Covid-19 pandemic-Businesses feel they cannot continue to operate
More than 700 businesses in the formal sector responded to the survey, outlining the pandemic’s impact on turnover, trading, workforce, imports and exports, purchases, prices, and business survival.
STATS SA today released the results of a rapid response survey conducted with businesses during the lockdown.
Businesses were asked how the current crisis affected their operations in the two-week period from 30 March to 13 April 2020.
More than 700 businesses in the formal sector responded to the survey, outlining the pandemic’s impact on turnover, trading, workforce, imports and exports, purchases, prices, and business survival.
According to the report, five in six businesses surveyed experienced a drop in turnover over the reference period.
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About 85.4 per cent of businesses surveyed reported turnover below the normal range. Respondents in the construction, real estate and other business services, and transport industries were the most affected by lower than expected turnover.
The report further shows that 42.2% of respondents indicated that they are not confident that they have the financial resources to continue operating through the COVID-19 outbreak.
When asked how long business can continue without turnover, 54% of respondents indicated that they can survive without turnover between 1 to 3 months.
“Half of the businesses surveyed have temporarily closed their doors, the industries reporting the highest percentages of temporary closure or paused trading activity were construction, manufacturing, trade and mining,” Stats SA said in a statement.
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