Results of our studies

MOSCOW, February 28, 2008 Russian Public Opinion Research Center (VCIOM) presents information on how successfully the entrepreneurs estimate their business is developing; what the major impediments are that stay in the way of Russian business and economic development of the country.

The majority (54%) of Russian businessmen positively estimate the successful development of their business (at a level of 5-7 points on a scale from 1 to 7). Only 15% of respondents characterize their business as unsuccessful. The mean score totals 4.65, which is noticeably higher than the median value (4 points).

Estimations of success that entrepreneurs provide concerning their own business differ depending on the branch affiliation of the enterprise and its status (size). Owners and top-managers of large enterprises are more optimistically disposed (4.93 points), than representatives of medium (4.63 points) and small business (4.40 points). Businessmen working in the service and trade sphere provide more optimistic estimations (4.77) than representatives of enterprises working in the industry and construction, transport and communication (4.61-4.63 points).

Problem № 1 in the list of the most acute ones that Russian businessmen today have to face is lack of skilled workers. Every second (52%) respondent complains of it, moreover, representatives of large business, industry and construction do it still more often (57% in each of the groups). The second place in the problems list belongs to tax policy (the size of tax rates, which respondents consider to be too high, inefficient tax administration as a whole) and prevalence of corruption at all levels of authority (42-45%).  Businessmen less often (in 16-24% of the cases) speak of insufficient protection of property rights and the contract rights, inefficient state administration and judicial system. The questions concerning the current political situation, the clearness of the goals and guiding points of the state development do not really seem to be a major obstacle to business (7-10%).

However, in the list of circumstances which businessmen think mostly interfere with Russia’s entering the list of the most developed countries in the world, they first of all specify "inefficient administration and economic policy" (37%). At the same time, businessmen recognize that one of the reasons why Russia’s economy is not developing all too quickly lies obviously in the fact business acts egoistically and is only interested in the here-and-now profit (31%). The third place in the list of the basic obstacles in the way of Russia’s entering the list of world leaders belongs to corrupt authorities and business (33%). A significant share of respondents (more than 20%) indicate that the underdevelopment of market institutes, low labour productivity, the economy’s focus on raw material industry, technological inferiority and "unfriendly" tax situation in relation to business all negatively influence the course of economic development in the country.

The survey of 1200 Russian businessmen (owners and top-managers of private companies) was carried out in September - October 2007 in 40 constituent entities of the Russian Federation. The selection represents the enterprise community according to branch affiliation (based on three macro branches, i.e. the industry and construction; transport and communication; service and trade) and is proportional to their share in the national economy and the size of the enterprises (according to the number people employed).

 

How successfully is your business developing at the present moment? (Estimation provided on the scale from 1 to 7, average score is given)

Total entrepreneur respondents

4,65

Status of business that the respondent represents

 

Small

4,40

Medium

4,63

Large

4,93

Branch

 

Industry and construction

4,61

Transport and communication

4,63

Service and trade

4,77

What do you think are the most topical problems that stay in the way of entrepreneurial activity in Russia? (Up to five options)

Lack of skilled workers

52

Excessively high taxes / ineffective tax administration

45

Corruption at all levels of authority

43

High administrative barriers

42

Price increase

37

unfair competition

29

Insufficient protection of proprietory right and contract law

24

Ineffective state administration

18

Ineffective judiciary system

16

Complicated access to foreign financing

15

Excessively high dependence of the economy on the export of raw materials

12

Low quality of corporate governance

11

Lack of clear goals or development lines for the country

10

Political ambiguity

7

An excessive share of the state sector in the economy

3

Terror

2

Other option

3

There are no problems standing in the way of entrepreneurial activity in Russia

0

Hard to say

1

What do you think mostly impedes economic development in Russia and her entering the list of the world’s most developed countries? (Up to three options)

Ineffective state administration and economic policy

37

Corrupted authority and business

33

The business’ egoism, interest in here-and-now profit only

31

Unfriendly tax situation

29

Technological inferiority from the developed countries in the majority of branches

27

Excessive focus on the raw material industry inherited from the past

26

Low working efficiency of our employees

23

Immaturity of our market institutes

21

„Brain drain“ from the science and knowledge-intensive production into the West

17

Impediments and obstructions coming from the West that sees no profit in the revival of the Russian power

9

Other option

2

There is nothing to stand in the way of Russia's economic development

1

Hard to say

3


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