Like other companies, the PAWI Group set up a so-called pandemic team right at the beginning of the Covid 19 crisis, adopted rules of conduct to protect employees, customers and business partners, and implemented measures to safeguard production. At the same time, reports were heard from all over the world that there was a shortage of equipment for protective clothing, mouth and face protection. Out of desperation and for lack of an adequate solution, doctors were already making their own face shields. This gave the packaging manufacturer's innovation team the idea of developing, manufacturing and distributing a face mask themselves. Resourceful minds immediately got to work on this topic, since the technical prerequisites for their manufacture are available within the PAWI Group.

Supplement to a conventional mouthguard

The disposable face mask consists of cardboard and a viewing window made of PET window film and can therefore be disposed of in the simplest way after use via normal waste separation, just like a normal folding box. Thanks to the universal plug-in closure on the headgear, the mask can be closed to fit everyone, depending on the head circumference. The face mask does not protect against infection, but it is the ideal complement to a conventional mouthguard and additionally protects users from direct contact with so-called droplets when other people in the immediate vicinity sneeze or cough. Hospitals in the region have shown great interest in the disposable face shield. However, PAWI sees the use of the face shield not only in hospitals, but also in retirement and nursing homes, in retail or supermarkets, in fact anywhere where people come into contact and need additional protection. This can also be in private environments.

Disposable face shield not suitable for medical use

The disposable face shield, as manufactured by PAWI, is not CE approved and thus not officially approved for medical care facilities and hospitals. However, in crisis situations such as the current pandemic, such face protection is certainly a welcome means of providing additional protection to particularly exposed individuals. Production of the disposable face masks has started and they will be available shortly.

Source: PAWI Packaging Ltd.

Discussions about the consequences of the lockdown for Swiss companies are increasing. Various economic data point to a recession after the Corona crisis. The CFO survey regularly conducted by Deloitte takes the same line.

CFO survey shows clearly negative expectations...

While the key data from the survey conducted in March has indicated a slowdown for nearly two years, it has now plummeted outright. The results are the lowest ever in the more than ten-year history of the CFO survey: 97 percent of those surveyed after mid-March expect the economy to turn negative over the next 12 months - a good two-fifths (41%) of them even expect strong negative momentum. A good two-thirds (67%) see a negative financial development coming to their company, and only just 15 percent a positive one. 93 percent see the future of their company as less rosy than it was three months ago. A good three-quarters (78%) anticipate a decline in sales and more than half (52%) percent expect staff numbers to fall within the year. The difference between these results and those from the second half of the month - after the school closures and the declaration of the extraordinary situation - is striking, but the data for all 90 CFOs surveyed are also sharply down.

... but somewhat less pessimistic than in Germany

Looking at the survey of CFOs from Germany, also conducted in March, it becomes apparent that there is somewhat less pessimism in Switzerland: Two-thirds of all Swiss CFOs surveyed are more negative about the future of their company than they were three months ago, compared with three-quarters in Germany. Swiss CFOs also tend to view their own economy as more robust than other major economies. While 89 percent expect a recession in Switzerland within the next two years, the figure for the US and UK is 96 percent and for the eurozone 93 percent.

Record high uncertainty

The record high level of uncertainty among CFOs is also evident across the entire survey period. 90 percent of them rate uncertainty as high, up from 67 percent six months ago. When it comes to ranking the risks to their own company, a newcomer has landed squarely and unchallenged in the top spot: COVID-19. The second-ranked risk of weak demand is also directly related to the Corona crisis. The CFOs also rate their supply chain as a greater risk than six months ago.

"Our figures back up the historical comparisons used by many experts: The economic slump is global, comprehensive and came very quickly. It will also leave deep cuts for Swiss companies and greatly accelerate change processes. At present, however, at least for Switzerland, there are indications of a rapid recovery and a countermovement as soon as the lockdown is lifted in the near future. The healthy state budget and the companies, which are constantly forced by the strong franc to optimize their operations, have been caught in a position of strength by the Corona crisis. However, the development is still uncertain and depends heavily on the duration of the lockdown," says Michael Grampp, chief economist at Deloitte Switzerland. He also believes that job losses in Switzerland will probably be limited for the time being thanks to the generous measures for short-time work.

