The Banco de Spain sheds light on the company profile most impacted by the coronavirus crisis, coinciding with the new aid plan in which the Government is working for an amount of 11,000 million euros. A study carried out by the supervisor makes it possible to draw up the profile of the most damaged company and offers the economic vice president Nadia CalviÃ±o details on where the new aid mechanism should focus.
The portrait made points to a small company in less than 10 workers, Dedicated to hostelerÃa, with a few years old and located in the urban environment as the one greatly affected by the crisis.
The Bank of Spain it confirms the asymmetric impact of the crisis by sector and by region depending on the amount and duration of the sanitary restrictions approved in the last year. In this sense, activities such as hospitality have seen reduced your average billing by 45% and there are regions more exposed to tourism such as Canary and Balearic Islands where the impact has been even greater.
But not everything is the sector or the location area. “The results show that, beyond the differences observed by branches of activity and by regions, the characteristic with the greatest capacity to explain the differences between companies in the impact of the health crisis is their tamaÃ±o”, says the regulator based on the more than 4,000 responses obtained in a recent survey conducted on business activity.
Other factors that have influenced the impact are age – the ‘young’ have suffered the most – and their presence in urban environments most affected by sanitary restrictions. “Compared to the hotel industry, manufacturing companies are, on average, a 40% more productive and eight years older; they are most often located in a rural setting; they have less debt, and their size, measured by the number of employees, is higher, “explains the analysis.
In terms of sales, for example, the smallest companies suffered a more pronounced fall, of -19% year-on-year in those with less than 10 employees and of almost -18% in those with a number of workers between 10 and 49. For their part, although medium and large companies also suffered the effects of the crisis with intensity, they reported somewhat less marked decreases, close to -12%.
However, the economists of the Bank of Spain warn that generalizing is dangerous and ask to carry out a detailed analysis on the effects of Covid in companies due to its great heterogeneity. In this sense, its vision is close to that of the large banks, which ask the Government for a selective analysis of the solvency of each company before a restructuring plan and massive write-offs that could destabilize the financial system.
I am Derek Black, an author of World Stock Market. I have a degree in creative writing and journalism from the University of Central Florida. I have a passion for writing and informing the public. I strive to be accurate and fair in my reporting, and to provide a voice for those who may not otherwise be heard.