Results of our studies

IN BRIEF

MOSCOWJune 2, 2009. Russian Public Opinion Research Center (VCIOM) presents the data of the annual survey devoted to the problems of the Russian business. The research was commissioned by the Russian Union of Industrialists and Entrepreneurs and carried out in September and October 2008 among business owners and top executives of manufacturing industry, construction, transport, communications, services industry and trade companies.

The majority of the business climate indicators in Russia show positive dynamics over the recent two years. The good example of that is the parameter of the attitudes of Russians towards entrepreneurs: on a 7-point scale (where 1 point means "very bad" and 7 points mean "very good") the average point has increased from 3.86 in 2007 to 4.25 in 2008. Such indicator as "direction of political developments" also shows positive changes (the average point has increased from 4.27 to 4.52). The following indicators of the entrepreneurs` perception of the country in general keep positive dynamics as well: tax rates (from 3.32 to 3.41), development of legislative framework of entrepreneurship (from 3.17 to 3.29), freedom of business and authorities from corruption (from 3.03 to 3.19), the level of social responsibility of business (from 3.02 to 3.13), legal protection of private property (from 2.94 to 3.11).

 

However, several indicators of the business climate have worsened: such as regional authorities activity to modernize business infrastructure (the average point has decreased from 3.73 to 3.67), the possibility for entrepreneurs to find a niche in other region market (from 3.74 to 3.61) and, to a lesser extent, the relationships within the business community (from 4.59 to 4.54).

 

Among the most crucial obstacles to entrepreneurship activity in Russia respondents mentioned the following: the lack of qualified personnel (60%) and the growth of prices (52%). Compared to 2007, entrepreneurs put more attention to these factors (in 2007 - 53% and 38% respectively). There were also named such problems as extremely high tax rates (43%), corruption (42%), high administrative barriers (41%), followed by unfair competition  (29%), inadequate protection of property and contract law rights (23%), difficulties of access to external funding (17%), ineffective judicial system and poor state governance (15% for each), excessive dependence of economy on primary commodity exports (14%), the lack of clear targets of the country development (10%), poor quality of corporate governance (9%).

 

According to the entrepreneurs` forecast, the main problem for the Russian business in next two or three years is going to be the lack of qualified staff (76% of respondents think so). The second position is held by the active competitive environment (60% of respondents). Respondents are less worried about such problems as lack of infrastructure (45%), access to energy resources (42%), financial resources (40%), logistics resources (34%), technology and high technology resources (33%).

 

The initiative Russian opinion poll commissioned by the Russian Union of Industrialists and Entrepreneurs was conducted in September and October 2008. The method of personal formal workplace interview was used to interview 1200 respondents in 40 regions of Russia - 30 respondents per each region.

 

Dynamics of the main indicators of the business climate in Russia

(average points from 1 - "very bad" to 7 - "very good")

 

2007

2008

successful business development

4.65

4.63

relationships within the business society

4.69

4.54

directions of political developments

4.27

4.52

attitudes of the population towards entrepreneurs

3.86

4.25

the federal authorities` politics compliance with the interests of business development

3.85

3.85

activities of the regional authorities to modernize business infrastructure

3.73

3.67

nature of tax administration

3.59

3.63

possibility to settle in other region market niche

3. 74

3.61

system of licensing, supervising and monitoring

3.63

3.49

tax rates

3.32

3.41

development of legislative framework of entrepreneurship

3.17

3.29

freedom of business and authorities from corruption

3.03

3.19

level of social responsibility of business

3.02

3.13

legal protection of private property

2.94

3.11

possibility of starting a business from scratch

2.88

2.89

In your opinion, what are the main obstacles to entrepreneurship activity in Russia?

 (close-ended question, not more than five answers)

 

2007

2008

lack of qualified personnel

53

60

growth of prices

38

52

extremely high taxes/poor tax governance

45

43

corruption on all levels of power

43

42

high administrative barriers

42

41

unfair competition

29

29

inadequate protection of property and contract law rights

24

23

difficult  access to external funding

15

17

ineffective judicial system

16

15

poor state governance

17

15

excessive dependence of economy on primary commodity exports

12

14

the lack of clear targets of the country development

10

10

poor quality of corporate governance

11

9

In your opinion, will the following factors become a big problem for your business in next two or three years?

(close-ended question, one answer per each position, the total share of respondents answered "yes" and "no" are shown)

lack of qualified personnel

76

active competitive environment

60

lack of infrastructure

45

access to energy resources

42

access to financial resources

40

access to logistics

34

access to technologies/high technologies

33

 

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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