Mahmutović: Around 800 surveyed entrepreneurs in KS expect losses exceeding 196 million KM

(Patria) - At today's regular joint press conference of the Government and the Civil Protection Headquarters of Sarajevo Canton, the President of the KS Chamber of Commerce, Muamer Mahmutović, addressed the public, stating, among other things, that around 800 surveyed business entities in the Canton expect losses exceeding 196 million KM.

“The Cantonal Chamber of Commerce, in cooperation with the Ministry of Economy of KS, and based on the conclusion of the Coordination Body, recently conducted a survey among business entities in the Canton regarding the problems they are facing in the midst of the coronavirus pandemic, in order to find solutions for immediate aid to the economy,” said Mahmutović.

He added that, as agreed, the Chamber is submitting a preliminary report to the Coordination Body of the Sarajevo Canton Government for proposing measures to protect and recover the economy and improve the position of employees and entrepreneurs affected by the crisis caused by the coronavirus pandemic, based on 815 completed online questionnaires.

“Of the total number of responses received, 79.7 percent expect assistance from competent authorities in the form of co-financing employee wages, 50.2 percent in the form of grants to maintain business operations, 32.2 percent in the form of loan payment deferrals, 21.1 percent expect the provision of new favorable loans, and 22.8 percent expect compensation for incurred damages.

Other measures that would be beneficial to the economy at this time were also proposed,” Mahmutović specified.

Regarding employee layoffs caused by the crisis, the president of the chamber stated that 56.5 percent of them still do not know if they will undertake this unpopular activity, and that it will depend on the duration of the crisis.

“27.5% of respondents stated that they will lay off their employees, 6.7% stated that they will not lay off employees, and the remaining 9.3% responded in some other form to the question asked,” Mahmutović informed the public in detail about the results of the survey conducted among entrepreneurs.

On this occasion, he pointed out that the total estimated business losses for the period of April, May, and June 2020, compared to the same period in 2019, for all surveyed business entities in the mentioned sample will amount to 196,965,731 KM.

“The economic crisis that is inevitably coming will, due to market disruptions caused by the coronavirus pandemic, primarily affect micro and small enterprises and self-employed individuals in the first wave, as well as employees in the hospitality industry. Immediately after that, all other business entities will be affected, so appropriate measures should be taken in that light, in order to at least partially mitigate the consequences and for employers to retain their employees,” Mahmutović proposed.

He also invited other business entities to fill out the questionnaire, which is available on the website of the Chamber of Commerce of Sarajevo Canton www.pksa.ba, and to provide their suggestions.