11% of CEOs across the globe fear business closure due to pandemic, YPO surveys says
Almost half of the business executives worldwide sees coronavirus pandemic as a threat to their businesses, but worse part of it is that 11% of them fear that their businesses won’t survive the resulting economic down turn.
YPO, an organization of more than 29,000 chief executives in 130 countries conducted a new global survey last April 15-19 which includes 3,500 chief executives of 2,750 companies. The survey aims to know business leaders’ view in the recent week.
The survey shows that the Outlook of the 84% respondents is different from last month when the confirmed cases of coronavirus was lesser.
CEOs from the hospitality and restaurant sector says that their business may not survive the crisis baking them as the most vulnerable. Meanwhile, some also believes that their business is at risk of failure. This includes 30% of leaders in aerospace and aviation, 19% in wholesale and retails sales and 19% in education.
A bill allocating $484 billion for small businesses and hospitals who have been hit by this crisis have been passed in the U.S Senate on Tuesday. Large public companies also received loans.
64% of executives also sees that a lower revenue is to be expected at least one year from now while 16% of them believe that it would be higher.
“I expected more variability across the regions. Everybody sees the same sharp recession and long recovery.” Scott Mordell, CEO OF YPO said.
This closure in the different industries of businesses due to the pandemic brings the unemployment rate to soaring record levels. 22 million jobs have been completely wiped out.
Meanwhile, an announcement from Georgia Gov. Brian Kemp came last Monday. The state will be allowing some businesses to operate such as gyms, and nail salons. Other states are expected to follow next week.
“What’s been amazing is that I expected more variability across the regions,” Mordell said. “Everybody sees the same sharp recession and long recovery.”
A U-shaped recovery state will be followed by the economy, as 61% of executives believed.
This U-Shape represents a sharp recession and a prolonged recovery. While the 22% anticipate a W-shaped curve which means a double-dip recovery.
“This pandemic will surely serve as a momentous point in history that will impact life and business”, Mordel said.
“I think it’s one of the most incredible experiments humankind has ever done,” Mordell added, “and we shouldn’t lose sight of that.”