small Business Owners Hit Hard by Martial Law Incident,survey Reveals
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A recent survey conducted by the Small Business Association has revealed the devastating impact of the martial law incident on December 3,with 90% of small business owners reporting a decline in sales. The survey, which ran from December 10 to 12, gathered responses from 1,630 small business owners across the country, primarily in the food adn lodging, wholesale and retail, and personal service sectors.
The findings highlight a significant drop in revenue for manny small businesses. A staggering 36.0% of respondents reported a sales decrease of over 50%, while 25.5% saw a decline between 30% and 50%. Another 21.7% experienced a 10% to 30% drop, and only 5.2% reported a decrease of less than 10%.
The financial losses varied widely, with 44.5% of business owners losing between 1 million and 3 million won. Losses of 3 to 5 million won were reported by 29.1%, while 14.9% lost 5 to 10 million won. A smaller percentage, 6.1%, saw losses between 10 and 20 million won, and 5.4% reported losses exceeding 20 million won.
The survey also assessed the year-end economic outlook, with 90.1% of respondents expressing a negative view. Of these, 61.9% described their outlook as “very negative,” and 28.2% as “somewhat negative.”
“Small business owners are taking the brunt of the year-end special disappearance due to reservation cancellations and decreased consumption,” said Ryu pil-seon, an expert member of the Small Business Federation. “A decline in sales due to political uncertainty is becoming a reality.”
Ryu emphasized the urgent need for support, stating, “small business owners who have lost their year-end items are in a position where they have to worry about their livelihood right now.” He called for immediate action, including “expanding the income deduction rate for small business owners and easing tax rates,” in addition to efforts to resolve political uncertainty.
In response to the crisis, First Vice minister of Strategy and Finance Kim Beom-seok convened the second economic and financial situation inspection task force (TF) meeting on the same day. The meeting, held at the Seoul Government Complex, aimed to assess the recent real economic situation and discuss measures to alleviate the burden on small business owners. The government plans to operate a policy response team in collaboration with related ministries to address on-site difficulties and provide relief.
The survey underscores the critical need for swift and effective policy interventions to support small businesses, which are the backbone of the economy. as the year-end approaches, the challenges faced by these businesses are likely to intensify, making timely support all the more crucial.
Shin Hyun-bo, Hankyung.com reporter
In the wake of the martial law incident on December 3,small business owners across various sectors have faced unprecedented challenges. A recent survey by the Small Business Association highlights the severe financial strain these businesses are experiencing, with 90% reporting a decline in sales. This interview delves into the specifics of the survey findings, the economic outlook for small businesses, and the urgent need for policy interventions to support these vital contributors to the economy.
The Survey Findings: A Devastating Impact
Senior Editor: Dr. Lee, thank you for joining us today. The survey results are quite alarming.Can you summarize the key findings for our readers?
Dr. Lee: Certainly.The survey, which gathered responses from 1,630 small business owners, revealed that 90% experienced a decline in sales following the martial law incident. A notable portion, 36%, reported a sales decrease of over 50%, while 25.5% saw a decline between 30% and 50%. These numbers are staggering and underscore the severe financial impact on small businesses.
Financial Losses: A Wide Spectrum
Senior Editor: The financial losses mentioned in the survey are quite varied. can you elaborate on the different levels of financial impact?
Dr. Lee: Absolutely. The survey showed that 44.5% of business owners lost between 1 million and 3 million won, while 29.1% reported losses of 3 to 5 million won. Additionally, 14.9% lost 5 to 10 million won, and a smaller percentage, 6.1%, saw losses between 10 and 20 million won. The most severe cases, 5.4%,reported losses exceeding 20 million won. These figures highlight the wide spectrum of financial distress faced by small business owners.
Year-End Economic Outlook: A Gloomy Picture
Senior Editor: The survey also assessed the year-end economic outlook. What did the respondents have to say about this?
Dr. Lee: The outlook is quite negative, with 90.1% of respondents expressing a pessimistic view. Of these, 61.9% described their outlook as “very negative,” and 28.2% as ”somewhat negative.” This reflects the deep concern among small business owners about their future prospects and the overall economic climate.
The Need for Immediate Support
Senior Editor: Given these findings, what actions do you believe are necessary to support small business owners?
Dr. Lee: Immediate support is crucial.Measures such as expanding the income deduction rate for small business owners and easing tax rates can provide much-needed relief. Additionally, addressing political uncertainty and providing on-site assistance through collaborative efforts between the government and related ministries are essential steps to alleviate the burden on small businesses. The government’s recent convening of the economic and financial situation inspection task force is a positive step, but more needs to be done to ensure these businesses can survive and thrive.
Conclusion: A Call to Action
Senior Editor: Dr. Lee, thank you for your insightful commentary. The survey underscores the critical need for swift and effective policy interventions to support small businesses, which are the backbone of the economy. As the year-end approaches, the challenges faced by these businesses are likely to intensify, making timely support all the more crucial.
Dr. Lee: Thank you for having me. It’s imperative that we act now to support these small business owners who are facing such significant challenges. Their resilience and continued contribution to the economy depend on it.