Rising costs, falling turnover: the war in Ukraine is impacting SMEs, according to the UCM

The war in Ukraine is leading to higher production costs for the independents in Wallonia and Brussels, as well as a drop in their turnover, warned the Union of the Middle Classes on Thursday. The professional organization surveyed more than 1,600 self-employed and SME managers on the consequences of the Russian invasion of Ukraine on their activity.

The majority (62%) of respondents say that the war in Ukraine impacts their activity, either directly (21% of respondents) or indirectly (41.5%). The increase in the prices of energy and raw materials explain this impact, but not only: among the French-speaking entrepreneurs surveyed, a third noted delays in the delivery of raw materials and 23.5% an interruption in deliveries.

62% suffer from rising production costs

Thus, if 62% of respondents suffer from an increase in production costs, 40% also experience a reduction in their turnover. “This result was less expected“, notes the UCM. Only 38% of those polled have not yet had any impact on their turnover, while a quarter estimates the drop to be between 10 and 25%, and 19% to a decrease of less than 10%. .

Two out of five respondents (40%) consider that their activity is exposed or very exposed to the war in Ukraine.

One in five respondents (21%) also expects to have to put some of its staff on temporary unemployment. If this solution were not possible, 70.7% of respondents forced to reduce their activity say they would have to lay off. The UCM therefore welcomes the extension of unemployment for force majeure until June 30. “It is an absolute necessity.“

If the UCM is also delighted with the measures to support the purchasing power of households, which will make it possible to curb inflation “and therefore the indexation of wages“, the organization says it is waiting”measures in favor of companies“.

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