40% of self-employed will have to close down if there are new restrictions

The health crisis has affected the self-employed more than most, and the figures once again confirm this. According to a survey by the Catalan SME Association Pimec, two out of five self-employed (40%) workers will not be able to withstand a third wave of covid-19 accompanied by more restrictions on economic activity and would be forced them to close their business permanently.

In fact, about 5% of self-employed workers already predict that they will have to close down in 2021 and another 65% think they will end next year with decreases in activity. The only positive reading is that 13% expect to increase turnover in 2021 while 17% think they will continue with the same levels of work they have had in 2020. In addition, 18% of the self-employed have not had any economic activity this December, a figure that has practically doubled since September.

The study presented by Pimec on the situation of the self-employed in Catalonia - based on a survey of 900 self-employed workers carried out in early December - also warns that eight out of ten self-employed professionals have suffered cash flow problems (that is, at some point have had too little liquidity to make payments) since the outbreak of the pandemic.

To maintain the "survival" of the business, the vice president of the self-employed section of Pimec, Carme Garcia, has called on governments to provide "direct aid" to the group. So far, 132,000 self-employed Catalans have been able to collect the controversial €2,000 subsidy from the Generalitat.

"There are elements that weigh like a slab, such as taxes, social security contributions, rent or supplies," said the manager of the institutional area of Pimec, Angel Hermosilla. That is why "all types of action will be welcome", added Hermosilla, who believes that in Spain "fiscal policy is not being used as in other countries". In fact, the lack of aid in comparison with other European states, such as Germany or France, has been the main complaint of the business entity about the situation of the self-employed.

In this sense, Pimec is aware that the Spanish government "does not have a very high debt capacity" compared to neighbouring countries, so, according to employers, the executive of Pedro Sanchez and other administrations, such as the Generalitat, is "sailing between maintaining a certain economic activity and restricting the movements of the population to curb the proliferation of new infections of covid-19.

Despite the bad situation that, according to the study by Pimec, a large part of the self-employed suffer, Hermosilla has recalled that there are sectors where self-employed workers have recovered or even increased the activity they had before the arrival of the virus last winter. This is the case of logistics, industry and, until recently, construction, which are evolving "quite well".

At the other extreme, services to people - for example, leisure and cultural activities - tourism, hotels and commerce have suffered the most and will suffer the most for the duration of the pandemic or if new waves occur. "There are invisible micro-sectors that are going relatively unnoticed, but which we have all used at some time," lamented Hermosilla, citing the fairs and events sector or children's leisure, which are suffering from many restrictions, "often 100%".

In favour of raising the minimum wage

Pimec insisted on Tuesday that it considers a possible increase in minimum wage to be positive. The measure has been postponed by the Spanish government while negotiations continue with social agents in order to reach an agreement. "We are in favor of raising the minimum wage because it is now at unjustifiable levels," said Garcia. However, he admitted that for some companies, especially small ones, a rise in labour costs may represent "an added difficulty", which is why he defended the minimum wage increase to be accompanied by a "reduction in employer's contributions" to Social Security.