New data on just how many businesses are struggling is grim. Very grim.
I think I would describe the current mood as ‘delusional’.
People are feeling brighter about the outlook. Covid concerns are easing and things are looking up. And it’s true, there are reasons to be optimistic.
But to a point.
And I think we got conditioned – we spent so long focusing on the worst case scenario that now we’re looking at the not-quite-the-worst-case scenario, it’s looking pretty good in comparison.
But it’s not looking pretty good. It’s looking awful. Yes, it’s looking better, but it’s still looking awful.
I mean, take a look at what’s happening to businesses around the country. Simon Reynolds, the founder of The Fortune Institute, says that we are, “heading for a small business disaster”:
“We are heading for a small business disaster”…
“The government has offered them temporary money, but that will run out fast.
“In biblical terms, the government is handing out fish, instead of teaching small business owners how to [catch] fish.”
Reynolds said what small businesses desperately needed was training on how to rebuild, or the government risks tens of thousands businesses biting the dust.
“Covid-19 will kill 1000 times more Australian businesses than it will kill people,” Reynolds said.
“We need more than JobKeeper. We need ‘Business Keeper’. We’ve got to have a program that teaches Aussie small business how to recover from the virus”…
I think this is probably right. This is a massive change to the business landscape. The game has changed. Most small businesses are just trying to keep on top of their cashflow.
They don’t have time to step back and assess the bigger picture. They don’t have the resources to strategize and reposition.
But that is what they’ll need to do.
But this is not just a small-business problem either. According to a special survey by the ABS, almost three-quarters of all businesses, including medium and large businesses, are dealing with major revenue disruptions.
COVID-19 has forced 70% of Australian businesses to change how they operate and 72% have suffered revenue declines…
By employment size, 71% of small businesses (i.e. 0-19 persons employed) reported that revenue had decreased as a result of COVID-19 compared with 78% of medium businesses (i.e. 20-199 persons employed) and 73% of large businesses (i.e. 200 or more persons employed)…
The largest proportions of businesses that reported operating under modified conditions were in the Information media and telecommunications (96%), Health care and social assistance (93%), Accommodation and food services (92%) and Education and training (91%) industries.
The survey also found that almost three quarters of businesses accessed support measures as a result of COVID-19. This included accessing wage subsidies (55%) and other government support measures (38%)…
That picture is grim af.
Three quarters of the economy is on some kind of government life-support.
Given we know you need to have seen major disruptions to your revenue to be eligible, we’re talking about three-quarters of the economy going through a life-threatening disruption to revenue.
They’ll survive… but perhaps only as long as the money is flowing.
At some point we’ll have to face up to the challenge of getting three quarters of the economy off government life support.
That’s not going to be easy and its certainly not going to be painless.
And so yes, things are looking better. We’ve avoided the worst-case scenario.
But let’s not kid ourselves either.
There’s a long road ahead.
JG.
Helena says
Covid-19 is about the Government/UN controlling people through FEAR and forcing them to be reliant and subservient to the Government.
Three quarters of the economy’s on some kind ofGovernment Life Support? It is Exactly what was wanted.
Australia followed the Example of other countries because they are all needed to form the One World Government that is coming unless people DO NOT COMPLY.
Think about it. 100 people die in Australia, way more have died of the Flu,, Suicide, other Health Conditions and death of Small businesses because of the actions that the Government have taken. IT DOES NOT ADD UP. It is not rational.
There will be a second wave as many as is needed for what is needed to be accomplished.
It is a shame because Australia of all the Countries in the world has such potential if our leaders were not tied implementing the world Agenda.
l have a small business that is a Private Foundation so am a Sovereign Entity and so do not pay Taxes and GST and refuse to be reliant on the Government.
Many businesses have and many more will die, people will become totally reliant on the Government, and will feel like they WILL HAVE TO DO WHAT THE GOVERNMENT TELLS THEM TO DO, or no money, support which will be the trade off. Freedom will be gone for many. Many may think that the Government is saving them, but are we in a democracy or Fascism? Can you trust the Government to do the right thing by the people? The Australian Government is a Corporation registered in Washington, do you think that that the share holders are thinking about YOU?
The Sheep may be happy in their allowed paddock until its time for the slaughter house, ignorance is bliss as the saying goes. You do not need a brain if you are not using it and freedom is not a high priority on some peoples list.
Some people listen to the information being told to them, others see and learn through real life experience and notice a contradiction and are not thinking that the government is our saviour.
l have been writing Freedom. of Information request into the Government and the answers are very telling. No Safety test documents available for the Flu Shots, no accurate Covid-19 test in existence, No safety Tests done for 5G. waiting on others. Email me if you want me to email them to you on [email protected].
l for one will say ” l tried my best” to my children when they ask why we let the world go to the Dictator/Dogs.