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3 NEWS 4.2.2021 FROM PAGE 1 Only a third believe that they can survive beyond the next year if the current situation persists. Moreover, the survey shows that more than two thirds of business own- ers (69%) expect that their companies will be needing the support of the government's wage supplement till the end of 2021. Only 6% believe they will only be needing the supplement untll March, as foreseen in the budget. A quarter expect the supplement to be extended till June. 'Businesses need visibility' SME Chamber president Abigail Mamo told BusinessToday that she was quite taken aback but the pessi- mism evident among business owners. "The main problem is that business- es need visibility, they need a clear time line of how things are going to play out so they can plan accordingly," she said. Many businesses have gone into survival mode, seeking only to make it one more day, and abandoning all plans of enlargement, investment or staff take-up. Mamo said that 2021 could end up being much worse for many business- es because of a lack of a resources cushion. "Many business have used up any capital they may have had to keep their doors open these past few months, quickly using up their profits or savings," she said. "The moment government assistance stops, we predict many businesses will fold, not being able to subsist on their own." Mamo said that by now the country has enough experience dealing with COVID and authorities should there- fore be able to map out clearly-defined scenarios and outcomes. "And the government should start identifying sectors which are able to diversify and to provide guidance and assistance to businesses in those sec- tors," she said. "Because if one thing is clearer than ever now, is that our economy cannot remain practically totally reliant on tourism." Mood remains pessimistic The survey also showed that vaccine confidence among small and busi- ness owners is low, with only 13% expecting "a return to normality" be- fore summer as had been augured by Prime Minister Robert Abela in an upbeat end-of-year message. But 38% expect "an improvement" in the second half of the businesses year. Still, nearly half of businesses (49%) are pessimistic expecting COVID-19 to remain prevalent beyond the next year. 65% of those interviewed are cur- rently benefiting from the wage sup- plement. Two thirds of respondents employ less than 10 employees. The survey shows that the biggest financial concern of businesses at the moment are low sales (26%), cash flow problems (17%) and problems in col- lecting payments (15%). Only 10% of businesses saw an in- crease in their sales in 2020 while 43% have seen a decrease of greater than 50%. The few businesses which saw an in- crease in sales mainly attributed this to improvements in their online pres- ence and improved marketing. Only 13% believe business will be 'back to normal' by summer How much longer do you expect your business will be needing the support of the Wage Supplement? How long do you think your business can survive in the current situation? How much longer do you expect your business will be needing the support of the Wage Supplement? Up to 12 months Up to 6 months Up to 3 months 18% 0% 10% 20% 30% 40% 50% 60% 70% 80% 6% 25% 69% STATE OF BUSINESS do your can Longer than 12 months Up to 12 months Up to 6 months Up to 3 months 18% 0% 5% 10% 15% 20% 25% 30% 35% 6% 13% 28% 27% 32% STATE OF BUSINESS 2020 "If one thing is clearer than ever now, is that our economy cannot remain practically totally reliant on tourism." Abigail Mamo Chamber of SMEs president

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