The corona crisis has substantially depressed the net sales of small and medium-sized enterprises (SMEs), and the situation is expected to deteriorate even more during April. Most companies have sufficient solvency for a number of months, but 10% of companies will not survive over the next month.
State-owned investment company Tesi is charting the impacts of the corona pandemic on Finnish SMEs with a survey based on collaboration amongst a broad spectrum of experts. The first stage of the questionnaire was conducted 3rd – 14th April 2020. Altogether 801 companies, with annual net sales of €2m – €200m and personnel of 5 – 520 people, took part in this stage. The aim is to form a broad-based and neutral overview of SMEs’ current situation from a range of perspectives: external factors, internal procedures, and the impact of intervention to support SMEs.
The sectors covered by the review were selected based on their importance to Finland’s GDP. The sectors chosen for the first stage focus on: industry; wholesale & retail trade; professional, scientific and technical activities; information & communications; and, partly, hospitality & catering. The review will be supplemented within a couple of weeks to also include: construction; transport & warehousing; and administrative & auxiliary services. The number of respondents to the review will then rise to 1,600 companies. The survey will be repeated each month.
Main results of first stage of questionnaire survey:
“It’s important to think about the overall impact of the various effects of the corona pandemic on Finland’s GDP, and to judge exactly when and how hard the economic impacts will hit different sectors. The hospitality & catering sector has suffered severe and sudden impacts, while in Finnish industry, for example, the consequences could be long-lasting and changes in supply chains could have a far-reaching effect on the functionality of ecosystems. Tesi aims to provide comprehensive help to both Finnish companies and public authorities, by offering financial instruments and by providing timely market data. A positive aspect of the crisis is the extremely pleasing opportunity to observe the wide-ranging collaboration between academia, private companies and government ministries. Everyone has a genuine desire to work in close collaboration to find the best solutions,” says Tesi’s Chief Digital Officer Henri Hakamo.
About the survey:
The survey commissioned by Tesi was prepared and compiled by Helsinki GSE, Finland’s Ministry of Economic Affairs and Employment, Professor Vihriälä’s working group, Business Finland, Finnvera, and other experts from both the public and the private sectors. The aim is to provide a real-time and sector-specific overview of Finland’s economy, thus making up-to-date information available to policymakers to target correctly-timed measures for mitigating Corona impacts.
The first-round review (n=801) was conducted by phone interviews arranged by market research company Taloustutkimus during the period 3–14 April 2020. The sectors were selected based on their impact on Finland’s GDP (VAT, employment) and its growth (growth in VAT and work productivity). The range selected for companies’ annual net sales was €2 million – €200 million and for number of employees 5 – 250. A sufficiently representative sample was ensured for each sector in terms of company size and geographical distribution.
The review will be supplemented within a couple of weeks to also include: construction; transport & warehousing; and administrative & auxiliary services. The number of respondents to the review will then rise to 1,600 companies. The survey will be repeated each month.
The results of the survey (only in Finnish)
Henri Hakamo, Chief Digital Officer, Tesi
email@example.com, +358 40 050 2721
Tesi (Finnish Industry Investment Ltd) is a state-owned investment company that wants to raise Finland to the front ranks of renewing economic growth by investing in funds and directly in companies. We invest profitably and responsibly, hand-in-hand with co-investors, to create the world’s new success stories. Our investments under management total 1.2 billion euros. Ambition for ownership and success www.tesi.fi | www.dtg.tesi.fi | @TesiFII