Another result of the CFO survey: a digitization push is expected

Swiss CFOs are actively tackling the crisis: in 91 percent of companies, measures are underway to curb weak growth, with cost savings and revenue generation being cited most frequently. Sales of many companies are at risk in the crisis or simply collapse away, while at the same time a large cost base remains. The speed of the collapse demands a quick response. Companies have to define which activities they stop immediately, which back-office activities they still need or which long-term commitments they selectively downsize.

The vast majority of companies have now taken measures and are working in crisis mode in order to remain in business. "Now it is a matter of quickly working out scenarios for one's own company and regularly adapting them again to the economic, geopolitical and epidemiological conditions. Measures to ensure the company's continued existence, such as government support and liquidity management, must be closely examined. However, the really successful companies are already looking at the post-crisis period: they are examining possible acquisitions or sales of parts of the company and are implementing the necessary internal changes in a targeted manner. I expect a major digitization push as a result of the Corona crisis," explains Alessandro Miolo, Managing Partner Audit & Assurance and responsible for the CFO program at Deloitte.

Source: Deloitte

Covid-19 is forcing many companies to offer their services from the home office. One challenge that has emerged is the legally valid signing of contracts: For eSigning to be possible, it first requires certification. This can usually only be obtained by visiting a certification authority in person, as the identity of the applicant must be verified. Due to the closure of physical certification bodies as well as the necessary reduction of travel as well as personal contacts, this is now more difficult. As a result, many companies are no longer able to sign contracts in a legally valid manner.

Legally valid contract signing from home office

This business-critical factor is addressed by the video identification solution from Intrum and QuoVadis Remedy: Thanks to the convenient identification of an applicant and the subsequent presence of a qualified, electronic signature, with which all contracts can subsequently be simply signed digitally, it is possible for companies to be fully operational from the home office even in the current crisis situation.

Intrum has been offering video identification since May 2016 and complies with the FINMA guidelines described in Circular 2016/7. More than 50 customers from the financial sector are already using this service. Intrum performs several thousand video identifications per month. Thanks to the amendment of the VZertES, based on the Federal Council decision of 01.04.2020, this service is now open for all industries as a digital alternative to physical identification for six months.

Service in operation from April 6

For video identification, you need an ID (CH passport, CH ID or an ID recognized for entry into Switzerland) and a device with a camera (cell phone, tablet, laptop). The identification process takes about five minutes. According to QuoVadis, the opening hours are Mon - Sat from 07:00 - 22:00. The service is expected to go into operation on April 6.

Thomas Hutter, Managing Director of Intrum AG, sees video identification as an important business support in the current crisis situation. "Our simple and proven solution offers all Swiss companies the possibility to sign contracts quickly and without much effort. This ensures the continuation of their services." Michael Sieber, Head of Sales & Marketing at QuoVadis: "eSigning was already on the wish list of many companies before the Corona pandemic. From "nice-to-have" it has now become "must-have". With the simplified identification requirements, users can now get their legally valid digital signature very quickly and easily."

And this is how video identification works (Explainer video)

As part of a global initiative, PwC Switzerland is tracking the response of CFOs to the COVID-19 outbreak by conducting a bi-weekly survey with CFOs of the largest Swiss companies across a range of industries. This survey was conducted during the week of March 23 and is based on responses from CFOs of large, small and medium-sized Swiss companies.

Great concern from Swiss CFOs

Although COVID-19 has not yet peaked, three-quarters of respondents in Switzerland say the outbreak has potential for significant impact on their business. Only a minority of respondents perceive the impact of the pandemic as limited to certain regions of their company or as an isolated challenge without a major impact on the business. A significant 75 percent of Swiss CFOs expect the impact of COVID-19 to negatively affect their revenues and/or profits. Fifteen percent of respondents say they have difficulty assessing the impact of COVID-19 on revenues. This is due to new information and findings on COVID-19 being released on a daily basis.

Cost containment and investment freezes

The main measures already taken by Swiss companies in response to COVID-19 were cited as cost containment measures, postponement or cancellation of planned investments, and changes to financing plans.

