52% of surveyed SME-owners say their businesses will recover and become larger than before COVID-19 crisis
The Center for Entrepreneurship and New Ventures (FGVCenn) at Fundação Getulio Vargas’ Sao Paulo School of Business Administration (FGV EAESP) has just released the results of a survey called “COVID-19’s Impact on Small Businesses.” According to 52% of surveyed entrepreneurs, their businesses will recover and become larger than before the COVID-19 crisis.
The survey also reveals that COVID-19 opened up new business opportunities to 49% of interviewees, and 84% said they have changed their business plan. Asked to state their main problems, 24% of entrepreneurs said difficulties paying running costs, 19% said nonpayment or delayed payments by clients, and 10% said problems paying employees.
Furthermore, 61% of entrepreneurs said that if the current situation persists, they will only have enough money to keep going for up to another six months. Despite the adverse situation, 54% of interviewees have voluntarily offered their products or services to support other activities, NGOs or the government, while 48% have volunteered for charities/NGOs or supported other people who are not their relatives or friends.
Regarding the emotions triggered during the pandemic, 84% of entrepreneurs said that the work involved has challenged them and made them grow as people, while 65% said they look at each new day with optimism.
According to FGVcenn’s research coordinator, Edgard Barki, crises bring about not just threats but also opportunities. “Crises have threatening aspects, they make it harder to sell products and businesses have to reinvent themselves, but this need to do things differently can be a new opportunity and lead to successful new niches.”