Businesses not confident that they can continue operating for the duration of lockdown
Stats SA surveyed 707 businesses, half of which are closed, about the effects of Covid-19.
According to a survey by Statistics South Africa (Stats SA), many formal sector operators have experienced heavy losses due to the Covid-19 lockdown.
The survey asked 707 businesses how the Covid-19 crisis had affected their operations for the lockdown period.
The statistics were as follows:
- 42.2 percent of businesses were not confident that they have the financial resources to continue operating for the duration of the Covid-19 pandemic.
- 85.4 percent of businesses reported that their turnover had dropped, especially in the construction, real estate and transport industries.
- 54 percent of businesses indicated that they can survive without turnover between one to three months.
- 50.4 percent of businesses expected no change in terms of their workforce size, while 36.8 percent anticipated a decline.
According to the report, half of the businesses that took part in the survey have temporarily closed their doors. Companies in the construction, manufacturing, trade and mining industries having the highest percentages of temporary closure or paused trading activity.
The survey further stated that businesses have implemented a range of measures to manage the impact of Covid-19 on their workforce, including decreasing working hours and laying off staff in the short term.