Business in the Czech Republic will recover for more than a year

Business in the Czech Republic has certainly been hit by the pandemic. Reduction of employees, decrease in orders and income, suspension or closure of a business – one of these points affected 90% of firms and enterprises. Business owners believe it will take more than a year for businesses to recover from the pandemic.

A significant number of firms relied on themselves rather than government aid. About a third of entrepreneurs used their reserves. Less than 30% have abandoned investments due to the pandemic. Some businesses tried to use their creativity to the maximum, thus saving their existence in the market.

For example, the pharmaceutical company Aveflor in the spring of 2020 very quickly reacted to the lack of disinfection in the Czech Republic. The company is a producer of cosmetics, veterinary drugs and medical products. “At the beginning of the pandemic in the Czech Republic, the need for disinfection increased dramatically! We urgently started production of disinfection and provided the required amount to the country.” – said the director of the Aveflor company.

Some firms have very dramatically retrained for the pandemic. For example, a lingerie company started making masks. “In the spring, events related to the coronavirus developed very quickly. We sold out all the masks in a matter of days, so we started producing fabric masks.” – said the co-owner of companies such as Styx and Trenýrká

Business in the Czech Republic

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Business in the Czech Republic – new conditions in quarantine

Due to the uncertainty, entrepreneurs needed some time to get used to the new business environment.In the summer, when the borders started to open after the first lockdown, we suddenly had a lot of work to do. At normal times, we would be looking for new employees, but at that moment, something told us not to do this, as we expected the re-closure of borders and quarantine. ” – said Marek Meitski, partner of Petyovský & Partners, which cooperates and serves foreign clients.

At first, the company took undefined actions that affected the quality of the result. “It took some time before we said that we could no longer “suffocate „and should continue to develop and invest in the company. From that point on, the company’s revenue increased, “adds Meitskiy. As a result, the company’s sales grew by six percent.

This turn in entrepreneurial strategy may be the reason why quite a few companies see this year in bright colors. However, more than half of companies negatively affected by the pandemic expect a full recovery to take more than a year.

The fastest recovery is expected for various types of services – as a rule, the business does not need large investments, which means there is no debt, and you do not drag excessive losses with you. Industry and production are in a completely different situation. Recovery here takes much more time,” says the director of the associations Svobodova. However, there is something positive in every crisis. “This is about increasing digital opportunities or increasing sales through online stores. On a positive note, companies are starting to think about changing the product and the services they provide.”