As of February 2021, two-thirds of Russian small and medium-sized enterprises have still not recovered their demand for goods and services.According to reports, about one in ten Russian companies are preparing to close RBK Refer to survey data from the office of the Russian Commercial Ombudsman Boris Titov (Boris Titov).
According to the survey, managers and owners of 5,000 companies from various regions of Russia participated in the survey. As a result, SMEs at the beginning of the year faced the same problems as during the peak of the pandemic and were very pessimistic about their location. In the past year, only slightly more than 20% of respondents did not notice the decline in their demand for goods and services. Approximately 60% of companies’ revenues fell by more than a third, and 45% of them cut wages. 33.1% of turnover continued to decline.
Approximately 60% of survey participants believe that weak demand is the main problem in early 2021, which includes continued restrictions on the coronavirus. Among other serious problems, merchants pointed out the inability to pay rent and property taxes, lack of funds to pay employees’ salaries, insurance premiums and utility bills, and the failure of counterparties to pay for delivered goods and services, and problems with the supply of materials and goods.
During the pandemic, there was no wave of personal or company bankruptcy (1.7%), but now 10.9% of respondents are already considering bankruptcy. Despite attempts, nearly one-third of businessmen (31.8%) still cannot use one or the other state support measures. Most companies simply cannot count on it.
36.7% of entrepreneurs took advantage of tax and credit deferral and debt restructuring opportunities, but these measures were not enough every second. 7.7% said they will never be able to repay their debts and will be forced to close their business.
Facts have proved that the conditions for granting corporate soft loans are very difficult for entrepreneurs-almost one-third (30.7%) of them have not fulfilled their obligation to retain the number of employees. 66.8% of the respondents are in favor of reducing tax burdens and new tax structure adjustments. 46.8% believe that the best measure is not to close the quarantine business.
The press service of the Ministry of Economic Development and Trade said that the information published in the media is “evaluative” and that the ministry uses data from banks that provide soft loans to companies as a guide. They believe that 98% of borrowers meet the conditions for maintaining employment and can count on a loan to be written off.