Majority of high-ranking business managers confirm that corporate revenues have already declined by over 25 per cent during the lockdown and businesses will take more than a year to return to normalcy, according to a survey. The survey titled 'Covid-19 and Your Wealth', conducted by online investment provider Scripbox, reveals the impact of the lockdown on company revenues and job losses. Nearly 67 per cent of top bosses, business owners and founders surveyed said that company revenues have already declined by more than 25 per cent during the lockdown.
Further, all respondents believe that business will return to normal only by 2021, while 22 per cent business leaders expect it to take more than a year, from when the lockdown ends. The online survey was conducted with Scripbox customers during May 1-15, 2020. Nearly 1,200 respondents consisting of business leaders took part in the survey. Of these, 54 per cent work in large corporates, 32 per cent in small and medium-sized enterprises (SMEs) and 14 per cent in startups.
The survey noted that downward spiral in business revenues was accompanied by job losses. 90 per cent respondents have witnessed less than 25 per cent job reductions, while the remaining 10 percent have seen more than a 25 per cent job cuts at their company. "The negative impact on jobs is the highest among employees of small and medium businesses," the survey noted.
According to the survey, freelancers have been the worst-affected by the lockdown as 66 per cent of them reported more than a 25 per cent reduction in their revenues, out of which 35 per cent said that their revenues have dried up altogether. "The old adage of 'Saving for a Rainy Day', could not be more true than in the COVID-19 era. The advice we give to all our customers is to start early and stay invested for the long term and to let the power of compounding help them to grow their wealth," said Atul Shinghal, Founder and CEO of Scripbox.
The current situation with the stock markets and wealth management in general, will be short-lived, as the markets recover in the medium term. These are short-term fluctuations, lows will be followed by highs, he added.