Feedback for Post Covid-19 & SMEs - What support will be needed?

However, in the more recent surveys – in particular in countries where lockdowns are being lifted – SME sentiment has become slightly more optimistic. A US Chamber survey released on 3 June, shows that 79% of small businesses are fully or partially open.10 Many (82%) small businesses remain concerned about the impact of COVID-19, but the share of businesses being ‘very concerned’ dropped from 53% in early May to 43% in early June. 56% feel comfortable with their companies cash flow situation (compared to 48% in May), and 47% expect an increase in revenues in 2021. In another United States survey by Verizon Business, 68% of small businesses indicate they expect to be able to recoup their COVID-19 related losses.11 In a survey by American Express in Australia, 80% of small business owners have high hopes to survive the crisis, although 52% fear that sales will not rebounce enough to survive in the longer term.12 A KPMG survey in Australia, finds that 79% of companies feel ‘confident’ their organisation is able to rebound financially.13 However, a third recent survey (the biannual Pushka ‘Canary in the coal mine report’14) gives a gloomier impression on entrepreneurs sentiments and expectations with only 225 of SMEs being confident in their business in May 2020 as compared to 40% a year before. In Germany, the ifo Business Climate Index (not specified by size) strongly improved in June.15 In the Netherlands, the sentiment of businesses on the continuity of their business improved in May compared to April.16 In Korea, in June the Bank of Korea business confidence indicator improved for the second month in a row, with the sentiment for small and medium sized companies improving more than for larger firms.17 A June survey in the United Kingdom showed that over 71% of small businesses indicate their firm has the opportunity to emerge better and stronger after COVID-19.18 Surveys on teleworking, digitalisation and new business practice Some surveys also provide data on the uptake of teleworking and digital sales channels by respondents. A 4 May survey by the Canadian Federation of Independent Business (CIBC) finds that of the 26% of business owners who do have online operations, 30% have seen an increase in sales and 25% say they have remained the same compared to pre-COVID-19 levels.19 A survey by the US Chamber of Commerce that came out on 5 May showed an acceleration in digitalisation trends. Over April-May the share of small businesses transitioning some or all of their employees to teleworking increased from 12% to 20%, and small businesses that had begun moving the retail aspect of their business to digital means increased from 10% to 17%.20 A recent survey in Japan indicated that there is a gap in the prevalence of teleworking by the size of the companies (48 percent for large corporations versus 10-20 percent by the SMEs). The reasons cited include a lack of infrastructure and worker skills to use digital tools.21 A further survey in Japan supports these conclusions that the larger firm the higher the prevalence of teleworking; in SMEs of 5-29 employees, teleworking in June stood at 8% of firms (Okubo, 2020[13]). A survey in Germany from early May, shows that whereas at the outset of the crisis 88% of German SMEs operated with mandatory in-person work, 81% expect that the pandemic will make their companies more flexible and one third of SMEs esteems digitalisation has grown in importance due to the pandemic (McKinsey, 2020[14]). A survey on Europe suggested that only 56 percent of all companies with 50 or fewer employees provided remote access to email, applications, and documents for their employees, compared with 93 percent of all companies with more than 250 employees (McKinsey, 2020[15]). According to a survey among 86 000 small businesses in the United States by (Facebook & Small Business Roundtable, 2020[16]), 51% of businesses increased online interactions with their clients to adapt to the crisis. Also, 36% of self-employed personal businesses that use online tools report that they are conducting all their sales online, and 35% of businesses that have changed operations have expanded the use of digital payments. A survey in Hungary released on 23 June, indicates that where 24% of SMEs intend to return to their pre-COVID business method, 41% would rather continue with the business model developed during the pandemic.22 According to a June survey of Canadian small businesses23, 44% of these are facing a variety of technology and tech support challenges, such as in the areas of digital marketing (19%), ecommerce (13%) and their other online offerings, including their website(17%). 32% of small businesses reported needing assistance with safety measures, including workplace and customer safety, followed by finances (28%), marketing support (19%), refocusing their business (18%), community