SMEs remain under pressure due to Corona

Despite business loans and the option for short-time work, job cuts have occurred. Specifically, 9.3 percent of the companies surveyed in Switzerland reported that staff had been cut. However, this balances out somewhat, at least in terms of numbers, as 6.7 percent of companies overall have hired new staff. There are also some other bright spots. For example, 14.7 percent of businesses overall have benefited from Corona. And almost a quarter (23.3 %) have remained unaffected by the pandemic.

Corona changes everyday working life in companies

COVID-19 is changing everyday working life in many companies. In the medium and long term, 40.7 percent see an increase in home offices. 36.7 percent recognize an increased awareness of health issues, and one-third (32%) anticipate an increased use of digital tools and programs. One in four (24%) expect an increased awareness of environmental concerns.

Digitization is advancing more rapidly

More than half of all respondents (54%) stated that the crisis is driving digitization forward in their companies. For 32 percent of them, even significantly. Video telephony is now part of everyday working life for 61.5 percent of respondents. One in three (33.9%) uses digital platforms, for example to manage procurement purchases. And almost as many (30%) have cloud systems in the company. Even their own online formats such as webinars were launched by 14.6 percent at short notice after the outbreak of the pandemic. For Peter F. Schmid, CEO of Visable, this is an irreversible development: "Without the timely, targeted use of digital tools, a large number of SMEs in Europe would have to fear for their existence. To put it bluntly, this means that only those who digitize will survive this crisis."

Marketing budgets shrink - online is strengthened

Almost one in four companies (22.7%) are planning for the coming year with a lower marketing budget than in 2020 to compensate for sales losses incurred during the crisis. Budgets are increasingly shifting to online channels. 55.9 percent of the decision-makers surveyed want to rely more on online marketing in the coming year.

"One in four trade fairs will no longer exist after the crisis"

The trade show industry has been hit particularly hard: Around one-third (31%) of those who have previously attended trade shows are no longer planning to attend or participate in trade shows in the coming year. Only 15 percent still see a trade show appearance in general as an important sales tool. Peter F. Schmid sees himself confirmed by the results: "My forecast is that one in four trade fairs will no longer exist after the crisis. Even before the onset of the Corona crisis, there was discussion about the appropriateness of many trade shows worldwide. In times of digitalization, it is neither timely nor ecologically and economically sensible to transport complex goods such as machines halfway around the world to exhibit them for one or two weeks at a leading trade fair." Virtual trade shows could be an alternative: 19.6 percent of those surveyed want to use the option for their company in the future.

Local and national trading partners gain in importance 

With the COVID-19-induced shutdown, many companies are being forced to change their purchasing strategy. Established supply chains are breaking down and bottlenecks must be overcome with new partners. For this reason, a quarter of respondents (24%) are once again focusing more on local, national suppliers and suppliers from surrounding European markets with shorter supply routes. 9.3 percent are even actively avoiding cooperation with suppliers from the USA or Asia.

Companies in Germany less affected by Corona

Switzerland and Austria appear to be significantly more affected by the Corona crisis than Germany. While only one in four respondents in Germany (25.3 %) report significant revenue losses, one third of companies in Switzerland and Austria are affected. But in Switzerland and Austria, too, the Corona crisis is making a significant contribution to accelerating digitization in companies. In Germany, 44 percent of respondents agreed with this statement. As in Switzerland, even more than half (54 percent) in Austria are of this opinion. Whereas 44 percent of the German respondents rated the way things work in the company as "business as usual," only 24.7 percent in Switzerland and only 22 percent in Austria agreed with this statement.