Micro-enterprises post lower-than-expected revenue in first quarter
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MORE THAN half of micro-enterprises in eight provinces reported that their revenues were less than expected in the first quarter of this year, according to a survey conducted by Dhurakij Pundit University.
Among those reporting lower revenue, the average drop ranged from 18 to 32 per cent. However, about a third of respondents believed that their revenues would improve in the second quarter.
The university polled 428 small and medium-sized enterprises based in eight provinces from March 25 to April 8. The respondents were asked about their business performance in the first quarter, measures employed to deal with the current economic slowdown, their expectations for the second quarter and important obstacles to overcome in the second quarter.
Respondents were asked to compare their revenues in the first quarter to their expectations. Among micro-enterprises (five employees or fewer), 54 per cent said revenues were lower than expected; 34 per cent about the same as expected; and 12 per cent better than expected.
Among small enterprise (six to 50 employees), 44 per cent said revenues were less than expected; 38 per cent about the same as expected; and 18 per cent better than expected.
Among medium-sized enterprises (51 to 200 employees), 36 per cent said revenues were less than expected; 47 per cent about the same as expected; and 17 per cent better than expected.
Those reporting a reduction in revenues were asked to provide the magnitude of the drop in percentage terms as compared with the first quarter of 2014. On average, the drop was around 32 per cent for micro-enterprises, 24 per cent for small enterprises and 18 per cent for medium-sized enterprises.
On the adjustment measures employed in the first quarter, the most common were price discounts, marketing through social media, improved service, gifts and gift vouchers, and improvements of employees’ skills. Respondents that used these measures rated their effectiveness “good” to “very good”.
The respondents also provided their expectations on revenue growth in the second quarter as compared with the first. Among micro-enterprises, 23 per cent expected revenues to improve; 47 per cent about the same; and 30 per cent worse.
Among small enterprises, 29 per cent expected revenues to improve; 49 per cent about the same; and 22 per cent worse.
Among medium-sized enterprises, 31 per cent expected their revenues to improve; 55 per cent about the same; and 14 per cent worse.
The five most important obstacles in the second quarter were reduced consumer spending, liquidity and access to finance, demand from overseas, drought, and costs of raw materials and transport.
