One in five tradesmen fears for the future because of Corona

The Swiss economy is recovering and will grow by 3.6 percent this year, according to forecasts by the State Secretariat for Economic Affairs (Seco). But this positive outlook is not yet reflected in the mood of many businesses. In a non-representative survey conducted online by localsearch (Swisscom Directories AG) among more than 800 owners and managers of small businesses, one in five (19 percent) say they are "depressed, frustrated and fearful for the future because of the Corona pandemic". Another 23 percent don't put it so drastically, but can at least partially identify with that statement.

In the event of a further lockdown: one in five tradespeople would close their company for good

If there were to be another lockdown in Switzerland, this would have drastic consequences for a considerable number of entrepreneurs. For 19 percent of small businesses, this would mean the fairly certain end of their company. Another 12 percent would see their business severely endangered. However, a solid majority of 70 percent of owners and managing directors categorically rule out a closure of their company or at least consider such a move unlikely.

Not all negative: majority sees digitization push as opportunity

A majority (56 percent) can also take something positive from the crisis. These traders see the digitization push triggered by Corona with QR codes, e-commerce, digital marketing, delivery services and contactless payment as a great opportunity for their business. A quarter (24 percent) view digitization critically.

42 percent of all traders are positive about the future and do not expect their business to suffer for long from the consequences of the pandemic. And yet, many traders fear that the effects of the pandemic will have a negative impact on their business in the long term. 20 percent are firmly convinced of this, 12 percent are somewhat convinced and 26 percent cannot rule it out.

Although Corona has shaken things up, the customer structure of the businesses surveyed has not changed. 86 percent of all owners or managers say their customers are still the same today as they were before the pandemic. Only one in seven say they have different customers today than they did at the beginning of last year.

Consumers spend less today than before the crisis

Even if the customer structure has remained unchanged in most cases, customers seem to have partly adapted their buying behavior and demands to the new zeitgeist. More than one in two traders (56 percent) say their regular customers tend to spend less money with them today. And customers have become more demanding and are asking for more for their money - as 41 percent of all small businesses note.

Businesses in Western Switzerland clearly more pessimistic

While 56 percent of all Swiss businesses say that their company is at least partly worse off today than before the pandemic, the figure in French-speaking Switzerland is significantly higher at 63 percent. A similar difference can be seen in customers' perceived propensity to buy: Whereas 55 percent in Switzerland as a whole note a certain reluctance to buy on the part of their customers, the figure in French-speaking Switzerland is 68 percent. And the question of whether the company will suffer from the consequences of the pandemic in the long term is also answered much more negatively by the French, with 73 percent (Switzerland as a whole: 58 percent).

Source: localsearch