More than half of GB businesses believe they won’t survive into the next quarter

A survey conducted by the Grand Bahama Chamber of Commerce has found that 51.1 percent of businesses question if they can remain in business for the next three to six months and expect to struggle to meet obligations and retain staffing levels.

On the other hand, 48.6 percent of respondents said they expect to sustain employees and operations or remain ahead of the business they had in 2020.

The GBCC conducted its 2020 COVID Business Survey, the fourth of its kind since Hurricane Dorian and the start of the pandemic, in April canvassing 72 business which responded to assess the state and scope of current operations, employment engagement, critical needs and outlooks in the business community on the island.

The majority of businesses that responded were in the retail sector (22.2 percent), while 12.5 percent represented the tourism sector.

Of the businesses that responded, approximately 47 percent said they are operating as normal in terms of hours/services, while 39 percent said they are falling short of sustaining business and 15 percent said they are not operating at all at this time.

“Fifty-four percent of respondents that are not currently open (15 percent of total) are uncertain if they will reopen. One respondent (one percent of respondents) not currently open did not plan to reopen,” the GBCC stated.

“Some respondents who answered they were open but with limited operations and unable to meet obligations, also responded they plan to resume operations.”

Grand Bahama’s economy was already fragile before Category 5 Hurricane Dorian devastated the eastern portion of the island in September 2019.

Months later the COVID-19 pandemic forced the closure of businesses, leaving many furloughed.

Nearly 63 percent of respondents stated that more than a year into the pandemic, none of their staff is furloughed and 42 percent noted they were able to keep their staff engaged throughout the pandemic.

Approximately 14 percent of respondents stated that all their staff remain furloughed, while 27 percent noted they have returned some staff so work, but 50 percent or more are still furloughed.

“Fifty-eight percent have returned staff with their full salary before the pandemic, while 18.6 percent said they reduced salaries by 50 percent.”

Asked if their businesses are thriving more now than before the COVID-19 pandemic, 4.2 percent said their businesses were doing significantly better than pre-COVID.

Around 32 percent said their businesses were doing either the same as or slightly better than before the COVID-19 pandemic and 48.6 percent said their businesses are doing significantly worse or in jeopardy of not surviving.

Despite the grim outlook held by the majority, approximately 43 percent of respondents were optimistic that their businesses would grow over the next six months to a year and 25 percent said they are very concerned and expect continued decline.

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source https://thenassauguardian.com/more-than-half-of-gb-businesses-believe-they-wont-survive-into-the-next-quarter/