Acting CEO of "Khalifa Fund for Enterprise Development", Moza Obaid Al-Naseri, revealed to "Emirates Today" that the fund supports small and medium-owned projects owned by citizens affected by the repercussions of the emerging "Corona" virus (Covid-19), through seven measures: Structuring loans for some affected projects, rescheduling allocations of some loans based on new needs and plans, and communicating with real estate development companies and real estate owners, to discuss the possibility of postponing or extending the rental installments, as well as providing technical and administrative consultations, providing free specialized training courses and spreading awareness , And communicate with the competent authorities to explain the best ways for members to benefit from the initiatives, and finally to postpone the monthly installments of projects funded through the fund for a period of three months.
Al-Nassiri added that the most small projects affected by the repercussions of "Corona" in the country are tourism, recreational and sports projects, fitness centers, restaurants, the retail sector, and nurseries.
Economic incentives
Al-Nasiri pointed out that there is a large and influential government effort led by the Department of Economic Development in Abu Dhabi, to alleviate the consequences of "Corona" on the national economy in general, and the small and medium-sized enterprises sector in particular.
She emphasized that the government sought to provide a set of incentives to support the economy, including programs to reduce and eliminate government service fees, programs to reduce rent for commercial and industrial units, and to provide guaranteed loans from the government, through banks, in addition to training and technical advice programs for project owners.
She explained that the "Khalifa Fund" prepared a detailed study on the effects of the Corona pandemic on small and medium enterprises, and the measures that companies should take to overcome this crisis, pointing out that the study revealed nine measures that would reduce the repercussions of the pandemic.
Spending control
Al-Nasiri stressed the need for the owners of the projects themselves to make plans to control spending, diversify sources of income, adjust the business model, as well as define their needs, and take advantage of economic incentives launched by government agencies, as well as technical advice and training workshops available through digital channels.
Fund Initiatives
She emphasized that the "Khalifa Fund" is currently working on several initiatives to mitigate the effects of the crisis, especially with regard to marketing local products through partners, sales outlets, and social media platforms, linking project owners to channels, sales outlets and electronic platforms, and providing logistical support services, by establishing links With private companies, to provide this service at preferential rates to fund members, as well as to spread awareness of the importance of the local product and support it. She added that the fund is also working on an initiative that aims to support and encourage export operations and access to foreign markets, by providing detailed support according to the analysis of the needs of exportable companies, pointing out that this is done through three basic stages: awareness, work on the readiness of entrepreneurs and projects, then start To export.
Most affected
Al-Nasiri confirmed that the companies and small and micro enterprises are the most affected locally and globally as a result of the repercussions of the emerging “Corona” virus, for the most important reasons that most of these companies do not have a high financial solvency to bear any additional or urgent costs, especially with the decline in income during the crisis, pointing out that Specialized studies have shown that small companies cannot survive without a balanced cash flow for more than 27 days, and that many of them are no longer a crisis management plan, and in some cases no reserve stock of cash has been used for use in times of crisis.
9 measures to reduce the consequences of "corona"
1- Analyzing the monthly costs and expenses, determining the priority and importance of these costs and working to reduce them.
2- Meeting with employees, reviewing the payroll, approving paid vacations, or reducing salaries, according to the situation
The company, in coordination with the legislative authorities in the state, in a manner that does not violate the laws and does not harm the interests of the employees.
3- Looking for new and diversified sources of income to increase income by adjusting the business model.
4- Keeping up with technology and finding suitable solutions to work under these conditions.
5- Raising the efficiency and productivity of employees.
6- Laying out marketing plans and seeking to preserve the dealers.
7- Maintaining employees and providing them with training programs to raise efficiency.
8- Adapting to the current situation and developing a crisis management plan.
9- Respond to health and safety instructions.