A survey by the Central Bank and the ESRI has found the impact of Covid-19 on small and medium sized enterprises (SMEs) has been "profound".' The survey reveals that almost a quarter of SMEs could be vulnerable to liquidation when insolvency criteria begin to normalise.
The survey, carried out between July and September last year, found that over 70% of firms had seen sales fall during the lockdown.
The median, or mid-point, fall was 25% but it was as high as 65% in the hotels and restaurants sector. SMEs from all sectors were affected, the report showed.
It also found there was no correlation between a company's past performance and what happened to it during lockdown. Company expenditure fell by 8.5% on average with 40% of companies