The Hunger Games in Action. How entrepreneurs reacted to the extended weekend

What happened

To contain the increase in the incidence of coronavirus infection, President Vladimir Putin declared the week from March 28 to April 5 a non-working week - with the preservation of wages. Money to employees during this time must be paid at the expense of the employer.

Due to the epidemic, many companies are losing not only employees, but also customers. The self-isolation regime does not contribute to the development of the economy, although it cannot be done without it. So businesses, especially small and medium-sized businesses, are under attack. Before the weekend was announced, entrepreneurs sounded the alarm. Anastasia Tatulova, the founder of the Anderson family café chain, wrote in a column for Forbes that this crisis is fatal and many are under the threat of bankruptcy.

Of the support measures, the business was offered a six-month deferral (not canceling) taxes, except for VAT. They also deferred the rent for federal property, reduced the amount of insurance premiums on salaries above the minimum wage from 30 to 15%, and expanded soft lending programs for small and medium-sized businesses. But there are nuances here. For example, six months later, taxes will still have to be paid, but it is not a fact that the income will be. So the business took these measures without enthusiasm. Moscow Mayor Sergei Sobyanin in an interview with Channel One said that it is wrong to provide citizens with financial assistance from the treasury, so "budgets will crack." In his opinion, "the majority of enterprises will have enough resources to provide for the part of people who do not work today."

On April 2, the quarantine holidays were extended until the end of the month. The life hacker found out from entrepreneurs how they feel about this and what they think about the future.

Forgot to clarify where to get the money

For obvious reasons, many entrepreneurs are shocked and rather pessimistic.

“Everyone has one question: 'How are we going to survive?'”

On April 2, I was looking forward to the President's speech. There was no doubt that if self-isolation was extended, the situation would be called an emergency. But that did not happen. We have extended the vacation for the whole April, and in fact until the end of the first decade of May. This is the end?

I chat with other representatives of small business, the question is the same for all: "How are we going to survive?" The phrase about keeping salaries sounded very optimistic from the lips of the president. At first I wanted to cry, then open the window and scream at the top of my lungs. What should we do, accept? And staring blankly at your business dying? Or has he already died, and we are in illusions? Apparently it is.

No measures to support the business were announced. I have two retail stores. Rent, people, liabilities for taxes, loans. Banks are not asleep - they call, write, threaten with fines. I am ready to give things to employees so that they try to implement them by taking money against their salaries. Before closing, I did just that, but in self-isolation, selling something to someone is akin to a miracle. Most of the money just doesn't have it. But they couldn't think of anything else.

Friend is known in trouble. Apparently, the state has once again confirmed: it is not our friend.

There was no command to think

Dmitry Bige

The main message from the president to the business is: "Deal with it as you like." If after the first appeal it was possible to consider that they were in a hurry, they had not thought of everything, now there is no doubt: there was no command to think. We will not introduce an emergency mode, because the state will have to pay. Worker - stay at home (which is right) and get paid. The employer - pay, but they forgot to specify where to get the money. Especially great for companies that can work remotely. Formally, the presidential decree orders them to stop working, too. Just rest.

The consequence is one: the bankruptcy of small and medium-sized businesses and the collapse of the economy. There is only one support measure: direct subsidies to the population. That is, literally giving away money to support people and the economy in the end. Only there is no money, and there is nowhere to borrow it, so we declare non-working days. And now HR and lawyers have been trying for a week to find this concept in at least one law or by-law in the country.

I'm afraid to guess what will happen

Zoya Vinnichenko

This will kill Russian business. We could hardly hold out for a week. I paid employees a salary from the reserve fund, but there is no more money. Three disabled people work for me, many employees are over 60. My company is engaged in the supply of professional power tools, their repair and warranty service, so the option of remote work is not possible with me.

Previous crises, we passed due to unique proposals for the assortment, training the client to work with him and individual solutions. But I'm afraid to think about what will happen now.

