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6 Aug 2020 – Articles

Companies try to get by with little help from their friends


Since the onset of the corona crisis, companies have cut back on advice from their network and external partners and tried to troubleshoot on their own, shows new research by Danske Bank among small and midsized Danish companies.

The Covid-19 pandemic has disrupted day to day business and created new headaches and challenges, which an increasing number of companies have chosen to keep to themselves.

New research by Danske Bank among small and midsized companies in Denmark shows a decrease from February to June in the number of companies relying on advice from their networks, consultants, accountants or banks and a corresponding increase in the number of companies choosing to troubleshoot on their own. 


Raises concern
The development is understandable in a time of urgent crisis management but it is nonetheless concerning since a crisis can make it all the more critical to get new ideas and input from the outside in order to adjust the business to new realities, says head of business customers at Danske Bank, Niels Bang-Hansen. 

”Many businesses are challenged, and their plans and goals may have been temporarily shelved but it is nonetheless during a crisis that companies can benefit the most from input and advice from their network and external business partners in order to adjust and refocus the business to new realities. In that light, it is concerning to see the increase in the number of companies choosing not to ask others for advice at a time when an outside perspective could be most valuable, says Niels Bang-Hansen. 

It is risky for a company to think that it can deal with a crisis of this magnitude entirely on its own. Economies have been hit severely and abruptly, and nothing is as it used to. It would be wise to consult with others who might have a perspective or an idea which hadn’t occurred to oneself

Niels Bang-Hansen

Head of business customers, Danske Bank


”It is risky for a company to think that it can deal with a crisis of this magnitude entirely on its own. Economies have been hit severely and abruptly, and nothing is as it used to. It would be wise to consult with others who might have a perspective or an idea which hadn’t occurred to oneself”, he continues. 

Share your concern with others
Although a majority of small and midsized Danish companies continue to expect steady or increasing sales within the next few years, overall optimism has fallen from February to June with a doubling of companies expecting a fall in revenues. The number of companies expecting a drop in revenues of more than 10 percent has increased three-fold from February to June, and with such dramatic changes in companies’ commercial outlook, seeking external advice seems all the more sensible, says Niels Bang-Hansen. 

”Share your concern with others and listen to their ideas and advice whether it is us as a bank, your accountant, consultants or people from your network. Particularly your network can be useful now because it will be people knowing you and your business making their advice all the more valuable and relevant. But above all, it is better to consult with others than to plan based solely on your own judgement and analysis, says Niels Bang-Hansen.