First quarter sees 16 percent rise in business closures
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Around 23,800 are temporarily closed, up 28.2 percent, and more than 5,000 have permanently ceased to do business, a 26.4 percent increase, while 11,300 others are completing dissolution procedures.
The majority are small, newly-established companies that were vulnerable to the impacts of the Covid-19 pandemic.
Some 29,300 enterprises were established during the quarter, down 1.4 percent, and 14,700 others resumed operations after temporarily closing.
A survey of the manufacturing sector by the GSO found 68.6 percent of firms saying their business situation is better than in the previous quarter, and 85 percent believing it would improve next quarter.
The majority said strong competition was the main factor affecting their business. Other factors included low demand, resource crunch, raw material shortage, and lack of human resources.
Only 27.8 percent of firms reported an increase in the number of domestic orders from the previous quarter, and 25 percent said there was an increase in exports.
Questions & Answers
Q.Which types of businesses are most affected by closures?
Which types of businesses are most affected by closures?
The majority of businesses closing permanently or temporarily are small, newly-established companies. These firms were particularly vulnerable to the effects of the Covid-19 pandemic.
Q.What are the main challenges facing businesses that remain open?
What are the main challenges facing businesses that remain open?
Most businesses cite strong competition as their primary concern. Other significant issues include low demand, a resource crunch, raw material shortages, and a lack of human resources.
Q.How do domestic orders and exports compare to the previous quarter?
How do domestic orders and exports compare to the previous quarter?
Only 27.8 percent of firms reported an increase in domestic orders from the previous quarter. For exports, 25 percent of firms indicated an increase during the same period.
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