Half of small and medium-sized companies that provide nearly ⅔ of European jobs fear for their survival in the coming year, according to a survey by management consultancy McKinsey.
The survey was done in August, before the second wave of coronavirus prompted a new set of restrictions on economic and social activity.
The results came amid signs of an impending business insolvency in Europe and as the IMF urged governments to raise state support.
The survey found that 55% of 2,200 companies across France, Italy, Britain, Germany, and Spain expect to shut down by September 2021 if their revenues remain the same.
Those companies employ more than 90 million people in Europe. However, their small size raises their vulnerability to a cash flow crisis.
Considering the current situation, one in 10 small and medium-sized companies, or enterprises with less than 250 employees, will file for bankruptcy in six months.
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