There are still alive, and we will fight to the end

Tatiana Khodanovich

The president’s speech shocks businessmen every time. A week of vacation had to be swallowed. They understood that if the situation worsened, they would introduce quarantine or emergency situations, which would give the right at least to use the points about force majeure in the contracts. But no, the holidays at the expense of employers continue. Those scanty benefits for social benefits, which were given, come into force only on April 1. And we remember that it all started earlier. We have been living in this nightmare since mid-March.

Employees are all remote, and, with all due respect to Internet formats, they cannot be as effective remotely. There are a lot of reasons for this, and it's not even a matter of conscientiousness: children are at home, not everyone has the opportunity to retire, fears are imposed, you need to constantly think about how to feed your family. At the same time, social contributions from companies have been paid, income tax, VAT for the first quarter will be paid all together, rental holidays are not expected. We will have to look for how to reduce at least some costs, and find out how long we will have the strength to find an opportunity to pay salaries.

No one in government understands what the realities of small business are. We paid taxes, and the time has come when we need to return them to help us survive. But they are sure that there is no small and medium-sized business, it is dead. And here there are still living people, and we will fight to the end!

I honestly paid taxes, but it would be better to save money for a rainy day

For many entrepreneurs who have lost customers for a long time, reformatting can be a lifeline. This is exactly what some are doing: they are trying to integrate business into current realities. It turns out differently for everyone.

Filing for bankruptcy is the best way out

Artyom Tabunin

Our company helps educational institutions collect and record payments. For us, it all started on March 18th with the introduction of school holidays and will last until September. Our revenue is now zero. Fortunately, we managed to optimize costs before the weekend, because now it is much more difficult to do it.

I think these three weeks are disastrous and for many businessmen filing for bankruptcy is the best way out. Those few who have low costs, have a margin of safety and who will be able to adapt to the new situation by reorganizing their business will survive. We decided to offer our audience a new service: we are launching a sports marathon for children based on our application for payments. According to our observations, the demand for entertainment content for schoolchildren has increased, let's see what happens.

If the quarantine is extended, you can close

Marina Atyaksheva

We survive as best we can. Now they have switched to online training, but many clients do not want to practice via video. Nothing is clear about the lease. Before the announcement of self-isolation, the landlord had twice categorically denied rental vacations. Now we are hoping to cancel the lease, as we will not be able to cover even half of it. If the quarantine is extended to May, it can be closed. In summer, fitness is not in demand, and there will be nothing to pay for another three months of downtime. A regulation on vacation rentals for fitness clubs and beauty salons, as well as at least some allowance for those who are individual entrepreneurs in spheres that suffer losses, would help.

I have always honestly paid all taxes and contributions to the pension, and it would be better to save this money for a rainy day that has come.

The most negative thing about this situation is uncertainty

Oleg Kozyrev

The situation is acquiring an absurd character: the economy, in fact, has been put on hold, but one must understand that the status quo is no longer working. The government must take the next step - to introduce an emergency situation, but it constantly postpones it. Having a weekend that really is not is a very strange measure. Any downtime is death for business, because income depends on turnover, and people do it. The only thing that is needed in such a situation is to clearly formulate support measures, which should be based on replacing the income lost by the business. Unfortunately, this was not done.

The stimulation measures are very vague. The categories of business to which they will be provided are not clearly formulated, as well as there are no specific rules for support. We see only verbal intervention: to reduce insurance deductions from 30 to 15%. VAT remains, and this is the main tax for most enterprises, for the rest of the tax deductions - a deferral. How to pay these taxes later is unclear.

The most negative aspect of this situation is the uncertainty and lack of confidence in the overwhelming majority of businessmen in even the medium-term - up to six months - perspective. When it comes to travel, our segment of the market has suffered not from non-working weeks, but from quarantine measures and disruptions to supply chains. All work is now being carried out within the framework of the settlement of the claim load from clients who find themselves in a difficult situation. We are coping with this thanks to the significant reserves that have been formed in the company. After the current failure, the market will "grow back" and we will be ready for it.

