RSBI Demonstrated Growth of Business in SMB Segment
By the results of RSBI Wave XIX business operations in SMB segment increased in early 2019
Russia Small Business Index (RSBI) — the index of Russia’s small and medium business health — demonstrated growth of business in Q1 2019 up to 52.0 points vs. 47.1 points in Q4 2018. At the same time the first three months of 2019 turned out to be the worst months for the last three years in terms of business operations, according to the respondents’ estimation.
The negative forecast made by the respondents in late 2018 came true in the beginning of this year. 43% of the respondents mentioned worsening of their business, while only 9% - improvement. First of all small and medium enterprises face decrease of their revenues — 46% of the companies have this problem. The growth of revenues was mentioned by 15% only. However in Q2 small business is expecting another growth of sales. The optimistic forecast compensated the changed terms & conditions and supported the Index dynamics, making it positive.
In Q2 business assumes to have a thaw period. Some 27% of the respondents expect improvement in their business environment, while only 22% - worsening. Some 43% of the respondents hope to have growth of revenues, while 16% - expect decrease of this indicator. The Index is also improved due to its HR and Investment components. However this refers to positive forecasts for the future periods.
19% vs. 10% (in the previous quarter) of the respondents plan to increase their FTE number. Only 7% vs. 11% mention their staff redundancy.
28% of the respondents plan to increase their investments, which is higher than in the previous quarter — 17%. 7% vs. 15% of the respondents mentioned investments reduction.
At the same time the availability of financing did not change. This proves the fact, that loan conditions for small and medium companies did not change in the first quarter vs. the previous period. Specifically 31% of the respondents mentioned easiness of getting loans in Q1 2019, while in Q4 2018 only 37% of the respondents mentioned this factor. At the same time the problems in this area were mentioned by 34% vs. 36% in the previous quarter.