“NOT only are profits rising, but in some industries, the leading firms are winning bigger than ever before,” wrote the authors of a McKinsey (MGI) study featured in the October 2015 issue of the Harvard Business Review.
The May 2020 study of the Asian Development Bank’s (ADB) financial sector specialist Shigehiro Shinizaki says that 70.6 percent of micro, small and medium enterprises (MSMEs) were forced to temporarily close owing to the pandemic. In the study, almost 6 out of 10 (58.8 percent) MSMEs reported zero income while 28 percent said that revenues fell over 30 percent. Moreover, 78.8 percent of the MSMEs have either no cash or savings or only have a month worth of working capital. A recent February 2021 ADB working paper on the impact of Covid-19 on MSMEs, because of the sharp drop in revenue, says “MSMEs began laying off employees at an early stage (March 2020 ECQ) to survive (68.0 percent of micro, 59.5 percent of small, and 78.6 percent of medium-sized firms).”
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