13 October 2020, 14:10
Covid Special, part 2
The COVID survey ran in cooperation with CECE and ERA and previously published on LECTURA Press portal also partly focused on the size of the company of which are the respondents members. The responses indicated that most of them work in organizations having less than 50 employees. However, small companies are usually considered to be the most endangered by the Coronavirus crisis impact. Therefore, the main objective of the current article is to explore whether there are some differences in coronavirus crisis impact based on the company size in the number of employees in our sample. Despite the fact our preliminary results show no considerable differences, we believe that a more in-depth exploration of the survey data would explain them.
How big are the companies in which the dealers from the Covid survey work?
One of the questions from the dealers' version of the survey asked respondents to indicate how many employees work in their company. The analyses of the question brought us to the findings presented in the bar chart below. Most of our respondents work in small companies keeping maximally 5 employees (29,3%). On the other hand, companies ranging in their size from 6 to 10 employees were the least represented in the sample (16,9%). Results for other groups are as follows: 26,31 % of respondents claimed they work in medium companies keeping between 11 and 50 employees, and 27,7% are members of companies with more than 50 employees. Thanks to the statistical testing, we may confirm that the distribution we have just presented reflects the real situation in an almost certain manner.
Has the crisis affected companies differently based on their size?
So far, we have discussed how big are companies dealers usually work in. However, the main objective of this current article is to explore whether the respondents from differently sized companies experienced the impact of the coronavirus crisis differently. First of all, we compared whether they vary in the form of crisis impact. Regardless of the size of the company in a number of employees, we discovered no differences. This finding allows us to rely on results for the overall sample - therefore the most respondents from companies of all sizes stated they had experienced a decrease (57,6%) followed by the responses indicating no change (37,9%). Only a small number of respondents claimed they experienced an increase (4,5%).
However, the analyses of respondents only from the decrease group provided us with more interesting results. Despite the fact there are no statistically significant differences among the groups of respondents from differently sized companies when comparing the form of an impact (increase/decrease/no change), it seems that the degree of decrease somewhat varies across the different groups of respondents based on the size of company they work in.
The respondents from the smallest companies, ranging from 1 to 5 employees, reported the most balanced distribution of the options. When compared to other clusters of companies, they reported the highest rate of the lowest decrease (decrease up to 10%). However, most often of the groups they claimed they had suffered from decreases deeper than 50% at the same time. Therefore, although they were the group who overall reported the decrease the least often, it was the highest decrease of all respondents.
Who are the people working in differently sized companies
In the light of these findings, we further explored who are the people working in the differently sized companies based on the primary type of business. The most obvious is the difference between the new and old machine sales companies. The bigger the company, the more often it focuses on the new machine sales as opposed to the used machine sales.
This brings us to the idea that results obtained for the size of a company may be actually explained by the primary type of business. Therefore we conducted further analyses and discovered companies focused on used machines sales were most often represented (compared to other types of businesses) in the response decrease (when the form of impact is considered) and decrease below 50% (depth of impact decrease).
Although, lack of a larger sample does not allow us to conduct further analyses where all possible combinations of the size of company and type of business would be considered (e.g. compare new machine sales company with less than 5 employees and used machine sales company with more than 50 employees), we claim our findings still provide the readers with interesting results and a clue where to guide their own research if they plan some. It is also important to consider the size of the company can also be determined on the basis of other aspects than the number of employees.
Would you like to know more about the impact of COVID pandemic on the construction industry? Click here for the full report by LECTURA, ERA and CECE!
or continue reading the Covid Special ==> Part 1: The case study on German and British machine owners: similarities and differences in the coronavirus crisis management
Source: LECTURA Verlag GmbH