Abstract
The highly contagious novel coronavirus, also known as COVID-19, is believed to have first originated in December, 2019 in Wuhan, Hubei Province, China. On the 11th of March 2020, the World Health Organization (WHO) declared it a global pandemic. Since the first known death from COVID-19 on 11 January 2020, the virus has spread to 216 countries or territories, killed 491,128 people and infected 9,653,048 people. As of 28 June 2020, there are 7,595 reported cases and 104 deaths in Australia (World Health Organization, 2020). There are currently no approved treatments or vaccines for the virus. In order to mitigate the impacts of the coronavirus pandemic, federal, state and local governments enacted a range of precautionary and productive measures including stimulus packages, border and business restrictions, and wage subsidy initiatives. Camden Council announced a $16.8 million support package for residents and local businesses who have suffered as a result of the pandemic. The Camden Business Impact Survey was developed by the Camden Region Economic Taskforce (CRET) in partnership with Camden Council to better understand the impacts of that coronavirus pandemic on local business and assist them in the future. The survey contained questions about business location and industry, number of employees pre-/post-COVID-19, and the impact of COVID-19 on revenue/sales, business costs, number of customers, and cash flow. Data was collected from 171 respondents over a one-month period. Of the businesses surveyed, 92% were located in the Camden local government area. The industry with the highest number of respondents was retail trade, followed by professional, scientific and technical services and construction. Over half of the businesses were micro businesses, meaning they have 0-4 employees, and an additional 35% were small businesses, meaning they have 5-19 employees. Forty-six percent of respondents reported having fewer employees after the COVID-19 pandemic while 3.5% reported having more. The industries affected most by employee reduction were accommodation and food services and arts and recreation services, with 88% and 70% of businesses, respectively, reporting a decrease in employees. Nearly half of the businesses surveyed had been operating for over ten years. Seventy-three percent of respondents conveyed that COVID-19 had a negative impact on their sales or revenues whereas 27% reported a positive impact on sales or revenue. The estimated percentage change to respondents’ businesses’ sales/revenue to date was an average drop of 26% with a median drop of 40%. For 50% of respondents the estimated percentage change in business costs due to the impact of COVID-19 was zero. About 75% of businesses surveyed reported a decrease in the number of customers during COVID-19. Notably, two thirds of businesses in the accommodation and food services sector saw more than a 50% drop in the number of customers. Electricity, gas and waste services businesses had the number of customers’ increase by up to 50%. The mean drop in cash flow for respondents was 25% and the median was 36%. The industries most affected by drops in cash flow were wholesale trade and financial and insurance services. Forty percent of surveyed health care and social assistance, construction, administrative and support services had their cash flow increase as a result of COVID-19. Respondents were invited to provide further comments regarding the impact of COVID-19 on their business, of which 82% chose to participate. For accommodation and food services, comments were made on the longevity of the negative effects on their business and the difficulties trying to adapt to the new circumstances, often at the expense of revenue. Survey respondents noted that the forced shutdowns enacted by Federal and State governments negatively impacted their revenues, and others described having to move online to maintain a presence. Many businesses across sectors reported a decrease in demand for goods and services whereas those in the professional, scientific and technical services industry noted an increase. Businesses in the child care sector specifically cited the Federal Government’s child care subsidy as positively impacting their business. Those in retail trade detailed difficulties around managing customers’ anxieties, enforcing social distancing measures and managing the number of people in the shop. When asked about their views on the continued viability of their business in the very short term (1 to 3 months) and the short term (6 to 12 months), many were confident that their businesses would continue to be viable in the very short term, but only one third were confident that their businesses would be viable in the short term. The level of confidence is related to the length of time that they had been in business, with half of businesses that had been operating for over 10 years feeling confident they would continue to operate in one year and over half that had been operating only 6 to 12 months not feeling confident they would be able to operate over the short term. The top three immediate priorities for businesses, in order, are: adopting new systems/practices to ensure they continue to operate, paying for business expenses, and ensuring continued supply of the goods and services that the business requires to operate. In 3 months’ time, the top three priorities are: paying for business expenses, ensuring that the owner/s have income from business, and expanding into new markets. The priorities were the same for 6 months’ time, however ‘paying for business expenses’ took precedence over ‘ensuring that the owner/s have income from business’. Many businesses stated that they would introduce or increase online activity for sales or marketing as well as introduce new products/services and more efficient ways of using resources as a result of the COVID-19 pandemic. The most common government support measure accessed by respondents was JobKeeper, with 40% having accessed it and a further 52 businesses having enquired but not accessed. The kinds of information and support that respondents indicated would be most helpful were support to promote the business, followed by digital skills training, financial support options, and help understanding the government support packages. While this has clearly been a very challenging time for many businesses in the Camden local government area (LGA), these businesses are also resourceful and interested in effective, long-term strategies for managing difficult problems. The survey helps to identify the needs of this community to ensure it can survive despite the huge changes and challenges presented as a result of the COVID-19 pandemic.
Original language | English |
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Place of Publication | Penrith, N.S.W. |
Publisher | Western Sydney University |
Number of pages | 42 |
Publication status | Published - 2020 |
Keywords
- COVID-19 (disease)
- Camden (N.S.W.). Council
- economic aspects