COVID-19 Implications for business

Restriction of business activities, social distancing and other measures taken by governments around the world created some unusual challenges for businesses. The main problems that companies are currently facing are: Lack of customrs, lack of liquidity, and difficulties in paying wages.

Lack of customers and lack of liquidity due to COVID-19 pandemic, turned into the most problematic issues faced by all companies regardless of their size. Difficulties in meeting tax obligations were more challenging for small companies, while big companies had difficulty in paying wages.

Due to the COVID-19 emergency situation, companies in Albania (52%), mainly in industry, encountered problems with the supply of raw materials from imports, while some of them are considering domestic sources as an option. Due to the pandemic, the classic work routine changed drastically and businesses were not prepared to react.

Regardless of size, most companies could not take any action to address the problems that arise from the inability of workers to show up to work.

Companies with a turnover of over 14 million ALL had to fire employees as a measure in facing the problems that arose. Small companies allowed work from home, 9% of other companies are mostly family businesses and self-employed.

COVID-19 is a serious threat to business continuity.

Some of the measures that many companies take to ensure business continuity are:

• Avail on accumulated personal income

• Cost cuts

• Bank loans