Small and medium-sized companies struggle to survive

Small and medium-sized companies struggle to survive

In May, the increase in the number of insolvent companies was 17 percent higher than a year ago and as much as 150 percent higher than before the pandemic.

This is according to data from Allianz Trade. The number of insolvent companies rose strongly in the construction industry. However, the situation also worsened in all other industries, including food, manufacturing and wholesale trade. In earlier months, the number of insolvent companies fell, but this was more the result of changes in the law. Fewer entrepreneurs were entering the restructuring process. In contrast, the number of bankruptcies remained at the same level. In May, the number of bankruptcies and restructurings exceeded last year’s level.

According to Allianz Trade experts, the increase in the number of insolvent companies this year as a whole may reach 12 percent. It will be at a similar level in Western European countries.

Tomasz Starus, president of Allianz Trade in Poland, explains that the biggest risk for Polish companies today is high uncertainty. It stems from inflation, rising commodity prices, pandemics and broken supply chains. In fact, Polish companies have been operating in an atmosphere of uncertainty and increased risk for more than two years now. Small and medium-sized companies have the hardest time surviving. They don’t have the same opportunities as large companies in terms of liquidity, access to banking products and negotiating supply prices and passing on higher costs to customers.

Source: https://www.bankier.pl/wiadomosc/Ciezkie-czasy-dla-malych-biznesow-Sytuacja-nieprzewidywalna-jak-nigdy-8366657.html

 

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