Wednesday, June 3, 2020

80% Of Small & Medium Businesses At Risk of Disappearing in Costa Rica

Micro, small and medium sized companies (SMEs) are hit hard by the covid-19 pandemic. 80% of them are at risk of disappearing within six months. The most affected sectors are commerce and tourism.

The Ministry of Economy, Industry and Commerce prepared a study, based on surveying 2,718 companies, that urged support measures in tax payments, social charges, patents and policies. Many SMEs will not be able to fulfil these obligations anytime this year. They struggle to generate sales and pay fixed expenses.

The study also showed that almost 80% of tourism companies experienced a 75% drop in sales. 50% of SMEs in the commerce and service sector reported such a high drop. Two months from now, less than half of micro-businesses will still be in operation.

A micro-enterprise has between one and five workers. The smaller the business, the hardest it is to get through an unexpected pandemic. This is because the smallest businesses tend to sell directly to customers, something difficult to do with the sanitary measures due to the emergency.

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