AN EVALUATION OF THE FINANCIAL OUTLOOK OF SMEs DURING THE COVID-19 OUTBREAK: THE CASE OF DENİZLİ TEXTILE BUSİNESSES

Abstract

SMEs generate the basis of economic and social stability in Turkey as well as in the world. Although SMEs have such an important role, they may be affected more by crises due to their weak financial structures compared to large-scale enterprises. The Covid-19 pandemic is a new threat affecting all sectors of the economy. Although the extent of COVID impacts is not fully revealed, it is predicted to have devastating consequences for SMEs. In this context, the aim of the research is to reveal the financial outlook of SMEs during the Covid-19 crisis.
Interview technique was chosen as the data collection method in the research. Online interviews were held with nine SME managers operating in the textile sector in Denizli Province. The reason for choosing Denizli Province in the research is the high concentration of small, medium and large scale enterprises in the textile sector. Managers were asked about the effects of Covid-19 on the operations of businesses and how it affects the financial outlook of businesses. Afterwards, the data obtained from the interview method were transformed into a written text and the procedure of coding, creating a theme, summarizing and interpreting was followed to include meaningful results (Turner, 2010: 759).
As a result of the findings obtained in the first part of the research; although the degree of exposure of the businesses from the crisis varies according to the activity of the businesses in the sector, it can be said that the first effect of the pandemic is on the orders of the businesses. While the pandemic did not adversely affect the technical textile, home textile and knitters group in the textile sector, it negatively affected the outerwear fabric manufacturers. As the demand for outerwear fabric manufacturers stopped, it caused the postponement and cancellation of both old and new orders. On the other hand, the business model that the enterprise uses to improve its activities has been effective in managing the crisis. It was determined that businesses that attach importance to e-commerce sales and start to produce antibacterial medical textile products and masks & medical overalls turn the pandemic process into an opportunity. Also, although business managers have voiced the negative effects of the pandemic, few businesses have scientifically conducted a SWOT analysis.
In the second part of the research, it has been determined that the financial outlook of businesses changes according to their ability to manage the Covid-19 pandemic. The businesses that selling through e-commerce, producing antibacterial medical textile products, beginning produce masks and medical materials in the pandemic don't have financial problems. On the other hand, the global lockdown due to the pandemic has deeply affected many businesses. During the pandemic, the businesses do not have enough working capital because of the extension of the collection period of the receivables, the cancellation of the orders, the inability to make sales, the delay of the delivery of the customers and stock turnover problems. In order to solve this problem, businesses have obtained funds by obtaining loans from public banks and discounting checks and bills in their portfolio. As the working capital cycle was disrupted, the debt burden of the enterprises increased, thus the debt / equity ratio and this increased the financing costs. On the other hand, during this period the decrease in revenues and the increase in production costs arising from energy expenses leaded to the operating profit to melt. This will adversely affect the cash flow from the business's operations and cause the working capital problem to fall into a vicious circle. In this process, SMEs make strict budget controls by focusing on expense and cost items, and review the management of their commercial receivables in order to ensure their sustainability. Except for a few businesses, it has been determined that the pandemic does not cause changes in their business models. The most common action in this process is to continue marketing activities in the digital environment. In addition, it has been determined that the pandemic experience does not cause businesses to innovate, invest in digital, and review their supply chains. The results of the study confirm the results of the studies conducted on this subject (Lu et al., 2020; Cowling and Brown, 2020; Shafi, Liu and Ren 2020; Qamruzzaman; 2020; Thorgren and Williams, 2020; Omar et al., 2020).
As the dimensions of the Covid-19 pandemic change, the effects on businesses will also be different. Therefore, SMEs need guidance in order to be able to manage the global crisis and to be integrated into the process. At this point, it is important that the sector boards under the Chambers of Commerce and Industry work with the sector to reduce the effects of the global epidemic on business activities and to solve the problems encountered in financial management.

