Entrepreneurs who have made expansion feel at a disadvantage: we have invested and now it is turning against us



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Delfi knew three stories of entrepreneurs in similar situations. According to Dovilė Ambrazevičiūtė, one of the founders of Puodas ir petunija, which sells garden utensils, its turnover has not decreased in November and December 2019 compared to the corresponding period of 2020.

As you know, in order to receive the grant, the average monthly billing must be reduced by at least 30%.

“Since April 2018 we are only e-shop, since September 2019 we opened the first physical store in the Ozas shopping center, and since September 2020 we opened a point of sale in Outlet Park investing our funds.

Comparing 2019 and 2020, our turnover has not decreased, but comparing the period from the second physical store closure on December 15, 2020, with the previous 3 months, our turnover has decreased by 50-60%. The growth in sales of online stores cannot burn out all our obligations ”, said the businesswoman.

D. Ambrazevičiūtė also noted that even if he met the turnover criterion, he would not receive much support, because the amount of the subsidy depends on the amount of personal income tax paid in 2019.

“In 2019, we still work for only two as owners of a small community (who cannot have a working relationship with their company). We started hiring the first employees in 2020, so we only pay GPM from the beginning of 2020. We create 4 jobs a year, ”said the entrepreneur who founded the company together with her sister Kristina.

Under the subsidy scheme, the company can expect 25 percent. GPM paid, if its amount was greater than 2,000. euros.

EUR 500 is available for companies with a lower amount of GPM paid or that were established between November 1, 2019 and November 30, 2020 and received no revenue between November 2019 and January 2020.

Plant transplantation

Plant transplantation

Turns against

Mr. Ambrazevičiūtė commented that some entrepreneurs feel highly discriminated against and placed in an unequal position precisely when they are extremely vulnerable: in the development stage.

“It has not been able to accumulate emergency funds. It is strange that only the increase or decrease in billing is taken into account and the cost at which that increase was achieved is completely ignored. We have invested in opening a second store and paid our taxes from fair way, and now all this is working against us. If we look at the situation from the other side, those who did not expand but who withdrew win, “he thought.

The interlocutor qualified the decision to take into account only the GPM paid in 2019 as unreasonable.

“It is understandable that 2019 was taken into account during the first quarantine, but now 2020 is over and they are a relevant experience,” he said.

D. Ambrazevičiūtė also drew attention to the largest retail chains that are allowed to work.

“They bring the same products that we normally sell and market. The question is, would our stores have a higher risk of infection? Perhaps it would be correct that products whose physical commerce is prohibited to us and supermarkets are sold only online? Isn’t this a violation of jurisdiction by the state? “, I ask.

The “Pot and Petunia” co-owner noted that he has to pay employee salaries, although downtime allowances are delayed, and from January 1, 2021, all taxes have to be paid.

“So the impression is that we have responsibilities, but the state does not feel that we have responsibilities,” he said.

According to data from the Registry of Legal Persons, in 2019, “Pot and Petunia” received 15.9 thousand. Income from sales and incurred -12 thousand. net loss of EUR. According to Sodra, on January 26 the company had 4 employees, whose average salary paid in December was 603.37 euros “on paper” (about 445 euros “in hand”).

Optics vision

Optics vision

© Photo of the organizers

I did not think

Gerda Melman, co-owner of the small glasses company “Mūs selling optika”, held a similar opinion.

“In September 2020 I opened another store and clearly the turnover has not decreased. In addition, another person was hired, ”he said.

The interlocutor said that the government probably did not think about the businessmen who carried out the expansion.

In 2019, “our optician” received 34 thousand. sales revenue and earned 7.1 thousand. net profit of. The company currently has 2 employees.

Entrepreneur Klaipėda, who asked not to mention the name and identity of his company, was also outraged that he was not receiving support now due to the efforts made to preserve the business.

“The situation is that you laugh more than you want to cry. It is so bad that the people who make decisions do not even imagine the details of the business and what small businesses live on,” said the man.

The interlocutor explained that he would not receive the subsidies because he made a great effort in electronic commerce after closing the stores.

“As a result, we are left without support, and comparing the turnover of companies regardless of how much investment has been made is absurd,” he said.

Aušrinė Armonaitė

Aušrinė Armonaitė

© DELFI / Josvydas Elinskas

There may be individual cases

The responses provided by the Delfi Ministry of Economy and Innovation indicate that they understand that there may be individual cases or different situations.

However, business support measures were discussed with the social partners and their suggestions were listened to.

Most companies experienced difficulties and a drop in turnover in 2020, and this criterion, when evaluating the total turnover of a company, is appropriate for most business representatives. If the company has suggestions on how to improve the aid measures, the Ministry of Economy and Innovation will always listen to them and will take them into account when applying other measures, ”said the ministry’s representatives.

The ministry explained that the size of the GPM subsidy paid in 2019 was chosen because 2020 was a difficult year for most entrepreneurs.

As mentioned above, the aid measures have been coordinated with the social partners, listening and taking their suggestions into account. In 2020, most of the country’s companies were struggling with Covid-19, so in order to obtain the subsidy, it was chosen to compare it with 2019. The Ministry of Economy and Innovation tends to work closely with companies, constantly evaluating commercial proposals and taking them into account when developing the aid ”, reads the response.

Entrepreneurs also complained about the period of 18 to 38 business days specified by the CTI, during which the subsidies should reach the companies.

“The maximum time limit could only apply if there are questions about the applicant’s data. The Ministry of Economy and Innovation aims for the support to reach companies as soon as possible. Companies that have provided correct and complete information should receive the subsidy within two weeks after the application date or even earlier. The first subsidies for companies will be distributed these days, that is, one week after the start of the measure, “the ministry responded.

As you know, since mid-January, companies can apply for the second quarantine aid measures: grants and soft loans. 180 million have been allocated to both measures. euros.

“In February, we plan to help more freelancers working in the market, we appreciate the opportunities to contribute to the most affected sectors and to increase the scope of testing,” Minister Aušrinė Armonaitė said previously.

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