On the way to a little more normalcy: The number of companies that see their existence threatened is decreasing.
According to a study, companies in Germany are again looking to the future with more confidence. With the recovery from the Corona crisis, the fear of bankruptcies is disappearing, according to a company survey by the Nuremberg Institute for Labor Market and Occupational Research (IAB).
Accordingly, the proportion of businesses that see their existence threatened halved from 8 percent in May to 4 percent in July. The optimism is also evident when hiring new staff.
The research institute of the Federal Employment Agency has been questioning 1,500 to 2,000 private-sector companies about the consequences of the pandemic since August 2020. Almost a third now stated that they were not affected by the Corona crisis. Another 10 percent felt that they were mostly positively affected. “There are significantly more companies that rate their situation positively than in the last few months,” reported IAB Director Bernd Fitzenberger.
In the hospitality industry, the proportion of businesses that reported existential fears has fallen by 30 percentage points since May to 7 percent. In July, only 14 percent of the industry said they were completely or partially closed (May: 85 percent). In the manufacturing sector, 3 percent of companies recently saw their existence threatened, 6 percentage points less than two months earlier.
However, worries about livelihoods were still much more widespread among small businesses than among large ones. 5 percent of the companies with between one and nine employees reported such fears and only 1 percent of the companies with over 250 employees. Large companies therefore tended to have sufficient liquidity reserves.
Jane Stock is a technology author, who has written for 24 Hours World. She writes about the latest in technology news and trends, and is always on the lookout for new and innovative ways to improve his audience’s experience.
