No way for business to drop activities down
In July All-Russian Public Opinion Research Centre (VZIOM) provided data of Russian entrepreneur’s interview about conditions, factors and risks of doing business in Russia and further outlook and opportunities for this sector.
Most of businessmen estimate business conditions in our country as unfavorable and negative (71%), with only 15% of respondents perceive evidences of state interventions for support and promotion business efficiency. Most interviewees (76%), nevertheless, would prefer have own business themselves if had a chance to. Various institutional and macroeconomic concerns had caused the most negative impact in their activity, according to businessmen. That includes nationals welfare (81%), corruption prevalence (72%) and energy prices (71%). The judicial and legal system still have difficulties in conducting like proprietor protection, court system performance (62%), legislative regulation in business (62%), enforcement authorities progress (63%). The number of some domains were considered having very positively influence on long-term business development: domestically competition (47%), national and internal political stability (35%) and credit available (28%). Reduction risk in products and services demand (72%) is most likely as businessmen estimate so far. Among the key issues is taxation increasing (70%), unpredictable legislation changing (64%), costs rising (63%). Every other respondent (52%) concerns of his own security from not a perfect judicial system which sometimes is inadequate and has low rate of acquits. Emerging problems with law enforcement authorities (41%), hostile takeovers (25%), default and economy system destabilization (20%) and political situation changing (22%) remain as high probability risks. More than half respondents are very skeptical with regard to the future and expect declining business terms in five years. Only 23% of russian businessmen plans long-term business strategy today. At least three years every third entrepreneur wants to save his current level and similar number (26%) focus on the development. Also 10% think of business closing and 6% would like to sell it.
The Moscow region situation still much different from the All-Russian one. There is a rapid annual increase of region business enterprises that is more over 340 thousand now as at July 2019. This indicates very enabling business conditions in Moscow Region and highlights the extension and development perspective for entrepreneurs – noted the Moscow Region Businessman Ombudsman Vladimir Golovnev.