If the situation drags on, you will have to say goodbye to employees

Some companies still feel fine. They did not have to rush to transfer employees to a remote location, because they already worked remotely. However, there are risks for them too. First, it is not known how long the restrictions will actually last and how damaging they will be to the economy. Secondly, a business cannot exist without clients. This means that if one industry sags, it will inevitably pull others along with it.

The crisis will hit many companies with a second wave

Anastasia Fedorova

We have been practicing a remote work format for several years now, and the extension of self-isolation will not have a very strong impact on the agency's day-to-day processes. However, we are tied to communication with clients who do not yet give feedback on how things will be with them. It is difficult to predict something now: the situation changes not only every day, but every hour.

I myself, as the head of the agency, am not disposed to say that I am optimistic. I have a lot of anxiety about how the markets of our customers are being transformed: it is already difficult for everyone and it will be even harder. The main task for us now is to try to maintain the same volumes of work and, accordingly, revenue. Probably, it would be easier for me if small and micro-businesses could receive tax incentives, and not as an instant support, but as a prolonged one. For many of these companies, the crisis will hit a second wave in a few months.

Losing customers and new orders in a crisis is simply unreasonable

Inna Anisimova

My employees and I have been remotely since March 18, and therefore we worked in the first week of the weekend: it is safe for everyone and does not contradict the decree. Plus, it is simply unreasonable to lose customers and new orders during a crisis: this is our revenue and a resource for remuneration. So far we have an airbag for six months, but if the situation drags on, alas, first we will have to say goodbye to those who are on probation, then to those who have been working for a long time. Downsizing will be inevitable.

Temporary tax relief and financial support for small and medium-sized businesses would soften the plight of companies. But the state is unlikely to take such a step. Therefore, we plan to continue to work, but give all our best not twice, but three times more. There is no other way now.

Sales and traffic growth will have a delayed effect

Anna Znamenskaya

This weekend month will have an extremely negative impact on the economy, especially on small and medium-sized businesses. Those who now see the growth in traffic and sales and are happy about it should understand that all this has a delayed effect. Now people are sitting at home, consuming paid digital content, ordering groceries and ready-made meals. In a month or two, many will have no source of income and the online revenue stream will dry up. The advertising market will also start to collapse. Of course, digital is the most popular media among advertisers, but instead of 10-15% growth this year, I believe we will get a 15% drop, and this is the best case.

“It would be great if the authorities were sincere”

Instead of the current half-measures of support, entrepreneurs want certainty and real opportunities for salvation.

It's not just the president's address

Oksana Salikhova

What is left to do? Accept this challenge, try to fulfill your obligations, fight, survive. In general, nothing new has happened, small business - and most of the agencies are small or micro-businesses - never receive any support from the state and are always the first to be hit. It's not just the president's address. A sequential dive is in progress. First, a complete drop in the event market, then a decrease in orders in other areas (digital, creative) will follow: clients will have to cut costs in the same way in order to pay salaries in April. A sort of hunger game in action.

Now any chance to cut costs or replenish cash flow will help: the abolition of taxes (VAT, simplified taxation system), loans on normal terms (agencies usually have no assets, so it is difficult to get loans) and the ability to continue to implement projects, for example, receive travel certificates for filming or organization of deliveries.

The main support measure is to stabilize the situation

Vladimir Volobuev

The core value of our company is sincerity. It would be great if the authorities were sincere and did everything in accordance with reality. That is, they would have introduced an emergency regime and would not have covered themselves with a legal collision about non-working, but paid days and a self-isolation regime. This only confuses citizens and does not inspire confidence. Now business cannot predict the next step of the government.

I want us to have an understanding of what will happen next. The most important support measure for business now is to stabilize the situation and start at least some kind of economic activity in the country. We do DNA testing and our company has the necessary capacity to carry out coronavirus tests. We could benefit the whole community if DNA companies were allowed to test for COVID-19 for everyone.