Russian small businesses in the food and service sectors will face the risk of bankruptcy in 2024. This forecast was given to socialbites.ca by Andrei Loboda, economist and communications director at BitRiver.
“This year poses a significant threat to the micro, small and medium-sized business sector, as its margin (the percentage of a company’s profit in the total cost of a product or service – editor’s note) is in the range of 5-10%. Rising wages and a noticeable tightening of monetary policy will not allow this sector of the economy to effectively and smoothly obtain loans and invest in development,” he said.
The economist also does not expect the situation to end with corporate bankruptcies. According to the expert, enterprises can take preventive measures, such as reducing the volume of business and economic activities, reducing staff. Among the negative factors for entrepreneurs, Loboda listed the high interest rate (loans are becoming more expensive – editor’s note) and fluctuations in the ruble exchange rate. However, the economist noted that most Russian companies have adapted to the current economic situation and remain profitable.
Before that reported He said that small businesses in the border regions received almost 15 billion rubles thanks to government support.
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Source: Gazeta
Ben Stock is a business analyst and writer for “Social Bites”. He offers insightful articles on the latest business news and developments, providing readers with a comprehensive understanding of the business world.