CHINA, 13 April 2020 – According to a recent CEO Survey 2020 published by China’s Hupan School of Entrepreneurship, companies with online business presence are less affected by the COVID-19 outbreak and are more confident about their first quarter and full-year earnings results.
The survey conducted with 151 chief executives from various companies in the country saw 75% respondents predicting a possible business performance decline in their first quarter, while 45% also expects their business performance will maintain or grow this year.
The study also revealed that established businesses are more resilient to the pandemic. Those that have operated over 10 years said their sales may go down by no more than 30% or remain stagnant, while those with 5 to 10 years operation predicted an increase or stagnant, and those that are 5 years or below expected their sales to be down by no more than 50% or will likely remain stagnant.
When asked about how they are surviving the crisis, many of the surveyed executives ranked digitisation, having sufficient cash flow, organizational agility to adapt to the situation, and having products or services that are not affected by the pandemic as top advantages that will help ensure survival.
The COVID-19 outbreak saw many businesses in China forced to evaluate their risk management and business continuity plans while operating under strict lockdown order.
In just a few weeks, many companies in China took the lead in digitizing their business operation, not only for internal management like accounting, but also for business operations, switching from traditional offline to accepting digital online orders.
Conducted between 13-21 February, the CEO Survey 2020 by Hupan School of Entrepreneurship – a programme founded by Alibaba’s Jack Ma – reached out to 151 chief executives of companies, who are also students of Hupan University.
The survey analysed the effect of COVID-19 on businesses, which has taken a big toll on China’s economy.
Read more: Why SMEs Should Leverage on Digitisation