Are you sure?

Economic crisis affects 87% of SMEs

K&H Bank's SME confidence index shows that the economic crisis has affected 87% of SMEs in Hungary. 64% of SMEs in the country have initiated austerity measures and 47% have laid off staff as a result of the recession, K&H toldMTI.

The survey, carried out to calculate the index, included 700 SMEs in Hungary.

The index shows that commercial companies are more affected by the crisis than agricultural enterprises. About 56% of SMEs reduced costs, 47% laid off staff and 42% postponed investments. About 28% of the SMEs surveyed cut non-wage benefits, while 25% introduced a shorter work week. About 84% of SMEs said sales fell, while 45% complained about late payments.

About 37% of the SMEs surveyed faced liquidity problems. Though 70% of SMEs expected the crisis yet to deepen, only 36% believed that their economic circumstances would deteriorate further in the coming year.

About 17 of the SMEs surveyed expect improvement during the period, while 46% said their economic circumstances to stagnate. About 85% of the SMEs surveyed said they would still be operating in one year. (MTI - Econews)