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Transportation, gambling, and the IT industries in Romania were among the areas that recorded increases between 100% and 300% during the pandemic, despite the fact that recessions usually impact all industries in an economy.
“Recessions are periods of general decline in economic activity, and key indicators of this decline are the unemployment rate and GDP. Recessions have an impact on all types of businesses, large and small, due to tightening credit conditions, slower demand and general fear and uncertainty. According to an MKor study, 91% of companies feel affected by the crisis caused by the Covid-19 pandemic, with an average total impact of -10.2% for 2020. The average impact estimated by a typical organization is 100,000 euros, with up to 100% of turnover. In fact, the more pessimistic the companies’ representatives are regarding the evolution for 2020, the more the estimated value of the impact is increasing “, shows a communiqué sent on Thursday by the organization Elite Business Club Romania, according to Agerpres.
The most visible effects of the COVID-19 pandemic are the reduction in turnover and the impact produced by the suspension of a company’s activities.
“Smaller businesses that do not have access to the financial and capital markets and are less likely to benefit from government rescue plans, and often face particular challenges during a recession. However, some businesses managed to grow through investment when others preferred to freeze activities or close down shop. I strongly believe that entrepreneurship means taking on challenges even in periods of crisis”, Bianca Tudor said, founder & president of Elite Business Club Romania.
According to a study conducted by CV Expert Contabil, during the pandemic, there were also areas that excelled such as transportation, which recorded the highest revenue during the state of alert, with an increase of up to 100% in turnover compared to 2019. The gambling industry also has a monopoly on the market, and not only created jobs, but saw revenues increase by up to 300% compared to 2019; HR services faced a testing period in 2020, as HR companies and HR departments had to keep up with the multitude of changes, but also with the wave of new jobs and resignations. HR companies registered a 70% increase in revenues compared to 2019.
The cited study also shows that IT service-software solutions have increased by 80% compared to 2019, offering services and solutions for telecommuting. The production and sale of furniture and ergonomic chairs had doubled their turnover compared to 2019, and living space arrangements represent a segment that increased by 56% compared to 2019.
Last but not least, the retail industry grew by up to 39% in 2020, recording the best revenues from long-term rental and sale of properties, while the medical services segment was the most in-demand, and best placed in the market.
“In the current economic environment, companies can today be in a favorable position for long-term success only by adopting a new business strategy, by adaptation to the times we live in, and by effecting concrete actions that have helped some of the companies to be very successful even in the darkest periods of the pandemic. Of course, the context played a crucial role. Through managerial control we ensure the protection and good use of financial and human resources and their correlation with objectives, improving the flow of information and increasing intelligibility, risk management, fraud prevention, and detection and document quality. It about preventing errors and irregularities, and about eliminating the causes that determine them and of improving the controlled activities “, Cristina Vintilă – CEO CV Expert Contabil, explains in the quoted communiqué.
Translated from Romanian by Service For Life S.R.L.