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60% of small firms can survive pandemic if it ends in a few months: poll

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Oh! So they're trying to condition is for "a few months" now? That would be catastrophic for all but big business. And even then, cut backs would see a huge number of jobless.

Stop this madness now.

https://youtu.be/bfN2JWifLCY

-2 ( +8 / -10 )

May’s paycheck will be 90% down with an excuse from my boss forgoing payments from the company due to its small size.

Assuming the government is true to its word re the 100k then I am able to pay rent at the end of May, if not then who knows?

There are also a number of other taxes I have to contend with at the moment too so it is going to be really tight.

7 ( +9 / -2 )

So 40% of small firms will not survive? That is shocking.

13 ( +14 / -1 )

Personal anecdote yet relevant: These Japanese firms will say they can ride this out and have a path to solvency until a few days before they "suddenly" declare bankruptcy leaving clients and employees out in the cold.

2 ( +5 / -3 )

dagonToday 08:29 am JST

Personal anecdote yet relevant: These Japanese firms will say they can ride this out and have a path to solvency until a few days before they "suddenly" declare bankruptcy leaving clients and employees out in the cold.

Agree. But that's hardly unique to Japan. I've seen the exact same thing with companies in the U.S. over the last several decades. Often it's not planned though, proprietors cling to hope and continue until their accountants or bankers tell them to abandon ship.

3 ( +5 / -2 )

@ kurisupsu

Sorry to hear!

Media bias is a joke

"60% of business can survive pandemic"

"400,000 could die in pandemic"

Should be

"40% of business cant survive pandemic"

"122,600,000 could die in pandemic"

0 ( +5 / -5 )

instead of talking about business failure, they need to talk about stimulus plans for small and medium size companies,

let's talk about how the government can help the mom and pop stores instead of how many will go out of business.

7 ( +7 / -0 )

Dagon, As OssanAmerica says, it’s not just a Japan. As an employee of a small business run by a couple for some 20 years and employing 7 workers in the USA I went for a few months with reduced paychecks with promises of the balance “soon”. In the end the checks bounced even when I went straight to the bank to cash them, there were more unkept promises, and then one day coming to work to find the owners had hauled away the machinery and disappeared overnight. I won’t go into here why I didn’t leave or take the issue to the labor board etc. I’ve seen the same thing happen to others also in the US.

Many decades ago in the US I read a pamphlet designed for people planning to start a business. It said most failures occur during the first year and advised startups to have on hand enough funds to pay rent, utilities, and salaries and buy supplies for one year with no income should the operation not be immediately able to bring in enough customers or sell enough product. It also said to try and keep that much money on hand at all times to tide over in case of emergency such advice illness or disaster. Obviously there are many small businesses that can’t or won’t follow that advice and going under is one of the risks they have to take.

That said I’m doing what little I can to help keep my favorite places afloat. Hope they make it through.

Invalid CSRF

6 ( +6 / -0 )

Japanese SME's represent 50% of GDP and 70% of national employment. Studies on primary cash balance data (vs Poll) by JP Morgan and a number of other banks around the world indicate the majority of SME's run out of cash in 16-27 days (varies by country). So even if 40% of SME's fail, that's 20% GDP reduction and 28% unemployment. And then the flow through effect to property and supply chains. We have to SOS - Save Our SME's and do everything we can to support them through business and through government assistance. It is the only way we can accelerate Japans economic recovery once we have control of the medical side of the crisis. So please, support your local businesses. Every effort makes a big difference!

3 ( +3 / -0 )

Clarification: It is not a "Japanese" problem, it is a late stage capitalism problem. Gig, part time, zero hour contract workers are taken to task for not having months of savings to ride out a rainy day while all these businesses are in dire straits after a few weeks in this crisis. There is a double standard at work and it is not based on nationality.

7 ( +7 / -0 )

When these large corporations are begging for money and opening their accounts, it is interesting how many of them have incurred massive debts to expand and are just servicing loans to prop them up. Some so-called successful enterprises with 10 billion dollar businesses are exposed as comprising 8 billion dollars worth of debt, and heavily rely on cash flow to pay off loans, and maintain their image. A side-effect of the business model of making money work for you and emphasis on shareholder value. A recent example is virgin australia who have been found to owe more than 6.8 billion dollars to various creditors.

4 ( +4 / -0 )

The lede should be that 40% of small businesses will go to the wall, which is a much greater problem - particularly in the countryside.

3 ( +3 / -0 )

The slant here is obvious. How about printing 99.95% of Japanese will not die from Covid-19? 40% of SMEs failing is catastrophic, and I suspect the number will actually be higher, as business will not return to normal as soon as many are hoping.

And the market for these small businesses will be taken over by the giant corporations once again - who will no doubt say "thank you for shutting things down so we can move in cheaply." Just kidding, they will thank you by raising their prices and cutting quality.

3 ( +3 / -0 )

The govt screwed it up once again , the govt should be stepping in to support the struggling business who have been stomped by the govts inability to manage this situation properly.

Or is the govt here going to become a welfare state by handing out unemployment cheques or will it sit idly by while the blue plastic sheet/cardboard box cities grow larger than some small towns?

2 ( +2 / -0 )

If they don't reopen soon our kids will be living in the 1930s. The economy will go into a death spiral.

2 ( +3 / -1 )

They will survive as zombies. Need to keep the high employment rate among the OECD nations!

Japan is getting poorer every year, international-wise. Japanese people aren't aware of it because they never travel outside their country or East Asia. Inside the country, Japanese wages depress every year. Japanese equities are dirt cheap but no foreign investor wants to buy them. Despite the fact that Shinzo Abe keeps insisting foreigners to live, invest and work in Japan.

Now, Bank of Japan faces the real risk of turning the Yen from a reserve currency into a devalued currency. Their goal of achieving inflation may finally be real in this year. Not in the way that they hope.

3 ( +3 / -0 )

There’s no chance this is over in a few months - so RIP 40% of small firms because the government has shown little interest helping.

3 ( +5 / -2 )

So 40% of small businesses will fold. A disaster for the economy, the government needs to start helping small businesses right now.

5 ( +5 / -0 )

Weaker fails, Stronger remains. Opportunities opens up. Newcommers take the chances. Society evolves. Thats how it was and thats how it is going to be. Unfortunately it will annoyingly disturb the lazy life we are used to live. We will have to buckleup. Wave is coming, time to ride.

-1 ( +0 / -1 )

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