The number of companies that submitted an application constitutes a negative record bankruptcy last month in Denmarkwhile at the same time in Finland four out of ten SMEs plan layoffs in 2023.
A total of 331 corporate bankruptcy applications were filed in November, the most in one month since 2009, according to a report released Monday (5/12) by Denmark’s SMVdanmark.
Since the summer, “businesses have been hit hard by high inflation, bloated energy bills and fears about the economy’s path that have dramatically reduced consumers’ desire to shop,” writes SVVdanmark, which represents 18,000 small and medium-sized businesses in Denmark.
Many businesses are struggling to survive due to high energy costs and the impact of the Covid-19 pandemicthe report underlines.
“Never in the annals of statistics have we recorded so many bankruptcies of companies employing employees,” points out Lasse Lundqvist, a consultant at SMVdanmark.
The hardest hit has been the construction sector and retail trade. More than half of the bankruptcy filings involved construction companies.
Lundqvist predicts that “unfortunately, we will see even more business bankruptcies in the coming months.”
Finland: Four out of ten SMEs are planning layoffs
More than four in ten Finnish SMEs plan to lay off workers in 2023 and about 10% consider bankruptcy likely in the coming year, according to a report by the Confederation of Finnish Industry (EK) also released Monday (5/12).
2023 is predicted to be almost as bleak for the country’s small and medium-sized enterprises as it was in 2021, the first year after the outbreak of the Covid-19 pandemic.
According to the report, 35% of small and medium-sized enterprises estimated that demand would fall and that investment would shrink even more in the new year. About 25% of companies with an international presence predict that foreign trade will register a decline in 2023.
The Russian invasion of Ukraine has caused the prices of raw materials and energy to rise significantly forcing many businesses to resort to cost-cutting solutions, said Jari Huovinen, an analyst at EK.
Successive crises have exhausted the limits of endurance of many Finnish SMEs, which have fallen into a dire situation, notes Huovinen.
More pessimistic are the small and medium-sized enterprises in the eastern and northern parts of the country, since 44% and 43%, respectively, predict a contraction in demand in 2023. There are approximately 84,500 small and medium-sized enterprises in all of Finland.
Source: News Beast
Bruce Belcher is a seasoned author with over 5 years of experience in world news. He writes for online news websites and provides in-depth analysis on the world stock market. Bruce is known for his insightful perspectives and commitment to keeping the public informed.
