More than half of Europe’s SMEs may fail in the coming year, McKinsey predicts

The foreign media quoted a survey released by McKinsey & Co. on the 22nd, pointing out that more than half of Europe’s small and medium-sized enterprises (SMEs currently provide jobs for two-thirds of Europeans) are concerned about their survival in the next 12 months.

The report said that the accelerating development of the epidemic in Europe is forcing governments to impose new restrictions on a variety of activities, which has triggered speculation that the government will take new closure measures.

In addition, warnings of a looming wave of corporate bankruptcies are also growing. The International Monetary Fund and other agencies are urging European governments to step up support to help businesses withstand the new crown epidemic.

In a survey of more than 2,200 companies in five countries – France, Germany, Italy, Spain and the United Kingdom – McKinsey & Co. found that if their revenues remain at current levels, 55 percent of them are expected to fail by next September.

On current trends, it is expected that one in ten SMEs will file for bankruptcy within six months.