Revenue hits and staff lay-offs are the top issues faced by Letterkenny businesses this year, a new survey has revealed.
Findings from a new Letterkenny Chamber survey show that business owners in the area fear a domestic recession, various sectors are concerned about staff returning and Brexit is still high on the agenda.
75% of business owners say they are worried about a domestic recession and 50% are concerned about a post Brexit impact.
This has been the toughest year for businesses in long time, said the Chamber. Covid 19 came at a time when businesses were finally looking ahead after the long financial recession of the last decade.
This survey is first of the Letterkenny Chamber’s quarterly business sentiment surveys looking at a range of issues. It is intended to become a quarterly initiative.
It should be noted that 30% of businesses that responded to the survey are still closed and 7% of those are not prepared for re-opening.
The majority of businesses that responded reported that turnover since 31st October 2020 has been reduced with 30% reporting a reduction on turnover of between 50% & 74%.
In looking ahead to the end of the year many are pessimistic about their revenue forecasts with 28% expecting a 75% – 100% reduction in revenue.
Staffing is an issue in varying ways across all sectors. 8.9% have laid off staff permanently however in Hospitality & Retail this increases to 14% and 17.7% respectively. Temporary layoffs are much higher in these sectors.
From the outset of the pandemic the government acted quickly to offer business supports that were taken up by many businesses over the past year. Over 60% have availed of the Wage Subsidy Schemes, 54% took up the Restart Grant and there was also good uptake of the Business Continuity Grants and Trading Online supports administered by the Local Enterprise Office.
However, the survey found that 73% of respondents do not want to take on any new debt with just 1.3% availing of the Microfinance and SBCI Loans.
The Chamber and many commentators often quote that their business community is resilient in a crisis and the survey asked how businesses had adapted. 64.5% now have an online presence through a new or updated website and 52% are now active on social media.
In many sectors particularly Education & Skills and Professional Services over 80% have developed their websites and now use video conferencing, provide webinars and now offer digital consults to clients. They have reacted quickly and decisively to keep their customer base and ensure revenue streams.
Toni Forrester, Letterkenny Chamber CEO said “This survey will assist Letterkenny Chamber in our lobbying activities now and post Covid-19 and enables us to ensure we are listening to business. I would like to acknowledge the help and support of LYIT in this process. The compilation of the survey and results was carried out by a LYIT Masters Student, Yawer Mehdi, who has been on placement with the Chamber. We were also supported throughout the process by Dr. Isobel Cunningham, LYIT Business Faculty. Their help and support over the past months has enabled us to bring the survey to reality and provides a foundation for future reports.”
Michael Margey, President of Letterkenny Chamber said, “Overall this survey shows that businesses have proven throughout this health crisis that they are strong and adaptable, they have by and large remained optimistic that business will return, and they will be able to re-open safely and continue to provide job opportunities. Over this past year we have seen businesses support their staff and each other in ways we didn’t think possible, and we hope this spirit of co-operation will remain over coming years.”
“On a final note”, Margey continues,“People are of course frustrated and are keen to get back out doing what they love best in welcoming customers back and opening their doors, but they are also demanding a clear plan from the leaders in Government in terms of the path to re-opening the economy and of averting any further periods of restrictions.”
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