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Half the Island's Businesses plan to Furlough Staff in Cash Flow Crisis

Fri, 17 Apr 2020

50% of the Island’s businesses are planning to furlough their staff as the coronavirus shutdown bites.

The Chamber of Commerce have conducted their second survey and found that almost 60% of firms have suffered a revenue decrease by between 90 and 100 per cent.

Cash flow is the biggest concern with most businesses saying they will only survive if they receive the right government support. The Chamber is concerned as 19% of businesses have permanently closed with a further 15% considering it.

The indications are that the lockdown will result in some businesses and even areas of the economy, not returning once restrictions are lifted.

 

Further reading:

The Chamber of Commerce surveyed 431 buinesses from a wide range of sectors, including SMEs and larger employers.

Details about the next Covid-19 Business Impact Tracker survey will be posted HERE

Highlights included:

• 82% of the respondents expect their business to survive the current situation provided that they receive the right Government support.
• Cash flow continues to be a concern with 94% of respondents reporting a decrease in revenue since the crisis hit. For 59% of respondents revenue has decreased by 90 to 100%.
• 70% of respondents reported that they have had to temporarily close their business
• 42% of businesses expect the current situation to impact their business in three months’ time.

Here are some of the other headlines from the 8th to 15th April survey:

Businesses furloughing employees or reducing workforce

• 50% of businesses are planning to furlough employees over the coming week.   
• 26% reported that they are planning to permanently reduce their workforce over the coming week.

Awareness of government support schemes

• The Salary Support Scheme, MERA and Business Support Scheme have the most awareness and 68% of those that took part in the survey have requested funding. Chamber’s next Impact Tracker survey (16th to 22nd April) will seek to capture how many businesses are not eligible to receive support from the schemes.
• Only 14% of scheme applicants are in receipt of funding. With the application for the Salary Support Scheme opening this week Chamber hopes to see the figure of those applying for funding to rise significantly. Getting businesses the lifeline that they need soon will be key in determining how well our economy will be able to recover from these unprecedented circumstances.

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