Pandemic puts foot on economy: how much SME turnover has fallen

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The pandemic started in Romania in March, slowly but surely. As expected, after a period of chaos and disorientation, the effects began to be felt. And SMEs are fully aware of this.

August was a bad month for small and medium-sized businesses. The turnover of SMEs fell by almost 14%, and this was obviously caused by the coronavirus pandemic. The decrease is related to the previous month, shows a barometer made by SmartBill.

Practically, with this decrease, the Romanian SMEs end the summer season with the first month of decrease after the economic recovery, in the middle of May. Thus, compared to July, the evolution of the turnover was a negative one, of -13.85%, and the annual one maintained its trend, registering -3.76%.

Pandemic, negative effects on the balance sheet of SMEs

The authors of the barometer claim that August is the third of 2020 with negative figures, along with January and April. The values ​​are, however, very close to those recorded in August 2019, when the decrease was 12 percent.

“The last month of summer is marked by lower consumption for most industries, being recognized more as a holiday period. However, the situation generated by the pandemic has left its mark on the HoReCa sector, which registers a difference of -32% compared to August 2019. Instead, the good weather has allowed an increasing number of cultural events to take place in open spaces, thus, it contributed to the evolution of the entertainment industry and cultural-recreational activities, of + 41% compared to July 2020 ”, says Radu Hasan, Co-Founder & CEO of SmartBill.

There is also good news, but it doesn’t matter much in this blackboard. The only sector that recorded positive figures in August is that of administrative and support services – + 2%. The largest decreases were identified by the Barometer in the case of agriculture and fisheries (-46%), health and social assistance (-21%) and transport (-19%).

At the regional level, the most important decreases were registered in the South-West, of over -30%, while the rest of Romania remained between -10% and -20%. Although it can be considered negative for August, the Barometer shows, at the same time, that the potential of SMEs in Romania is huge, regardless of the challenges that entrepreneurs face.

“Most of us have imagined what it would be like to have a business of their own. Others even had one or more ideas. A few may have taken some steps in this direction, but it is certain that just as many gave up before it really began, became discouraged, and let the idea remain an idea. However, the first steps in entrepreneurship are not that difficult. What matters most is to start somewhere and, above all, to find out everything you can find out about what it means to have a business: what are the steps you will have to go through, what to pay attention to, how to avoid mistakes from the beginning of the road ”, says Mircea Căpăţînă – Co-Founder & Marketing Director of SmartBill.

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