Keywords

• covıd-19
• SMEs
• Financial Outlook

COVID-19 SALGINI SÜRECİNDE KOBİ’LERİN FİNANSAL GÖRÜNÜMÜNÜN DEĞERLENDİRİLMESİ: DENİZLİ TEKSTİL İŞLETMELERİ ÖRNEĞİ

Öz

Küçük ve orta ölçekli işletmeler (KOBİ’ler), girişimcilik faaliyetleriyle ülkelerin sosyo-ekonomik kalkınmasında önemli bir rol oynamaktadırlar. Ancak KOBİ'ler, krizlerin küresel finansal piyasaların üzerinde yarattığı ani ve şiddetli etkileri nedeniyle çeşitli sorunlarla karşı karşıya kalmaktadırlar. Bu anlamda Covid-19 pandemisi, iş dünyasını ve ekonomiyi etkileyen yeni bir tehdittir. Küresel boyutta devam etmekte olduğu için, yarattığı etkilerin boyutları henüz tam olarak ortaya konulamamıştır. Çalışmanın amacı, Covid-19 sürecinde KOBİ’lerin finansal görünümünü ortaya koyabilmektir. Bu amaç doğrultusunda Denizli İl’inde tekstil sektöründe faaliyet gösteren KOBİ yöneticileriyle görüşme yöntemi kullanılarak veri toplanmıştır. Sonuç olarak, Covid-19’un tekstil sektöründeki işletmelere etkisinin işletmenin faaliyet konusuna ve iş modeline göre farklılık gösterdiği, sipariş üzerine üretim yapan bazı tekstil işletmelerinin siparişlerinin pandemi sürecinde askıya alındığı veya iptal edildiği tespit edilmiştir. Bu durumun işletmelerin finansal görünümünde nakit, stoklar, ticari alacaklar, gelirler, borç / öz kaynak yapısı, gider ve maliyet kalemlerinin öne çıkmasına neden olduğu belirlenmiştir.

Anahtar Kelimeler

• covid-19
• KOBİ
• Finansal Görünüm

Kaynakça

1. Apak, S., Erol, M., ve Atmaca, M. (2012). Accounting Measures to be taken for The Enterprises in Difficulty during Times of Economic Crisis: A Study on Small and Medium- Sized Enterprises, African Journal of Business Management, 6 (23): 6832-6844.
2. Atmaca, M. (2016). Finansal Oranlar Aracılığıyla Çalışma Sermayesi Bileşenlerinin Kârlılığa Etkisi: Borsa İstanbul’da İşlem Gören Kimya, Plastik ve Kauçuk Şirketlerinde Bir Araştırma, Yönetim Bilimleri Dergisi, 14 (28):636.
3. Cowling, M., ve Brown, R. (2020). Did You Save Some Cash for a Rainy Covid-19 day? The Crisis and SMEs, International Small Business Journal Researching Entrepreneurship, 1-12.
4. Demir, Ö., Aydın, D., ve Sezgin, E. (2019). KOBİ’lerin Finansal Sorunlarının İncelenmesinde Dış Kaynağın Rolü: Diyarbakır İli Örneği, Muş Alparslan Üniversitesi Sosyal Bilimler Dergisi, 7 (2),227.
5. Eggers, F. (2020). Masters of Disasters? Challenges and Opportunities for SME’s in Times of Crisis, Journal of Business Research, 116,199-208.
6. Eğri̇, T., ve Doğaner, A. (2020). COVID-19 ve Ekonomik Kriz: Kobiler Özelinde Bir Değerlendirme ve Politika Önerileri. İstanbul Ticaret Üniversitesi Sosyal Bilimler Dergisi, 19 (37), 129-133.
7. He, S., ve Ausloss, M. (2017). The Impact of the Global Crisis on SME Internal vs. External Financing in China, Banking and Finance Review, 9 (1), 1-17.
8. Juergensen, J, Guimon, J. ve Narula, R. (2020).European SMEs Amidst the COVID 19 Crisis: Assessing Impact and Policy Responses, Journal of Industrial and Business Economics, 47, 499-510.

