The Results on The business of Italian firms because of COVID-19:
Immediate negative impact for seventy-six of Italian firms. For two out of three, the emergency can harm the domestic company.
The COVID-19 emergency continues, and companies’ concern concerning the results on the business of the pandemic is growing – alongside the necessity to place in situ all potential ways to preserve commercial property. It is often the image printed by the analysis disbursed by BVA Doxa on the results of the unfold of Coronavirus – and also the connected measures enforced to contain the infection – on the business of Italian firms.
The analysis focuses on a sample of 301 Italian firms of various sectors and sizes, with national and international presence, characterized as follows:
- Size: forty-eighth SMEs and fifty-two medium and enormous firms.
- Geographical area: fifty-four in Lombardia, twenty-second remainder of Northern Italian Republic, the twenty-second in the central Italian Republic, a pair of in Southern The Italian Republic and islands.
- Area of space: thirty-fifth solely Italian firms, twenty-eighth Italian firms with offices abroad, thirty-seventh foreign multinationals operative in the Italian Republic.
- Market: thirty-fifth B2C firms, thirty-ninth B2B and twenty-sixth each equally
- Sector: two hundredth firms active in practice/business services, two-hundredths in finance/utilities/attention, eighteen in goods/retail, 16 PF in prescription drugs, 11 November in media/recreation, seven-membered trade and eight
Impact on the business from the minute zero
In a context of considerable uncertainty as regards the length of the continuing emergency, the impact of the pandemic unfold on the company will be represented as abrupt and immediate. In essence, seventy-six of the companies interviewed declare the adverse effects from the first hour, whereas one in 5 firms expects to expertise the primary effects beginning in Apr. Effects that four out of 5 firms take into account high, which affects equally little firms, with but fifty staff, and large ones, with over m staff.
The outlook for domestic demand is unfavorable, the impact on exports remains unsure
For 2 out of three firms, the emergency can negatively affect the demand for merchandise and services at the national level. Nearly [*fr1], 45%, believe they’re going to face a very vital 10 percent drop.
On the opposite hand, the outlook for the demand for merchandise and services on the international markets remains additional uncertain. In essence, thirty-fourth don’t nevertheless skills to precise themselves on future situations, even if their area unit already forty-third of firms that already claim to watch negative repercussions additionally on exports.
In general, little entrepreneurs categorical the best concerns: seventy-seven of SMEs can expertise vital decreases in domestic demand, whereas fifty-six of that across borders.
Reduction of advertising investments for half the businesses
To counter the crisis and preserve commercial property, the Italian firms can scale back a big part of their investments.
Investments in promoting and communication can suffer the foremost necessary reductions: nearly [*fr1], 49%, can scale back advertising and media defrayment activities, whereas forty fifths can cut promoting activities. Alternative vital reductions can affect business development policies, for thirty-ninth of firms, the launch of new merchandise and services, for thirty third of firms, and analysis and development activities, for twenty-sixth of firms.
It is a complicated and significantly negative situation. But a large proportion of firms go against it. The trends and declares that to retort to the crisis, some
significant strategic investments can increase. One in four firms can increase
promoting activities, whereas forty-first can benefit from the momentum to
extend or maintain its media presence.
Smart operating works (and can continue when the emergency)
Forced to possess to implement agile work policies to suits government provisions and limit contagion, seventy-three of Italian firms introduced good operating in an exceedingly “massive” manner, i.e., applied to the best range of
individuals. However, solely a minority has failed (or has not had the opportunity) to implement it equally extensively. 17 November have managed to implement it solely in an exceedingly restricted and restricted thanks to some areas/functions. Whereas one in 10 firms apply it marginally, or in an
exceeding manner reserved for specific figures.
Foreign multinationals with Associate in Nursing workplace in Italian Republic area unit that the UN agency has activated agile work policies: ninetieth area unit already in proper operating. However, the proportion drops if Italian firms with foreign branches and solely Italian firms area unit observed. Of the previous, sixty-seven have activated proper working, whereas, for the latter, only 3 out of 5 firms have done, therefore.
Italian firms have thus discovered that good operating works: as several as ninetieth categorical a reasonable opinion in terms of potency and optimum management of the work activity. Not solely that: for 2 out of 5 firms – especially those active within the finance, utilities, and attention sectors – the structure changes introduced during this amount are continuous even when the emergency is over. An application that has thus been significantly appreciated. But despite the circumstances during which it had been introduced, it is destined to last over time.
The prospects: fears for the longer term. However, one in 3 firms remains optimistic.
Most firms, 67% specific concerns it the case, which can have significantly vital repercussions over an extended amount of your time. A 3rd of firms area unit additional optimistic and believe that the crisis will resolve itself in an exceedingly few months.
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