Fewer concerns about business survival in most sectors

© Hollandse Hoogte / Marcel van den Bergh
In June 2020, confidence in business continuity under the current economic conditions increased in virtually all non-financial business sectors. In most sectors, over half of the entrepreneurs estimated their business would exist for at least another 12 months. In May, this was only the case for the real estate sector, retail trade and information and communication. This is reported by Statistics Netherlands (CBS) on the basis of a survey held among businesses at the beginning of June about the anticipated consequences of the coronavirus crisis.

The increased confidence in business survival throughout the coronavirus crisis was especially visible in business services last month. Compared to May, the number of business service providers expecting at least 12 more months of continuity rose by 16 percentage points to 57 percent. The sharpest increase within business services was seen in the travel industry (+41 percentage points, to 51 percent). Confidence in business continuity also rose substantially among temp agencies, in legal services and among security firms.

Confidence in survival highest in real estate sector and retail trade

Confidence in business continuity was highest among entrepreneurs engaging in real estate activities; 75 percent were positive about at least one year continuity in June, the same percentage as in May. Among retailers, 69 percent were expecting at least 12 months of continuity, i.e. 4 percentage points up on May.

Lowest confidence in accommodation and food services; culture, sports and recreation

In June, the lowest confidence scores regarding 12 months continuity were found in accommodation and food services (25 percent) and among businesses in culture, sports and recreation (38 percent). Compared to May, the number of entrepreneurs expecting to survive in these sectors was up by 4 and 14 percentage points, respectively. One-third of entrepreneurs in accommodation and food services estimated their business would exist for another 5 months or less in the current economic situation, while 30 percent indicated they were unable to rate their chances of survival. In culture, sports and recreation as well, 30 percent were not able to estimate their survivability, while 19 percent believed their business would continue to exist for another 5 months or less.

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