Seven out of ten startups reduced costs due to COVID-19

Aliados Consulting and FES Agency conducted a study on how the startups were due
to COVID-19, called "The Portuguese Entrepreneurship Ecosystem and COVID-19 –
Impact Analysis". The study's conclusions state that the national startups ecosystem is
more optimistic. However, more than three out of ten startups say they are concerned
about a possible closure of their project as a result of the pandemic (36.1%).

According to the survey results, 67.2% of the startups surveyed had to reduce costs,
most in contracted services and marketing, and more than half (59%) are suffering
negative impacts from the pandemic, with 32.4% recording sales losses of more than
60%. More than nine out of ten respondents (90.2%) have not yet had to lay off
workers in response to sales losses. Only 1.6% of the startups that participated in the
study had to lay off between 21% and 40% of the team. In contrast, more than 44% of
start-ups want to continue hiring, especially people with technological profiles (67.9%).

Even so, according to the results, almost half of the start-ups (49.2%) have only up to
six months of available capital, so prolonging the situation resulting from the pandemic
may "seriously threaten their survival".

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