Young entrepreneurs have been able to withstand the first blow of the health crisis. According to a study by the Association of Young Entrepreneurs of Catalonia (AIJEC), 78% of companies created by young people up to 40 years old have been able to maintain their activity despite the state of alarm decreed by the Spanish government two months ago . 32% have done so without any setbacks and 46% have continued to operate with some restrictions. On the other hand, 22% had to stop the activity.
In addition, the leap from face-to-face work to teleworking has not been an added problem, in most cases, for the companies of young Catalan entrepreneurs. 44% of companies were fully prepared to work remotely and a further 42% only had to make small adjustments to apply telework during the confinement period.
Given this reality, some of the measures that have been taken to deal with the crisis have been the submission of temporary employment regulation files (42%) and the application of reduced working hours to the workforce ( 28%). However, 30% of companies have been able to keep their workers in the same condition as before the appearance of covid-19. With regard to the economic impact, the fall in turnover is one of the most obvious consequences. 18% expect a drop in turnover below 10% and 32% expect it to be at most 20%. 18% estimate to lose up to 50% and another 18% to 75% of turnover. 14% expect to lose 100% of their bills during this period.
The president of AIJEC, Ruben Sans, highlights the widespread effort being made by the country’s business fabric and calls for great caution and agility in the application of measures to the competent administrations. “With these figures in hand and the crisis we have been facing, I think we young people have been able to handle the situation for the time being.” For Sans, who was elected president of the organization on March 11, “the future of our companies and the business fabric in general depends, to a large extent, on the decisions taken by the administrations these days.” The Young Entrepreneurs Association calls for “listening to the business community and real measures to help companies avoid closing down”.
Young entrepreneurs optimistic despite the uncertain future
As for the future, young Catalan entrepreneurs are, to a large extent, optimistic. 36% do not suffer from the financial situation of their company, although they are aware that in one way or another they will be resentful. 16% say they still have a pillow to hold for half a year in the current situation and 38% give themselves a three-month margin. One of the main concerns of all of them is the growing number of defaulters. 50% say they have already begun to notice the effects of delinquency.
On the short and medium term needs of companies in the current context of crisis, young entrepreneurs point to tax breaks (68%) and tax deferral (56%) as the main measures to be taken by of the administrations. Obtaining new ways of financing (32%) or the moratorium on the payment of rent and mortgages (32%) are other priority needs of this group.