Ahead of "crisis winter": SMEs between fear and composure
A considerable proportion of Swiss SMEs have a gloomy outlook for the coming winter, although at the same time there is also a large proportion that is calmly facing the challenges. While the companies are robust in principle, some are struggling with shrinking profits and fear insolvency. This is shown by a representative survey conducted by the YouGov institute on behalf of the B2B platform operator Visable.
Between October 11 and 18, 207 decision-makers in Swiss SMEs were surveyed on behalf of the B2B platform operator Visable about a possible upcoming "crisis winter". According to the responses, the current economic and geopolitical situation is clouding expectations for the coming winter among a large number of Swiss SMEs. 37 percent of the companies rate the risk of restrictions in business activity due to economic difficulties as high or rather high. In contrast, however, there are also hopes that the effects of the Ukraine war will not be so dramatic. 21 percent assess the risk of operational restrictions as rather low and 38 percent as low. "Swiss SMEs are looking forward to the coming winter with mixed feelings. The current challenges are taken seriously, but not overdramatized," says Peter F. Schmid, CEO of Visable.
Energy costs and raw material prices as the biggest problem areas
At 36 percent, rising energy costs pose the greatest risk for companies. Rising prices for raw materials and intermediate products are feared by 30 percent of SME decision-makers. Only slightly less weight is given to supply chain problems (28%). And closely followed by inflation is cited as a risk (26%). Corona is still a serious risk factor. As many as 23 percent of SMBs anticipate staff absences this winter due to illness and quarantine. Skilled labor shortages and a slump in demand were both cited by 22 percent of respondents. War sanctions (7%) and a lack of digitization (5%) were seen as the lowest risks.
Companies are not remaining idle in the face of the current challenges. When asked about the measures planned to get through a winter of crisis as well as possible, energy-saving measures are clearly in first place (29%). And interestingly, hiring new employees follows in second place with 18 percent. After all, 15 percent are considering suspending planned investments. And 11 percent mention staff reductions or wage cuts. Short-time work is hardly relevant (7%).
Shrinking profits and also threat of insolvency
It is already becoming apparent that the outbreak of the Ukraine war will have a negative impact on the annual profits of some companies. 22 percent of SMEs said that profits in 2022 will fall somewhat compared with the previous year. And 6 percent even expect profits to fall sharply. The outlook for next year is similar. One in five companies (19%) fear somewhat declining profits in 2023. Sharply declining profits are again cited by 6 percent of respondents. For some companies, the winter could threaten their existence. 15 percent of SMEs estimate the risk of insolvency this winter as high or rather high. In principle, however, the companies are robustly positioned. For 82 percent, the risk of insolvency is rather low or low.
Electricity price cap against crisis winter?
Asked about the measures they would like to see from policymakers in the coming winter, 23 percent of SME decision-makers are calling for an electricity price cap. And just as many would like to see nuclear power plants run for longer. With similar dominance is the call for tax cuts (22%) and financial aid programs (20%). A faster expansion of renewable energies is called for by 21 percent of respondents.
Source: Visible