In response to the question concerning the outlook for April, CFOs in Switzerland cited staff changes due to low demand (temporary leave) and the separation of employees (redundancies) as the most likely negative events. As companies focus on protecting their liquidity, they are currently postponing various types of investments, with information technology, operations, labor and facilities being the most frequently cited. With the full economic impact of COVID-19 still difficult to gauge, only 20 percent of companies are considering changes to their supply chain and have only implemented short-term measures. In the long term, companies are expected to increasingly readjust their supply chain.

Normalization in less than one month

Also asked was the "cardinal question": How long would it take to recover if the outbreak ended immediately? Here, too, Swiss CFOs are significantly more optimistic than their global counterparts: 65 percent say that their business would return to normal in less than a month, and a further 25 percent assume a period of one to three months. Global opinions are somewhat more pessimistic - the absolute majority believe that their business would return to normal in one to three months.

Source: PwC

Already 6.5 percent of SMEs have laid off employees - more are planned, and there could even be a wave of layoffs. And a good 34 percent of SMEs feel they receive too little support from the federal government. This is shown in a survey by GRYPS offer portal on the economic impact of the Corona crisis on small and medium-sized enterprises in Switzerland, which was conducted between March 30 and April 2, 2020. In the survey, 270 SMEs participated online.

Loans do not solve problems enough

The problems revealed in the survey are not directly attributable to cases of illness: Indeed, so far there have been few confirmed Corona cases in the participating companies. However, companies will have to prepare themselves for how they will deal with the situation in such cases. Acute, on the other hand, are the consequences of officially imposed business closures on small businesses. "The self-employed in particular are dissatisfied with the limited support and feel their existence is threatened. This is shown by the many personal comments of the SMEs in the survey. Even interest-free loans do not solve the problem for many, as these have to be paid back again," says Gaby Stäheli, co-CEO of GRYPS Offertenportal.

Other results in the survey

• Layoffs: Around 6.5 percent have laid off employees, and over 8 percent plan to do so in the near future
• Short-time working: A good 43 percent have already introduced short-time working, and over 8 percent are planning to do so in the near future.
• Hiring freeze: Around 54 percent have introduced a hiring freeze, with just under 3 percent planning to do so in the near future
• Sales declines: 30 percent of SMEs suffered more than 75 percent sales declines in the Corona month of March.
• Rent reduction: Only just 10 percent have agreed to defer or reduce the rent for business premises, but 18.5 percent still plan to negotiate with their landlord.

The survey shows: Overall, the impact of the coronavirus on the Swiss SME landscape is clearly visible. And some statements from survey participants leave nothing to be desired in terms of clarity: "It's not okay at all, what
is being blindly destroyed here." Or there is also talk of a "state-imposed death blow" for entire companies.

As if the loss of sales due to the Corona lockdown were not enough: now, a poorer willingness to pay on the part of larger companies is also putting SMEs in a tight spot. One of the primary goals of the Federal Council's emergency aid was to restore and maintain the liquidity of SMEs. The government quickly and unbureaucratically put together a package of measures worth billions of euros and put it into effect on March 25. Since then, SMEs in distress have been provided with urgently needed liquidity in the form of bridging loans. The formula is: "The banks pay, the federal government guarantees."

Do not further exacerbate liquidity bottlenecks

Many small and medium-sized companies are in a liquidity bottleneck due to the Corona crisis. They are therefore relieved and grateful for this help and solidarity. All the more, the behavior of some large industrial and commercial enterprises is incomprehensible. In the last few days, some SMEs have been informed that they will have to wait longer - 60 days instead of 30 days - for their money for delivered goods and products. The large companies argue with the crisis and speak of a currently valid practice in the industry.

Maintain willingness to pay

Business associations, above all Swissmechanic, the employers' association for SMEs in the MEM sector, regret this approach and very much hope that this behavior will not continue. After all, once the ball starts rolling, it is once again the SMEs that will suffer the most from the poorer payment morale and see their liquidity once again at risk. "Small suppliers are unfortunately often interchangeable. Thus, the means for SMEs to defend themselves against this behavior are limited," says Swissmechanic President Roland Goethe in response to our inquiry. He therefore appeals to the solidarity of large companies with all their suppliers. Large companies and SMEs must work together in these difficult times. Simply arbitrarily extending payment deadlines is therefore not expedient, he said. "If there really are problems, solutions can usually be found in a direct discussion," recommends Roland Goethe.

