The economic impact of DANA is undoubtedly transversal, but in purely business terms the blow of the catastrophe can be the final straw for many small and medium-sized businesses and self-employed workers. Reason why the Government is trying to intensify in this segment of the productive fabric the network of aid that has been approved, for the moment, in two phases for a value of 14,373 million euros. However, as business associations, chambers of commerce and professionals on the ground such as the Administrative Managers Even with these proposed measures, the recovery of 100% of the economic activity that has been slowed down in the Valencian Community and the rest of the regions hit by the storm is not guaranteed.
In fact, the small business or the self-employed person with an employee in charge has been subject to a progressive loss of profitability and reduction of margins due to measures that have skyrocketed labor costs, and also due to the erosion effect of a high inflation environment. which has operated especially on production costs. A reflection of this mirror is provided by the latest barometer published by the General Council of the Colleges of Administrative Managers, which confirms the destruction of 129,000 businesses so far in 2024, a figure that now falls short once the impact of DANA on these smaller companies and self-employed workers is known.
The survey carried out in the field, more than 6,000 active managersoffers the relevance of the knowledge of the main collaborators of companies and self-employed workers in terms of business administration and relationship with the State, but it has data from the last week of October, so the Administrative Managers take for granted an increase in these figures. As mentioned, the first data that the barometer shows is that businesses continue to disappear as a result of the difficulties faced during and after the pandemic and the successive years of increased costs, reaching the figure of 129,000 businesses disappeared during this fiscal year 2024.
Liquidity problems
From the economic point of view, the Barometer indicates that 16.7% of businesses They expect to close with losses in 2024 (480,000 businesses)compared to 61.9% who believe they will close with profits. Regarding billing, 26.5% of businesses are going to close the year with lower billing than the previous year, while 39.2% expect to bill more this year than last. It stands out that 18.3% of businesses still bill less than before the pandemic, compared to 46.8% that have recovered the level of billing before the pandemic.
Regarding financial data, 17% of businesses have increased their debt in 2024, compared to 22% that have decreased it. 15.7% of businesses continue to have serious liquidity problems, and 67,000 businesses are on the edge of bankruptcy.
“In March of this same year, our barometer indicated that 150,000 businesses were on the verge of suspension of payments,” he says. Fernando Jesus Santiago Olleropresident of the General Council. “If to the 67,000 businesses that are in this situation at this moment we add the 129,000 that have disappeared, we find that there are 196,000 companies with serious liquidity problems in 2024, that is, 46,000 more than those we indicated at the beginning of the year,” explains the president of the Administrative Managers beyond the positive profit figures.
«These data have been obtained before the DANAso it is more than likely that at the end of the year they will be seriously modified as a result of the damage that tens of thousands of businesses have suffered, directly or indirectly,” says the president of the Administrative Managers. «We will see how the aid arrives, when it arrives and under what conditions, because that will be essential so that the impact is minimized, says Santiago. But keep in mind that there are many companies that will be greatly affected indirectly, and these will not receive aid, although they will lose sales to affected companies, they may even have difficulties collecting the debts they had with affected companies. directly”.
Business outside the system
It is worth remembering that in February 2024, the Administrative Managers’ barometer indicated that 12% of small and medium-sized businesses were operating partially or fully outside the system. In the current barometer the figure reaches 11%.
On how the agencies believe that the economy will evolve situation of your clients (business) in 2025 – scoring from 0 to 10, with 10 being the most positive view of evolution – the average score rises to 5.9. This, considering that 20% of those surveyed rate the evolution with a 4 or less, while 50% rate this issue with a 5 or 6.
These are “small and medium-sized businesses, self-employed people and entrepreneurs who own a business with or without employees. And for this, we ask who keep the accountstaxes, social insurance, administrative procedures in general and we accompany them in their business strategy, that is, the Administrative Managers,” says the president of the General Council.
The barometer provides another piece of information that was already known, and that is that 83.6% of managers consider that the Administration has not improved its treatment of citizens in 2024, compared to 14% who consider that it has improved. 52.7% consider that today it is more difficult to carry out procedures with the administrations, compared to 27.6% who consider the opposite. The score regarding the functioning of the administration is 4.7, where 43% of the Administrative Managers suspend the Administration, and 34% score it with a 5 or 6.
«Our Administrative Managers are the professionals who carry out the most processing on behalf of the citizen before the Administration, and they continue to suffer the difficulties of its collapse. Today it is still impossible to make prior appointments for many procedures,” says the president of the Administrative Managers. According to the study itself, the solution lies in the enactment of an Administrative Social Collaboration Law, as indicated by 86% of those surveyed.
«Although we have been saying it for a long time, The Administrations continue without raising their headsbut some Autonomous Communities have already realized that a Law of Social Collaboration or Administrative Simplification would make it possible to reduce current problems,” says Fernando Santiago.
«Small and medium-sized businesses continue to suffer the effects of poor aid management during the pandemic. We hope that for this occasion they take into account what they have learned, facilitate the processing, consider direct aid and I would ask that they take into account the indirect effects on the billing and collection of those businesses that were closely linked to the businesses directly affected,” says the president of the Administrative Managers.
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