Small businesses in crisis: 10 solutions to keep SMEs running

The future looks bleak for small businesses: 25% risk bankruptcy this year, while managers consider a drastic 10% headcount cut. What could be the timely solutions to safeguard the SME sector, the “heart” of a capitalist economy?
The president of National Union of Romanian Employers, Petre Milut said if current economic condition worsened, 25% of small and medium sized companies would risk going out of business this year.

As NURE’s official said, in order to avoid the collapse of SME sector, the Government should prompt measures, such as a softening of the lending conditions. The president of the union of employers stressed that the payment of VAT should be made at the cashing.

Another measure proposed by Milut is the reduction of gas, energy and fuel excises. “In the past few months, the quality of the natural gas has been very weak. Also, we have the most expensive gas in Europe”, said the chairman of NURE.

He added that unlocking lending for small businesses by the state would be a good solution to stabilize the situation among small and medium sized enterprises.

Another reliable measure identified by the representative of NURE consists in regulating the price of raw materials through the Competition Council. “The situation isn’t any better when it comes to raw materials. For example, constructors wound up in getting the cement supplies from Bulgaria or Turkey”.

10 crisis solutions to keep small businesses running

- easier access to lending

- payment of VAT due on the date of cashing

- reduction of excises for gas, energy and fuel

- easier access state-backed loans

- state regulation of prices for raw materials, via Competition Council

- reorientation of the business toward more profit-making fields of expertise

- reduction of social contributions

- financing from banks (BCR and Banca Transilvania, the recent recipients of EBRD’s support package for SME lending)

- access to CEC Bank and Eximbank funds

- takeover by a strategic or financial investor

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