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"Corona damage was not fatal to businesses - until the current closure" Israel today

2020-09-24T21:20:48.668Z


| economyBlack business: CofaceBdi survey findings show that companies that have survived so far have made adjustments to the new reality • 58% of companies have not submitted requests for assistance from the government "Businesses still face difficulties from previous closure" Photo:  Oren Ben Hakon The closure for the entire holiday period against the background of the Corona crisis is expected to l


Black business: CofaceBdi survey findings show that companies that have survived so far have made adjustments to the new reality • 58% of companies have not submitted requests for assistance from the government

  • "Businesses still face difficulties from previous closure"

    Photo: 

    Oren Ben Hakon

The closure for the entire holiday period against the background of the Corona crisis is expected to lead to damage to the business activity of companies and businesses in Israel, according to a special survey conducted by the business information company CofaceBdi, which is published here for the first time.

According to estimates by the business information company, even before the closure and as a direct result of the Corona crisis, starting in March, about 5% of businesses operating in Israel were closed. 

Archive photo: GPO

71% of businesses expect damage to their operations, of which 2% of businesses believe that the damage will lead to the collapse and closure of the business.

14% of respondents answered that a serious injury is expected, but not one that will lead to the closure of the business.

55% of managers responded that minor or moderate harm to the business is expected, and only 29% responded that there would be no material impact on operations.

Corona How long?

One of the questions of the wisdom of the masses asked of the principals is how long do they believe the corona crisis will continue.

44% of them responded by the end of 2021, 39% responded by mid-2021, and 7% estimated that the crisis would pass by the end of the current year.

This question is important not as a predictive experience, but as knowing what range of businesses are preparing to tackle. 

The survey was conducted among 235 company executives in Israel following the Corona crisis on the state of business in Israel during the crisis, and was intended to present an up-to-date picture of the extent of the injury and the business' readiness to continue functioning.

The survey also shows that most companies and businesses in Israel (87%) have adapted to the new reality brought by the corona, and that they are adapting to the limitations.

12% of the companies have reduced activity in recent months, and 1% of the respondents claimed that they were forced to close the company due to the situation.

In a similar survey in April, at the height of the Corona crisis, 56% said they had reduced activity and 6% of companies had to close. 

The second wave of corona outbreaks in Israel began in June, and its impact on business activity was felt in July-August.

35% of the managers testified that the activity was harmed during these months, 44% answered that there was no change in the activity, and 21% answered that there was actually an increase in the activity.

These respondents explained this, inter alia, in the closed sky, which led to purchases in Israel and not abroad, and in the increase in customers' investment in their homes, which was reflected in an increase in the landscaping and renovation industries.

The government has announced NIS 80 billion in compensation for businesses in Israel, but the company notes that it seems that only a small part of it has actually reached businesses.

15% of managers who participated in the survey responded that they did not receive any actual assistance even though they applied, 27% did, and the interesting fact is that 58% of businesses did not apply for assistance at all.

Some of the respondents stated that only symbolic and negligible assistance was received in relation to the scope of their business activity. 

Most of the assistance, they said, came from state-guaranteed loans and a grant to repay workers from the hospital, and some respondents indicated that it contributed little. 61% of managers answered that there was no significant change in the banks' conduct during this period compared to the pre-crisis period, and 12% stated that the banks showed understanding and tried to provide proper credit or loans and interest rates on good terms.

"New reality"

58% of managers who responded to the survey claimed that they had difficulty collecting from customers, returning checks or deferring payments: the degree of harm among 9% of businesses was 20% -50%, and in 24% of businesses the degree of harm was 10% -20%.



According to Tehila Yanai, Co-CEO of CofaceBdi, “Companies and businesses in Israel are still facing the difficulties of the previous closure, but they have already made partial or full adjustments to the new reality, including a reduction in manpower.

In the opinion of the companies, before the decision on the full closure, the corona was not supposed to be fatal, but now the decision on a full closure completely changes the picture. "

Source: israelhayom

All news articles on 2020-09-24

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