European Union

This is how COVID-19 is affecting Europe's SMEs

A closed sign hangs on the door at Rossi's Ice Cream Parlour, as the spread of the coronavirus disease (COVID-19) continues, Southend-on-Sea, Britain, March 29, 2020. REUTERS/John Sibley - RC2NTF9CFKWX

Hospitality is one of the industries worst affected. Image: REUTERS/John Sibley - RC2NTF9CFKWX

Karim Tadjeddine
Partner, McKinsey
Ruchi Sharma
Associate Partner, McKinsey
Zdravko Mladenov
Partner, McKinsey
Jonathan Dimson
Senior Partner, McKinsey
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europe european smes small medium size businesses eu union Coronavirus china virus health healthcare who world health organization disease deaths pandemic epidemic worries concerns Health virus contagious contagion viruses diseases disease lab laboratory doctor health dr nurse medical medicine drugs vaccines vaccinations inoculations technology testing test medicinal biotechnology biotech biology chemistry physics microscope research influenza flu cold common cold bug risk symptomes respiratory china iran italy europe asia america south america north washing hands wash hands coughs sneezes spread spreading precaution precautions health warning covid 19 cov SARS 2019ncov wuhan sarscow wuhanpneumonia pneumonia outbreak patients unhealthy fatality mortality elderly old elder age serious death deathly deadly
Exhibit one: Revenue has fallen for Europe's SMEs since the start of the pandemic. Image: McKinsey&Company
europe european smes small medium size businesses eu union Coronavirus china virus health healthcare who world health organization disease deaths pandemic epidemic worries concerns Health virus contagious contagion viruses diseases disease lab laboratory doctor health dr nurse medical medicine drugs vaccines vaccinations inoculations technology testing test medicinal biotechnology biotech biology chemistry physics microscope research influenza flu cold common cold bug risk symptomes respiratory china iran italy europe asia america south america north washing hands wash hands coughs sneezes spread spreading precaution precautions health warning covid 19 cov SARS 2019ncov wuhan sarscow wuhanpneumonia pneumonia outbreak patients unhealthy fatality mortality elderly old elder age serious death deathly deadly
Exhibit two: Perception of strength of the European economy, by SMEs. Image: McKinsey&Company
europe european smes small medium size businesses eu union Coronavirus china virus health healthcare who world health organization disease deaths pandemic epidemic worries concerns Health virus contagious contagion viruses diseases disease lab laboratory doctor health dr nurse medical medicine drugs vaccines vaccinations inoculations technology testing test medicinal biotechnology biotech biology chemistry physics microscope research influenza flu cold common cold bug risk symptomes respiratory china iran italy europe asia america south america north washing hands wash hands coughs sneezes spread spreading precaution precautions health warning covid 19 cov SARS 2019ncov wuhan sarscow wuhanpneumonia pneumonia outbreak patients unhealthy fatality mortality elderly old elder age serious death deathly deadly
Exhibit three: A fifth of European businesses are concerned about payment obligations. Image: McKinsey&Company
europe european smes small medium size businesses eu union Coronavirus china virus health healthcare who world health organization disease deaths pandemic epidemic worries concerns Health virus contagious contagion viruses diseases disease lab laboratory doctor health dr nurse medical medicine drugs vaccines vaccinations inoculations technology testing test medicinal biotechnology biotech biology chemistry physics microscope research influenza flu cold common cold bug risk symptomes respiratory china iran italy europe asia america south america north washing hands wash hands coughs sneezes spread spreading precaution precautions health warning covid 19 cov SARS 2019ncov wuhan sarscow wuhanpneumonia pneumonia outbreak patients unhealthy fatality mortality elderly old elder age serious death deathly deadly
Exhibit four: Growth is expected to stall across Europe. Image: McKinsey&Company
europe european smes small medium size businesses eu union Coronavirus china virus health healthcare who world health organization disease deaths pandemic epidemic worries concerns Health virus contagious contagion viruses diseases disease lab laboratory doctor health dr nurse medical medicine drugs vaccines vaccinations inoculations technology testing test medicinal biotechnology biotech biology chemistry physics microscope research influenza flu cold common cold bug risk symptomes respiratory china iran italy europe asia america south america north washing hands wash hands coughs sneezes spread spreading precaution precautions health warning covid 19 cov SARS 2019ncov wuhan sarscow wuhanpneumonia pneumonia outbreak patients unhealthy fatality mortality elderly old elder age serious death deathly deadly
Exhibit five: 10% of Europe's businesses expect they will have to file for bankruptcy within the next half a year. Image: McKinsey&Company
europe european smes small medium size businesses eu union Coronavirus china virus health healthcare who world health organization disease deaths pandemic epidemic worries concerns Health virus contagious contagion viruses diseases disease lab laboratory doctor health dr nurse medical medicine drugs vaccines vaccinations inoculations technology testing test medicinal biotechnology biotech biology chemistry physics microscope research influenza flu cold common cold bug risk symptomes respiratory china iran italy europe asia america south america north washing hands wash hands coughs sneezes spread spreading precaution precautions health warning covid 19 cov SARS 2019ncov wuhan sarscow wuhanpneumonia pneumonia outbreak patients unhealthy fatality mortality elderly old elder age serious death deathly deadly
Exhibit six: Government support has been helping SMEs. Image: McKinsey&Company
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