What’s the “R” number for the Impending SME closure epidemic
Our Political Leaders are rightly fixated on the “R” number and how many deaths, new cases recorded daily, all important but they should now be dealing with gusto, the next impending countrywide epidemic, mass SME closures.
What is “R”? The Reproduction number is a way of rating a disease’s ability to spread. Less than 1 is good more than 1 is bad.
What is the R number for SMEs? 2 to 3?
How many are going to be infected by lack of liquidity? How many SMEs will die never to reopen?
If the country could see the “R” number for SME’s – those businesses on life support, those closing, those in the metaphorical Business-ICU, everyone would see the devastation that is on its way in the next 3-4 months. There is no talk of the SME R number…by anyone.
SME Owner Managed businesses shut their doors upon request, for the greater good of our society. Now they are trying to reopen, unsure and fearful of what lies ahead. They do not need to be! We have a vaccination…it is called liquidity.
These 250,000 businesses, largely owned by families, employ 1.5 million people. They employ your family members, friends, and neighbours. Real people in villages, towns, and parishes throughout the country. Oh, and by-the-way they generate 50% of all Taxes that fund the State.
You can see how the infection starts in SMEs. It starts with reduced headcount caused by poor liquidity. Good SME’s infected with short-term cash challenges.
Our Political Leaders quite rightly took swift, decisive, difficult decisions to deal with the impending impact of COVID-19 to our people. If immediate, decisive, difficult decisions are not made or taken to support and rebuild our SME sector… the carnage will be devastating, the negative impact will be disastrous, for owners, employees, and the wider society.
Maybe our Leaders feel their job is done? The measures already taken are enough or indeed that there will be enough time to react if they got it wrong?
They are not measuring the SME R number. SME’s are already infected with poor liquidity; they are showing symptoms of stress and fatigue. If the R number is higher than one, then the number of cases increases exponentially – it snowballs like debt on an unpaid credit card.
That is what kills the SME …it drowns in its own debt. It’s not just the owner that goes down he/she brings everyone with them.
Decisive, swift, and positive action by our Political Leaders is needed now.
We have the vaccination! We do not have to wait 18 months. SME’s are drowning.
Give us the liquidity vaccination now! We are dying. We will not last much longer.
Go to www.smerecovery.ie sign the petition and give your support to get this plan implemented so SME’s can get back on their feet.