Source: Swissmechanic

The Swiss version of the GCA Cybersecurity Toolkits complements the new edition of the Cybersecurity quick tests for SMEs. The internationally proven toolkit has now been translated into German and is intended to make an important contribution to the implementation of the National Strategy for the Protection of Switzerland against Cyber Risks (NCS). The Toolkit is a platform that provides SMEs with free online tools and practical instructions for working safely on the Internet.

Tools for security on the Internet

With the GCA Cybersecurity Toolkit for SMEs and the Cybersecurity Quick Test for SMEs, companies have tools at their disposal to better assess their own cyber risk and detect security gaps. Under the leadership of SATW, the quick test has now been revised in terms of user-friendliness and better aligned with the needs of SMEs. As a next step, the Cybersecurity Toolkit for SMEs now offers companies practical solution measures. By implementing the controls and best practices outlined in the toolkit, they can protect themselves from more than 85% of the most common attacks. "In combination, the Quick Test and the Toolkit make an important contribution to the implementation of the National Strategy for the Protection of Switzerland against Cyber Risks (NCS)" says Florian Schütz, Delegate of the Swiss Confederation for Cybersecurity, "in order to achieve the goal of a cyber resilient Switzerland, it is important that we also adapt internationally proven solutions such as the GCA Cybersecurity Toolkit for Switzerland."

Preventive contribution to the fight against cybercrime

For GCA, the partnership with ICTswitzerland and SATW is also an important opportunity to expand its global presence. Klara Jordan, GCA Executive Director for the European Union and Africa explains, "the launch of the Swiss version of the toolkit marks the first milestone in the partnership between GCA, ICTswitzerland and SATW and is an important step in building cyber risk resilience and awareness across the SME sector. Thanks to this collaboration, we are one step closer to our goal of helping SMEs worldwide protect themselves against the ever-growing risks from cyberspace." Nicola Staub, cybercrime prosecutor and GCA ambassador adds, "As the initiator of the partnership, I am thrilled with the constructive collaboration and rapid outcome. The toolkit makes a significant contribution to the preventive fight against cybercrime in SMEs."

Source: ICTswitzerland

The Internet service provider (ISP) iWay was also able to grow last year. The company increased its sales in fiscal year 2019 by 12 percent year-on-year to CHF 29.2 million from CHF 26.1 million. In its most important business segment, Internet Access, revenues grew by 6 percent from 15.8 to 16.7 million Swiss francs. iWay also continued to gain market share in Internet telephony. Sales of VoIP (Voice over IP) services, for example, amounted to CHF 7.2 million, representing growth of 25 percent. The partners again made a significant contribution to the success of the full-service provider in 2019. Thanks to them, the share of indirect sales increased from 54 to 56 percent of total sales. The continued strong performance is also reflected in the creation of new jobs, as the workforce grew from 44 to 48 employees in 2019. For the current year, iWay expects a further increase in sales of around 10 percent. New positions are also to be created again in 2020, particularly in the marketing and support areas. At the same time as the results of the past financial year, iWay announced its brand-new, ultra-fast offering available throughout Switzerland with up to 10 gigabits per second at its media orientation, which was held by video conference for the first time as a result of the Corona crisis.

iWay hardly feels any negative effects from Corona

Managing Director Matthias Oswald is also confident for the current business year. A negative Corona impact is not noticeable, he explained at the media conference. On the contrary, he said, several new orders and requests for higher bandwidths were directly attributable to the corona-induced trend toward home office work. Some customers may have noticed that mobile networks are reaching their limits and that LAN connections via fiber optic connections are therefore running more stably, according to one assumption. What could be noticed in the past few days was increased bandwidth consumption during the day, but there were also peaks in the evening. "Users can't go to the movies and therefore consume more Netflix," explains Matthias Cramer, head of engineering at iWay. However, there is no reason to switch off Netflix; so far, the capacities are sufficient without any problems.

Good business prospects for 2020

"For 2020, we expect growth of around 10 percent," continues Matthias Oswald. As a result of the further development of fiber optics, we can assume that growth in the FTTH (fiber to the home) segment will be greater than for DSL connections. The fiber boom is likely to continue thanks to higher transmission speeds, the forthcoming "10 G" offering, and the continuing strong demand for lower-cost VoIP products and modular product bundles. Overall, the IT industry will benefit from the Corona Impact, he said. However, according to Matthias Cramer, the problem at the moment is hardware: due to production downtimes in Asia, there are currently delivery bottlenecks for routers and other devices.

