Chart of the Day: SMEs turn to WFH and reduced work hours to cut costs
Some in the hospitality/F&B, wholesale and construction sectors resort to delaying payments.
This chart from Experian shows that most SMEs have introduced work from home (74%) and reduced business hours (50%) measures across all sectors to address operational concerns.
This is followed by transacting online (22%), which 57% of SMEs in the hospitality/F&B sector are adopting to continue catering to their clients. SMEs in the services (73%), manufacturing (68%) and wholesale (63%) sectors have also reduced business hours amidst the circuit breaker measures.
In an attempt to increase cash flow, a portion of SMEs in the hospitality/F&B (37%), wholesale (30%) and construction sectors (29%) are delaying outstanding invoice payments. Potentially hinting at challenges with operating capital, SMEs in hospitality/F&B, construction, and transport/storage have also taken more credit measures during this period.