(4 minutes read)
· The surveyed businesses indicated that a range of measures
have been taken to cope with the impact of the pandemic on their
workforce, including decreasing working hours (28.3% of respondents)
and laying off staff in the short term (19.6% of respondents)
· Over 42 % of respondents indicated that they are not
confident that they have the financial resources to continue operating
through the Covid-19 outbreak.
· Significantly, 54% of respondents indicated that they can
survive without turnover between one to three months. Almost half of
responding businesses have temporarily closed their doors
The Covid-19 is impacting South African businesses, according to
StatsSA. The survey had a sample of 707 businesses in the formal
sector and was conducted in the two-week period from 30 March to 13
April 2020. The survey had queries on impact on turnover, trading,
workforce, imports and exports, purchases, prices, and business
survival.
50.4% of respondents to the survey expected no change in the
workforce, when asked about the impact of the pandemic on the
employment, while 36.8% expected their workforce size to decline.
The surveyed businesses indicated that a range of measures have been
taken to cope with the impact of the pandemic on their workforce,
including decreasing working hours (28.3% of respondents) and laying
off staff in the short term (19.6% of respondents). 25% of the
respondents said that they did not take any measures as yet in the
case of employees. Over 42 % of respondents indicated that they are
not confident that they have the financial resources to continue
operating through the Covid-19 outbreak. Significantly, 54% of
respondents indicated that they can survive without turnover between
one to three months. Almost half of responding businesses have
temporarily pulled the shutters. Most of the industries reporting
temporary closure or paused trading activity were construction,
manufacturing, trade and mining.
There was also an impact on the turnover of the companies during the
period 30 March – 13 April 202. Over 85% of respondents surveyed
reported decline in turnover. When asked to compare the fallout of the
pandemic vis a vis the financial meltdown of 2008, over 65% of the
respondents felt that the impact would be severe for the present ,
particularly in sectors like construction, real estate and other
business services, and transport industries.