More information

The Corona crisis had little impact on the number of new companies founded in the first quarter of 2020. The still high number of new companies gives confidence for the future - courageous doers are now in demand. Nevertheless, a decline in the number of start-ups is to be expected in the second quarter of 2020, which will be due to the global consequences of the coronavirus. Start-ups often take several weeks, which is why there are currently few meaningful facts available, according to the IFJ Institut für Jungunternehmen.

February 2020: the month with the highest number of start-ups in a multi-year comparison

The analysis of the first quarter of 2020 by the IFJ Institut für Jungunternehmen shows that January 2020 recorded a high number of start-ups with 3,701. With a difference of -1.8%, the peak value of January 2019 was only just missed. February 2020 registered a record multi-year monthly comparison with 3,939 new startups. This represents a year-over-year increase of 1.8%. The month of March is marked by the global impact of the coronavirus and the lockdown in numerous countries, including Switzerland since March 17, 2020. On the side of company formations, however, it can be noted that despite the adverse circumstances, 3,718 new companies were founded in Switzerland. This corresponds to a decrease of -6.1% compared to the previous year 2019 with 3,958 new company formations.

Start-ups by industry

In terms of company formations by sector, the IFJ analysis shows strong increases in the first quarter of 2020 in the architecture & engineering and marketing & communications sectors (+14% each), consulting (+7%) and private & business services (+4%). More new firms were also founded in the Craft Trades and Culture & Nonprofit sectors (+1% each). Fewer companies were founded in the first three months of 2020, particularly in the high-tech (-26%), wholesale (-15%), real estate (-13%), IT & ICT (-10%) and mobility (-10%) sectors.

Courageous doers interviewed

The lockdown, which was decided by the Federal Council on March 16, 2020, is hitting the hairdressing industry hard. This also applies to Daniela Luchetti and Severina Brägger, who started their own business six months ago with Coiffeur Blum GmbH in St. Gallen. They have been working together as a team for over 15 years and do their best to ensure that every customer leaves the salon satisfied and with a smile.

How does the current situation affect your business?
Of course, we also have to make our contribution to the current situation and accordingly had to close our salon due to the issued BAG regulations from 17.03.2020 for our customers. This means that almost all of our income has been lost from one day to the next, while our cost base remains almost unchanged. On the revenue side, we are left only with the online sale of individual hair products. On the cost side, we cannot declare short-time work, as we are both self-employed and have no salaried employees. What remains for us is to apply for compensation of max. 196 francs per day each.

How do you ensure funding?
These are the three different measures we have taken:

1. Since we opened our doors 6 months ago and business has been positive from the beginning, we were able to build up certain reserves.
2. On the cost side, we are trying to keep running costs to a minimum and delay payment of current invoices due to the new guidelines.
3. New revenue streams: Via Instagram, we advertise to our customers which hair products they can use to care for themselves at home. This allows us to generate new sources of income through the online sale of hair products and at least a little mitigate the shortfall. In addition, we also use this way to deliver small tokens of appreciation such as our famous banana bread to customers. This also allows us to strengthen and intensify individual customer relationships.

How satisfied are you with the measures that the Federal Council has decided to take?
For us, this depends heavily on the ongoing request regarding daily allowances from the AHV compensation fund. If we receive these at the maximum amount of 196 francs per person per day, this helps us enormously. Of course, we will never be able to cover all our losses with this amount, but we will be able to ensure our basic salary and the minimum required liquidity in the company. With this help, we are also not forced to make use of the loans offered by the federal government. If these funds are disbursed quickly as planned, we are very happy about this support and thus also very satisfied with the measures taken by the federal government.

Source: IFJ Institute for Young Enterprises

A study by the ZHAW School of Management shows that as of the end of March 2020, more than 50% of small and medium-sized enterprises in Switzerland expect to run into financial difficulties in the coming months. The situation is serious. Accordingly, on March 26, 2020, the Federal Council issued the COVID-19 Solidarity Guarantee Ordinance. This enables affected companies to access liquidity quickly and without complications. The corresponding COVID-19 bridging loans are popular, and several tens of thousands of applications have already been received. However, companies are well advised to carefully examine the legal and economic (long-term) consequences of these loans.

