The environment for small and medium-sized businesses has become more difficult, the number of bankruptcies is increasing – but bank managers still see no reason for a crisis mood. Why is it like this? This is explained by Manuel Molnar, CEO of Sparkasse Oberösterreich.
The number of bankruptcies is expected to rise to more than 3,300 in the first half of the year, which corresponds to an average of 18 company bankruptcies per day – this forecast was presented a few days ago by the Credit Protection Association 1870. Figures that sound wild, but be less frightening for Manuel Molnar.
“Compared to 2019, the figures are at a normal level,” says the board director of Sparkasse Oberösterreich, who yesterday presented a study conducted for Erste Bank and Sparkasse.
The focus is on small and medium-sized businesses in Upper Austria, of which the Linz-based financial institution has approximately 21,000 customers in its customer base.
The environment has become challenging: “The labor shortage will remain, interest rates will remain and digitalization will continue to increase,” Molnar said.
“If something goes wrong, they can adapt.”
Why does the motto ‘don’t be afraid’ still apply? “The Austrian economy has done its homework well. Our business customers are well capitalized and can therefore bear risks. Even if something goes wrong, they can adapt. They are innovative and find new markets.”
Source: Krone
I’m Ben Stock, a journalist and author at Today Times Live. I specialize in economic news and have been working in the news industry for over five years. My experience spans from local journalism to international business reporting. In my career I’ve had the opportunity to interview some of the world’s leading economists and financial experts, giving me an insight into global trends that is unique among journalists.
