Most Businesses In Budapest See Bleak Outlook

  • 21 Mar 2020 6:18 AM
  • Hungary Matters
Most Businesses In Budapest See Bleak Outlook
Fully 93% of businesses in the capital believe their outlook is bleak, according to a flash survey conducted by the Budapest Chamber of Industry and Commerce (BKIK) on the impact of the coronavirus crisis.

The survey covered 1,895 Budapest-based companies, of which 83% are microbusinesses, 15% SMEs and 1% large companies.

BKIK noted that one-third of the companies have their employees working from home, 19% have sent them on unpaid leave and 12% on paid leave.

The survey shows the ratio of home office work increases in proportion to the size of the company. Fully 80% of large companies have shifted to home-office work, while only 51% of small businesses have done so. Altogether 55% of medium-sized companies have home-office arrangements in place.

Only one-fifth of the companies had a contingency plan for such situations, but 34% of the remaining ones are now drawing up an emergency plan, and 15% are considering doing so.

BKIK said 60% of the companies have experienced a decline in orders and 40% a drop in the number of guests, customers, consumers and clients.

In response to a question about what kind of help they would find useful under the circumstances, 40% of the companies said they would support the establishment of a fund to provide preferential credit or guarantees to companies to help them cope with temporary liquidity problems on condition that they maintain their headcount.

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