COVID-19 bridging loans can lead to over-indebtedness

COVID-19 credits can mean not only the rescue, but the bankruptcy of a company. Art. 725 CO stipulates that the board of directors must notify the judge without delay in the event of proven balance sheet overindebtedness. Failure to do so may result in liability for damages due to bankruptcy delay. While COVID-19 loans of less than 0.5 million Swiss francs are off-balance sheet until March 31, 2022, loans of more than 0.5 million Swiss francs must be fully recognized as debt. This may result in loans taken out - together with the value adjustments and provisions that may be necessary under COVID-19 - leading to over-indebtedness in the short to medium term.

Companies that have already financed their business activities through loans in the past risk bankruptcy by taking out the COVID-19 loan. This can lead not only to the demise of the company, but also to personal liability of the board of directors. Careful liquidity planning and balance sheet analysis are thus imperative to prevent bankruptcy in the long term despite the bridging loan. There are indications that the Federal Council has recognized this problem and will amend the ordinance accordingly.

COVID 19 bridging loans restrict entrepreneurial freedom of action

Although the granting of COVID-19 loans is quick and straightforward, it is subject to conditions. For example, the Ordinance stipulates that during the term of the credit, the distribution of dividends and bonuses, the granting of asset loans or the refinancing of personal or shareholder loans is excluded. Repayment of shareholder loans (including those accounted for as current accounts) is thus not permitted during the term of the loan. Likewise, the forwarding of the loan amount to a person abroad associated with the applying company is not permitted. Anyone who does not comply with this can be prosecuted.

Before taking out a loan: Check the situation and alternatives  

The COVID 19 credit, designed as a short-term liquidity injection, can have serious long-term consequences. Accordingly, companies are well advised to consider the following at their leisure:

• Status and strategy analysis: How is my company positioned? Do we need to adjust our corporate strategy to survive the crisis? What liquidity do we need in the coming months? Can we use alternative measures in our favor, such as a legal standstill under debt collection law, tax deferrals, deferral of social security contributions or tax optimization? Are there any long-term prospects for restructuring at all?
• Over-indebtedness situation: Based on the findings of the status and strategy analysis, can we repay the outstanding loans in the long term? Are there any liability risks for the Board of Directors, e.g. as a result of bankruptcy delay, non-payment of AHV contributions or other breaches of duty?
• Evaluation of probate: If the liquidity planning suggests a default in the next few months, it is imperative that the instrument of debt-restructuring moratorium is also examined. During a moratorium, debt collection proceedings can neither be initiated nor continued and the debtor can take reorganization measures under the protective cover of the moratorium. In addition, salary payments are secured for a limited period by the payment of insolvency compensation. For companies that were financially sound before the Corona crisis, forbearance is thus a possible restructuring instrument.

Authors:
Simon Roth and Alain Friedrich are partners and lawyers at Lex Futura AG. The firm specializes in providing legal advice to companies, management and board members in crisis situations, especially in reorganization law.

Owners of smaller SMEs, businesswomen with their own businesses, one-woman entrepreneurs, self-employed women and freelancers - many of them are feeling the crisis of the Corona pandemic particularly strongly. The loss of orders and/or even the closure of their business puts them under pressure from a business point of view and thus also from a private economic point of view. The Swiss Businesswomen's Association has therefore launched an initiative to support such women.

On the website www.corona-solidaritaet.ch the association lists offers of women who provide free services for other women who are economically affected by the corona crisis. The assistance can be focused on business as well as family or personal life. Anything that helps during the difficult period is welcome: Assistance in setting up online tools, texting an important letter, help in filling out the tax return, thinking along for a new business strategy, but also taking care of children, going shopping, distracting from worries with a cultural offer, etc.

Last but not least, the Corona Solidarity website aims to connect businesswomen, encourage them and inspire them for the future.

Here you can take advantage of the offers: www.corona-solidaritaet.ch
If you want to make an offer yourself: https://lnkd.in/gmBKAq2 or by email to office@wirtschaftsfrauen.ch