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Coronavirus: Most Businesses in Budapest See Bleak Outlook

MTI-Hungary Today 2020.03.20.

Fully 93 percent of businesses in Budapest believe their outlook is bleak, according to a flash survey conducted by the Budapest Chamber of Industry and Commerce (BKIK) on the impact of the coronavirus crisis.

The survey covered 1,895 Budapest-based companies, of which 83 percent are microbusinesses, 15 percent SMEs and 1 percent large companies.

BKIK noted that one-third of the companies have their employees working from home, 19 percent have sent them on unpaid leave and 12 percent on paid leave.

Coronavirus: Half of Companies in Hungary Contingency Planning

The survey shows the ratio of home office work increases in proportion to the size of the company. Fully 80 percent of large companies have shifted to home-office work, while only 51 percent of small businesses have done so. Altogether 55 percent of medium-sized companies have home-office arrangements in place.

Only one-fifth of the companies had a contingency plan for such situations, but 34 percent of the remaining ones are now drawing up an emergency plan, and 15 percent are considering doing so.

BKIK said 60 percent of the companies have experienced a decline in orders and 40 percent a drop in the number of guests, customers, consumers and clients.

Coronavirus’ Brutal Economic Impact in Hungary Already Felt

In response to a question about what kind of help they would find useful under the circumstances, 40 percent of the companies said they would support the establishment of a fund to provide preferential credit or guarantees to companies to help them cope with temporary liquidity problems on condition that they maintain their headcount.

Featured photo illustration by Zsolt Czeglédi/MTI