May 7 (SeeNews) - Small and medium-sized enterprises (SMEs) active in the entertainment, hospitality and restaurant business in Romania are most affected by the economic impact of the coronavirus outbreak in the country, local fintech startup Smart Bill said on Thursday.
SMEs active in the entertainment sector reported a 72% annual drop in turnover in April and a monthly decrease of 58%, SmartBill said in a press release, citing the results of a survey it has conducted among 20,000 Romanian SMEs.
The next most affected SMEs were hospitality and restaurants operators, which reported a 59% annual drop in turnover in April and a monthly drop of 40%.
SMEs active in education saw their turnover shrink by an annual 61% in April and by a monthly 50%, the survey showed. Small businesses active in healthcare and social assistance had a similar annual and monthly rate of decrease in turnover in April.
Statistical data provided by SmartBill shows a 19.2% annual drop in SMEs' turnover and an even bigger month-on-month decrease - of 25.7%.
Most affected geographical areas are west, north-west, south-west and north-east, where SMEs reported an average annual drop of 25% in turnover, while the Bucharest-Ilfov area was least affected, with an average annual drop in SMEs turnover of 13%.
"In March we can notice the first signs of the crisis, but not as widespread as we would have thought. One explanation is that most companies are active in the services business, which is based on contracts, where billing is generally done after delivery. Also, many regular service contracts include a 30-days termination clause. Due to these aspects, it is normal to see a delay of the crisis impact on SMEs turnover," SmartBill co-founder and CEO Radu Hasan said.
According to the CEO, the downward trend in turnover is expected to continue in May.