Business Outlook and Financing Alternatives of Finnish Entrepreneurs During the COVID-19 Crisis

Mikael Paaso, Vesa Pursiainen, Sami Torstila

Research output: Contribution to journalArticleScientificpeer-review

Abstract

This paper reports findings from a survey of 1,008 Finnish small-and-medium-sized enter-prises (SMEs) on their business outlook and financing alternatives during the COVID-19 crisis as of June 2020. Sales have dropped by an average of 25%. The decline in revenues is generally uncorrelated with the number of coronavirus cases in a municipality, except in the hospitality industry and the arts, entertainment and recreation industry. 54% of respondents have applied for public subsidies, while only 16% have applied for a new loan from the bank. Across the cross-section of firms, firms reporting a larger loss of revenues and with a more precarious financial position at the end of 2019 (high debt and/or low cash) were more likely to apply for both direct grants as well as loans.
Original languageEnglish
Pages (from-to)59-77
JournalNordic Journal of Business
Publication statusPublished - 2021
MoE publication typeA1 Journal article-refereed

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