Forty percent of local start-ups threatened with bankruptcy – Poll

ByDonald L. Leech

Jul 28, 2022

According to a survey by the Macao Young Entrepreneurs Incubation Center, some 40 percent of local start-ups will be forced to cease operations if pandemic outbreaks recur in the second half of the year.

More than 70% of companies surveyed said their businesses were severely affected by the pandemic and faced enormous pressure to survive, according to the survey of center members to learn more about the impact on start-ups. local ups of the current pandemic. outbreak, Chinese newspaper Macao Daily reported.

Eighty-two percent of start-ups surveyed said the current assets they hold are not enough to sustain operations for six months, while 40 percent said they will have to shut down their business in the event of a crisis. new pandemic outbreaks in the second half of the year.

When asked how their business is affected by the pandemic, 67% of companies said that the number of orders and turnover had decreased, while 14% of respondents indicated that they had seen a decrease. increased operating costs, leading to problems such as cash shortages.

Due to the customs entry policy, companies that have trade with the Chinese mainland have not been able to conduct business across the border as expected, some of them being even required to pay compensation, depending on the outcome of the investigation.

Meanwhile, regarding the MOP 10 billion ($123 million) aid package recently launched by the Macau government, 64% of businesses rated the measures as “average”.

On July 16, the Macau government pledged an additional MOP 10 billion for financial relief measures for the public and other pandemic-related expenses in light of the current outbreak of COVID-19 in the community, which brings the total value of the financial aid measures to be proposed by the government to MOP 20 billion.

The package of financial aid measures will include grants ranging from MOP 10,000 to MOP 300,000 awarded to eligible employees or self-employed persons, as well as other support measures for local businesses, including subsidized training plans, reimbursements of property tax, tourist tax exemptions, administrative license fee exemptions or refunds, road tax refunds, bank credit interest subsidy schemes for businesses and subsidies for the taxi sector.

According to the survey, more than half of local start-ups have not benefited from the economic aid measures granted to companies for various reasons, such as the period of activity or the type of activity of the companies, while business owners are not considered self-employed and cannot collect grants awarded for these individuals as well.

Therefore, the president of the Macau Young Entrepreneurs Incubation Center, José Chui Sai Peng, expressed his hopes that the government will adjust the assessment indicators in future economic aid plans, in order to provide more precise assistance. to small, medium and micro-enterprises in different industries.

The Centre’s CEO, Lam Ka Vai, stressed that the government should lower the aid threshold and allocate more resources to help local SMEs.

In addition, authorities should set up an appeal mechanism for SMEs deemed ineligible for economic aid, to reassess whether they have met the standard of receiving the aid, Lam added.