Results of our studies

IN BRIEF

Every third enterprise received financial and organizational assistance from the state during the crisis. Half of enterprises had to limit their freedom in terms of redundancy, cutting salaries and increasing production costs.   

MOSCOWJune 7, 2010. Russian Public Opinion Research Center (VCIOM) presents a yearly study devoted to the problems of the Russian business - evaluating Russian government anti-crisis measures by Russian entrepreneurs. The opinion poll commissioned by the Russian Union of Industrialists and Entrepreneurs was conducted in August-September 2009 among top managers and owners of private companies operating in industry and construction, transport and communications, service and trade sectors.

A total of 19% of Russian enterprises received financial assistance from federal, regional or local authorities in 2009; 27% received organizational support.  

The restrictions that entrepreneurs faced when  making decisions are basically  cutting workers` salaries (21%), increasing production costs and making layoffs (20% for each). Rarer businessmen felt restricted when changing suppliers (9%), cancelling (reducing) participation in socially significant projects (8%), production units` withdrawal (cancellation) (7%), and selling shares to large investors (3%). At the same time, a relative majority of Russians (39%) report they did not face anything mentioned above.  

Most entrepreneurs say that they did not feel any administrative pressure in 2009 (52%). Only 22% report they had one restriction; 16% had two of them; 11% had three or more.

Among government anti-crisis measures, tax income rate reduction is most positively perceived by respondents:  39% said it had positive effects on business. Entrepreneurs also approve government initiatives such as reducing checking on business performance   (29%) and tax rate reduction according to simplified taxation system (26%), followed by reduction of electricity connection fee (22%), and loan interest rate backing (21%). Least approved initiatives are raised import duty on cars (positively assessed by only 7%; negatively assessed by 24%). Respondents differently perceived the initiative to increase amortization charge of particular groups of capital assets: 25% could not assess if it is positive or negative, and 47% could not assess it at all. Most respondents were undecided on the effectiveness of other measures (53-63%), such as reduction of quotas for foreign labor force (63%).

The opinion polls were commissioned by the Russian Union of Industrialists and Entrepreneurs in and conducted in August-September 2009.  1200 entrepreneurs (large, middle and small enterprises) representing three 3 economic macro sectors (industry and construction, transport and communications, service and trade) were interviewed in 40 regions of Russia.

 

Did your enterprise receive financial assistance from federal, regional or local authorities in 2009?

 (close-ended question, one answer)

 

 

Yes

No 

Hard to tell

From federal authorities

9

86

5

From regional authorities

8

87

5

From local authorities

10

83

6

 

 

 

 

 

Did you experience any pressure (or restrictions) from federal, regional, or local authorities in 2009 when deciding on the following issues...? (close-ended question, any number of answers, answer "yes")

Reducing salaries

21

Making redundancies

20

Increasing prices

20

Changing existing suppliers

9

Cutting participation in implementation of socially-significant projects

8

Withdrawing production units

7

Selling shares to investors

3

No limitations

39

Hard to tell

13

What impact did anti-crisis measures taken by Russian government have on business activity in 2009?

(close-ended question, one answer per each position)

 

Positive

Different

Negative

No impact

We escaped it

Hard to tell

Tax income rate reduction

39

18

1

22

11

8

Restricted checking on enterprises` activity

29

15

5

25

19

8

Tax rate reduction according to simplified taxation system

26

18

4

25

19

9

Reduction of electricity connection fee/ installment

22

14

5

28

24

8

Loan interest rate backing

21

16

4

27

24

8

Credit extension by major banks and those banks that received state support  

19

17

4

29

24

7

Cancellation of VAT exemption for technological equipment import which do not have a domestic counterpart

19

13

5

28

28

8

Increased amortization charge on particular groups of capital assets

16

25

4

30

15

11

Implementation of regional employment programs

15

16

5

31

26

7

Requirements to small enterprises` production purchase quotas applied to municipal procurement

11

17

5

30

29

8

Establishing price preferences for Russian suppliers when placing state procurement

11

18

5

30

28

8

Reduction of quota for foreign labor force

10

14

7

31

32

7

Increased import duties on cars

7

15

24

25

23

7

 

Note: Using materials from the site www.wciom.ru or www.wciom.com, as well as distributed by VCIOM, the reference to the source (or hyperlink for the electronic media) is obligatory!

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