Are SMEs Fully Affected by the Crisis?
16 March 2009
Read by 1491 persons
A recent seminar on the theme "SMEs facing the crisis" highlighted the severe impact of external turbulence on Tunisian SMEs.
Many Tunisian businesses have significant funding needs to maintain operating cash flow and investments. Analysts believe the situation could worsen for these SMEs, impacting both employment and investment projects.
The current economic climate has unsurprisingly slowed SME activity, directly affecting their revenue growth. All sectors report being affected, but maintain a degree of optimism regarding future development. For some Tunisian SMEs, the main obstacles highlighted at the seminar were the lack of visibility regarding future demand. This is due to their strong relationships with foreign buyers who are also struggling.
Many of these buyers are unable to fulfill orders due to their own financial difficulties, which are now impacting Tunisian businesses. A significant portion of the problems faced by these SMEs stems from cancelled orders, for products already in production.
Export-oriented businesses are experiencing a serious slowdown in activity. These companies are more vulnerable to financial difficulties which could lead to reduced working hours and job losses.
The seminar also reviewed government measures and support plans designed to mitigate the effects of the crisis on businesses. Measures in place for severely affected businesses include both social and financial support.
Published March 12, 2009
Posted online March 16, 2009
tunisieaffaire.com
Many Tunisian businesses have significant funding needs to maintain operating cash flow and investments. Analysts believe the situation could worsen for these SMEs, impacting both employment and investment projects.
The current economic climate has unsurprisingly slowed SME activity, directly affecting their revenue growth. All sectors report being affected, but maintain a degree of optimism regarding future development. For some Tunisian SMEs, the main obstacles highlighted at the seminar were the lack of visibility regarding future demand. This is due to their strong relationships with foreign buyers who are also struggling.
Many of these buyers are unable to fulfill orders due to their own financial difficulties, which are now impacting Tunisian businesses. A significant portion of the problems faced by these SMEs stems from cancelled orders, for products already in production.
Export-oriented businesses are experiencing a serious slowdown in activity. These companies are more vulnerable to financial difficulties which could lead to reduced working hours and job losses.
The seminar also reviewed government measures and support plans designed to mitigate the effects of the crisis on businesses. Measures in place for severely affected businesses include both social and financial support.
Published March 12, 2009
Posted online March 16, 2009
tunisieaffaire.com
