Crisis is our everyday life. Due to the crisis, the financial problems of the companies are becoming serious, and many of them are on the verge of survival.
Sources of Influence in such situations come from several sides, the pandemic, the energy crisis, the Russian-Ukrainian war, fuelling inflation, and it is reflected in the reduced purchasing power of the citizens.
And all this affects the operation of companies.
This is not only a situation that prevails in our country, the world is “living” the same nightmare.
The thought arises, are companies really struggling to deal with these situations and what is the business climate, how much space do they have for this struggle?
In such difficult working conditions, it is crucial to take wise, sustained and correct steps. If there are dilemmas among the management, according to the consultants, it is better to ask for advice from experts, than to make uncertain, risky and hasty decisions independently. With such decisions, in such an environment of doing business, they will cause additional problems in the company.
In our country, and after all the advice from business consultants, however, most managers rely on their own attitudes and decisions in running a business, considering that they know their company best and no one from the outside can tell them or help them.
Whether it’s wrong or not, they will mostly judge for themselves, but what works more in our areas is the motto – “get by, then live”, which now in times of crisis is the most valid, more than before, so everyone with their skills, to the extent of their knowledge and ability, manages to get by. Therefore, the question is who will survive, whether those companies that do not know how to manage well in the new circumstances or the insolvent companies, which implies that they did not manage well and came to a state of illiquidity.
But how much are our managers ready to find qays in order to withstand such crises, which follow one another, the pandemic, the energy crisis, and that together with the consequences of the war?
And that, all in our environment of doing business and survival of the economy.
Is the survival of companies only in the ability and skill of the managers, or is the state also responsible and bears part of the plight of many companies and sectors.
And does the talk and the “excuse” of the state that it is now crisis, “hold true”?
Yes, now is a crisis and the circumstances are different for doing business, but if the other things work, if the environment for doing business was created with a good setup and functionality of institutions, organizations, the efficiency of administration, etc. then, it seems that the impacts on businesses would be smaller, the risks as well, and the economy would bear the impacts of this kind of crisis more easily, as it would deal only with the crisis or crises, and not with all these things in our country. Simply, there will be a different starting position in the fight against the crisis. Now, it’s much harder to do that.
Because, what should they rather deal with, the crises or the inefficiency and conditions for doing business.
In these conditions, and with all the experiences, diplomas, educations, management, etc., it is probably difficult for someone to fight and be successful, resourceful, liquid.
Companies from many sectors are reacting, seeking support from the state.
But how much can they rely on that support?
At the moment, they have the opportunity to access finance, through institutions, loans, public calls for companies, farmers, etc.
How much will it keep the fitness of the companies?
Maybe not enough, but it’s good, at least it will calm them down a little and give them hope to continue working. Why, in these circumstances, many business owners are also considering closing.
And, after all the efforts, program measures etc. should it be allowed, to change this course and go in the opposite direction, by reducing the number of companies and workers?
Therefore, support must be available in various forms, not only in loans, etc. but also through legal solutions that will improve the working conditions of the economy and create a more favorable business climate. A climate of certainty that things are set well by the state, and the company remains to fight for development, innovations, investments, conquering new markets, introducing high technologies, etc.. In this environment, in extremely difficult working conditions due to the crisis, the struggle to deal with all the laws, procedures, fiscal duties, out-of-date institutions, ambiguities in many legal solutions, etc. unfair competition, the gray economy, will mean a bigger collapse for companies.
Certain sectors suffer huge losses.
The data confirm that the crisis “swallowed up” many companies. Namely, in the first quarter of the year, 3,920 companies went out of business, according to the data on the platform Бизнис.Мрежa.мк., while last year the number of defunct companies was 6,995. The defunct companies are in the trade, processing industry, mixing facilities, construction companies, transport, and storage companies. From the data of the Central Registry from last year, it can be noted that in 2020, 6,214 companies were deleted on all grounds.
Therefore, it is not always about skill, ability, or learning, in business. When a favorable environment for the economy is created, then let’s “measure” the indigent and the illiquid.
Maria Georgievska, M.Sc
Editor and host of the business and economics show PROFIT