Every second entrepreneur is skeptical about the future; however most of them do not want to abandon business.

MOSCOW, July 11, 2019. Russian Public Opinion Research Center (VCIOM) presents the findings of a survey about modern Russian business, factors and risks affecting the conduct of business in Russia and prospects for business development.

Most of Russian entrepreneurs say that conditions for business operations in Russia are unfavorable (71%). Just 15% consider that the government is taking active measures to support business. Despite that, most of respondents (76%) would choose to run their own business in case they had a choice.

Entrepreneurs mention both macroeconomic and institutional problems as negative factors affecting business operations in Russia. They are as follows: financial well-being of Russians (81%), corruption levels (72%), and oil prices (71%). Certain negative factors refer to justice system: the level of legal protection of the business owners, justice system functioning (62%), legal regulations in business (62%), regulatory and supervisory authorities (63%). However entrepreneurs say that domestic market competition (47%), stable political system and internal political situation (35%), and availability of credits (28%) positively shape business activities.

Decreased demand for goods and services (72%) is the most likely risk mentioned by entrepreneurs. The key risks involve growth of taxes (70%), unpredictable changes in legislation (64%), and high costs (63%). Every second respondent (52%) has concerns related to justice system imperfections and low rate of not guilty verdicts. Problems with law-enforcement bodies (41%) and illegal seizure (25%) also pose high risks. The least probable risks involve national default and economic system destabilization (20%) and changes in political situation (22%).

More than half of respondents (51%) are skeptical about the future; they expect deterioration in the business conditions in a five-year plan perspective. Only 23% of Russian businessmen think they will be able to implement their long-term strategies. Every third entrepreneur intends to keep the business operations at the current level; about the same share of respondents (26%) prefers to get short-term returns. A further 10% ponder over closing down their businesses; 6% would like to sell them.

The national survey was commissioned by “Platforma” Social Design Center and conducted June 11 through 17, 2019. The survey was telephone-based and involved 500 respondents representing Russian large, medium and small enterprises. The margin of error at a 95% confidence level does not exceed 4.5%. In addition to sampling error, minor changes in question wording and different circumstances arising during the fieldwork can introduce bias into the survey.

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