9. Kraus, S., Clauss, M., Gast, J., Zardini, A. ve Tiberius, V. (2020). The Economics of COVID- 19:Initial Empirical Evidence on How Family Firms in five European Countries Cope with the Corona Crisis, International Journal of Entrepreneurial Behavior &Research, 26 (5),1067-1092.
10. Kottika, E., Özsomer, A., Ryden, P. ve Theodorakis, I. (2020). We Survived this! What Managers Could Learn from SMEs who Successfully Navigated the Greek Economic Crisis, Industrial Marketing Management, 88, 352-365.
11. Lu, Y, Wu, J, Peng J., ve Lu, L. (2020). The Perceived Impact of the Covid-19 Epidemic: Evidence from a Sample of 4807 SMEs in Sichuan Province, China, Environmental Hazards, 19(4), 323-340. McKinsey Global Institute, Global freight flows after COVID-19: What’s next?, July 2020
12. https://www.mckinsey.com/~/media/McKinsey/Industries (10.08.2020)
13. OECD a (2020), https://www.oecd.org/economic-outlook/june-2020/ (17.09.2020)
14. OECD b (2020), http://www.oecd.org/coronavirus/policyresponses/coronavirus-covid-19-SMEs-policy-responses, (17.09.2020)
15. Omar, A., Ishak, S. ve Jusoh, A. (2020). The Impact of Covid-19 Movement Control Order SMEs’ Business and Survival Strategies, Malaysian Journal of Society and Space, 16 (2), 139-150.
16. Proença, P., Laureano, R., ve Laureano, L. (2014). Determinants of Capital Structure and 2008 Financial Crisis: Evidence from Portuguese SMEs, Procedia- Social and Behavioral Sciences, 150, 182-191.
17. Shafi, M., Liu, J., ve Ren, W. (2020). Impact of Covid-19 Pandemic on Micro, Small and Medium- Sized Enterprises Operating in Pakistan, Research Globalization,2,1-4.
18. Thorgren, S. and Williams, T. (2020). Staying Alive During an Unfolding Crisis: How SMEs Ward off Impending Disaster, Journal of Business Venturing Insights, 14, 1-11.
19. Tuğay, O., Dalğar, H., ve Tekşen, Ö. (2014). Ekonomik Kriz Dönemlerinde İşletmelerin Muhasebeye Karşı Tutumlarındaki Değişiklerin Belirlenmesine Yönelik Bir Araştırma, Muhasebe ve Finansman Dergisi, Ocak, 3.
20. Turner, D. W. (2010). Qualitative Interview Design: A Practical Guide for Novice Investigators. The Qualitative Report, 15(3), 757-759.
21. TÜİK (2015) Küçük ve Orta Büyüklükteki Girişim İstatistikleri, TÜİK Haber Bülteni, Sayı: 21864.
22. TÜİK (2020). Dış Ticaret İstatistikleri Haziran, TÜİK Haber Bülteni, Sayı: 33854
23. TÜRKONFED (2020), https://www.business4goals.org/wp-content/uploads/2020/04/COVID-19- Isletme Etki ve İhtiyaç-Anketi.pdf,(25.08.2020)
24. TÜRMOB – Türkiye Serbest Muhasebeci Mali Müşavirler ve Yeminli Mali Müşavirler Odaları Birliği (2020), “Korona Salgınının Türkiye Ekonomisine Etkisi Değerlendirmeler Raporu”, https://www.turmob.org.tr/haberler/f599274f-c33d- 48ff-bfb8-koronasalgininin-turkiye-ekonomisine-etkisi--değerlendirmeler-ve öneri-raporu (25.09.2020)
25. Uyanık, S., ve Çeliker, D. (2019). Türk Tekstil Endüstrisi Genel Durumu, Teknik Bilimleri Dergisi, 9(1), 33-35.
26. WTO (2020), https://www.wto.org/english/news_e/pres20_e/pr855_e.htm (29.08.2020).
27. Yazdanfar, D. ve Öhman, P. (2017). Financial Distress Determinants among SMEs: Empirical Evidence from Sweden, Journal of Economic Studies, 47(3), 547- 559.
28. Yıldırım, A., ve Şimşek, H. (2016). Sosyal Bilimlerde Nitel Araştırma Yöntemleri, Ankara: Seçkin Yayınevi.
29. Zubair, S, Kabir, R. ve Huang, X. (2020). Does the Financial Crisis Change the Effect of Financing on Investment? Evidence from Private SMEs, Journal of Business Research, 110,456-463.
30. Zimon, G., ve Dankiewicz, R. (2020). Trade Credit Management Strategies in SMES and the Covid-19 Pandemic-A Case of Poland, Sustainability, 12 (5),1-16.
31. Qamruzzaman, M.,( 2020). COVID-19 Impact on SMEs in Bangladesh: An Investigation of What They Are Experiencing and How They Are Managing? http:// ssrn.com/a654126 (07.08.2020)