of the accountants gave a favorable opinion on this.

The same can be said for aid to work, that is, prohibition of dismissal and use of the redundancy fund in derogation. The suspension of tax and contribution payments for companies was welcomed with enthusiasm.

The efforts of the state to support economic operators and workers during the blockade of markets and businesses must be appreciated, but not enough. The coronavirus is dragging small businesses into the abyss. Therefore we must act as soon as possible.

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