Most entrepreneurs in Western Ukraine do not consider the business climate in the region favourable
According to the survey on the assessment of the business environment in the region, only 3% of respondents said that doing business in the region is easy. Therefore, unfortunately, it is difficult to call such a business climate favourable.
Thus, 54% of respondents indicate that high levels of corruption and unsatisfactory infrastructure have a negative impact on doing business in the region, 24% believe that the climate is unfavourable due to excessive bureaucracy, and 16% say there is a lack of rule of law.
One of the traditional problems that negatively affect doing business in the region is the low level of trust in the judiciary as a whole. The negative consequences of the introduction of restrictive measures to combat coronavirus disease have also been added. In particular, the loss of business income during the quarantine period ranged from 10% to 50% for the majority of respondents. However, 3% of respondents said that the business was profitable and 17% did not suffer any losses.
It is also worth noting the negative dynamics in assessing the work of territorial public authorities. More than 50% of respondents rated such cooperation as neutral, which indicates that business is trying to avoid relations with the authorities. Only 7% of respondents are satisfied with the work of the city council, 7% – with the work of the Regional Administration, and 10% – with the work of the judiciary, and no one who would positively note the work of the national police.
Forecasts for the next periods are also not very optimistic. About 20% of companies surveyed plan to cut costs, only 10% – to enter new markets, and 4% are convinced that today it is difficult to plan anything. However, 21% of directors plan to expand the company and attract additional investment.
What should be changed to make the business environment more favourable and the region’s economy grow? According to business, it is necessary to correctly and clearly organize the processes of interaction of various institutions that directly or indirectly affect the business. Clear rules of the game will help businesses focus on business development and the quality of a product or service, and will not take time to defend. Of course, first of all, it is necessary to improve the infrastructure in terms of road reconstruction and modernization of railways. It is important to develop anchor industries, such as high-quality metalworking, deeper processing, provision of related services (electroplating, heat treatment, etc.), laboratories, etc.
Reducing the burden on the payroll, combating the shadow economy and raiding, reducing pressure from regulators, improving the law enforcement system, according to respondents, will also have a positive impact on the business environment not only in the region but in the country as a whole.