Analysis exhibits a discount within the variety of small companies with a drop in income
This is what the 14th Impact Survey of the Coronavirus Pandemic on Small Businesses points out, carried out by Sebrae
Small business owners have shown resilience over the last few years to face the various impacts brought by the Covid-19 pandemic. Data presented by the 14th Impact Survey of the Coronavirus Pandemic on Small Businesses, carried out by Sebrae in partnership with Fundação Getúlio Vargas (FGV), reveal that the proportion of companies with a drop in revenue reached the lowest level in the historical series, which began in March 2019. 2020. On average, 59% of companies still suffer from reduced revenue, and among individual microentrepreneurs (MEI) this percentage reaches 62%, against 53% among micro and small companies (MPE).
The survey, carried out between April 25 and May 2, 2022, also shows that losses average 23%. Since the middle of last year, Sebrae has observed a movement to recover losses. However, the impacts of the pandemic weigh more on MEI’s accounts than on those of MSEs. While individual micro-entrepreneurs still face losses of 29%, micro and small companies suffer from a 14% reduction in revenue.
When it comes to debt, 65% of small business owners have their cash in hand, but MSEs are more indebted than MEIs. There are 73% of micro and small companies with outstanding debts against 60% of MEI with bills to pay. Despite this, the income of individual microentrepreneurs is more compromised in this regard. On average, 59% of small businesses have more than a third of their monthly costs affected by debt, and among MEI this percentage is 67%. In the case of MSEs, 48% are in the same situation.
The survey also shows that the search for credit varies among small businesses, despite remaining practically stable over the last few months. MEIs have resorted to financing less and, when they do, are the ones that have the most refusals from financial institutions. While 42% of individual microentrepreneurs sought loans, 61% of micro and small companies requested financial assistance from third parties. Among the MSEs, 70% obtained the credit against 41% of the MEIs.
Despite the reopening of physical establishments, online sales should continue to be on the rise and hybrid service tends to be a reality for small businesses. The survey shows that MEIs adhered more to the use of digital tools to sell, with 72% using social networks, applications or the internet. In the case of MSEs, this rate is 70%.
In addition to the challenges brought by the Covid-19 pandemic, there are other concerns in the entrepreneur’s mind, such as high inflation and interest rates that impact business costs. Asked about the future of business, on average, 41% of small business owners responded that they still have a lot of difficulties maintaining the business. MEIs consider themselves more distressed (44%), while 37% of MSEs assess that their state of mind is still one of concern for the future.