Due to the spread of the 4th pandemic of the novel coronavirus infection (hereinafter referred to as Corona 19), the sales of small business owners in July and August of this year are expected to decrease by more than 40% than originally expected. The photo shows the food alley in Sinchon, Seodaemun-gu, Seoul on the 12th, when the social distancing stage in the metropolitan area was upgraded to stage 4. / Photo = Reporter Jang Dong-gyu
Due to the spread of the 4th pandemic of the novel coronavirus infection (hereinafter referred to as Corona 19), the sales of small business owners in July and August of this year are expected to decrease by more than 40% than originally expected. It was found that 57.3% of small business owners are thinking about closing or closing their business.
According to the Korea Federation of Small and Medium Businesses on the 19th, this was the result of conducting an emergency survey on the situation of small business owners according to the 4th COVID-19 pandemic targeting 300 small businesses (150 each in the lodging business and restaurant business).
As a result of the survey, 67.3% of small business owners in the metropolitan area where social distancing is applied said that their sales in July and August of this year were ‘decreased by more than 40%’ than initially expected. 33.3% answered ‘a decrease of 40% or more and less than 60%’, and 34% answered ‘a decrease of 60% or more.
In the case of small business owners located in provincial areas, if the distance is raised by one step compared to the current social distancing phase, 42.8% of respondents predicted that sales in July and August would decrease by more than 20% and less than 40% compared to expectations. 27.5% answered ‘a decrease of more than 40% and less than 60%’.
Previously, small business owners located in the metropolitan area increased their sales by about 16.4% (45.94 million won) compared to the previous year (45.94 million won) in July and August of this year due to the movement to ease quarantine rules and expand vaccinations before the fourth pandemic spread, 5,143 million won).
However, it was found that 57.3% of small business owners were thinking about closing or closing their business due to difficulties in business following the upgrade of the social distancing stage.
The combined sales of small businesses from July to August averaged 79.19 million won in 2019, before the outbreak of COVID-19, but recorded an average of 42.34 million won in 2020. The proportion of combined sales from July to August in annual sales of small businesses was 27.7% in 2019 and 27.0% in 2020.
Chu Moon-gap, head of economic policy at the Korea Federation of Small and Medium Businesses, said, “The sharp decline in sales of the self-employed and small business owners is inevitable due to the strengthening of social distancing due to the intensification of the 4th COVID-19 pandemic. We need to expand the compensation for losses.”
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