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Business Environment Development in the Kharkiv Region

25/ 11/ 2020
  The European Business Association conducted a survey among its member companies on the business environment development in the Kharkiv region. 61% of all respondents said that the level of ease of doing business is satisfactory, while 33% of them claim that the business climate is unfavorable, and only 6% do not face difficulties in their activities. The factors that affect business most negatively are corruption and the weak rule of law (28%), bureaucracy (15%) and outdated infrastructure (10%).  The business community complains about the work of the regional administration and the judicial system (50%), the city council (44%), the State Environmental Inspectorate and the State Labor Service (39%).  Although, the work of the regional customs and the State Tax Service of Ukraine business estimate as neutral (67%). Regarding the transport infrastructure: 44% of companies are satisfied with the level of its development, but 39% of them did not agree with that. To improve the situation, the vast majority of respondents (67%) believe that road reconstruction is necessary. Concerning the consequences of quarantine restrictions, 83% of businesses reported losses due to the lockdown, 6% of companies broke even, and only 11% of them managed to make a profit. As for the future prospects, 23% of business representatives find it difficult to plan anything and 20% are going to cut their manufacturing costs. However and despite the current crisis, 17% of companies are going to enter new markets and 13% showed willingness to implement digital technologies! To make the business environment in the region more favorable, respondents noted the need to reduce the payroll burden (27%), improve the judicial and law enforcement systems (22%), loosen control from governing bodies and cut the loan cost (18%).

The European Business Association conducted a survey among its member companies on the business environment development in the Kharkiv region.

61% of all respondents said that the level of ease of doing business is satisfactory, while 33% of them claim that the business climate is unfavorable, and only 6% do not face difficulties in their activities.

The factors that affect business most negatively are corruption and the weak rule of law (28%), bureaucracy (15%) and outdated infrastructure (10%). 

The business community complains about the work of the regional administration and the judicial system (50%), the city council (44%), the State Environmental Inspectorate and the State Labor Service (39%).  Although, the work of the regional customs and the State Tax Service of Ukraine business estimate as neutral (67%).

Regarding the transport infrastructure: 44% of companies are satisfied with the level of its development, but 39% of them did not agree with that. To improve the situation, the vast majority of respondents (67%) believe that road reconstruction is necessary.

Concerning the consequences of quarantine restrictions, 83% of businesses reported losses due to the lockdown, 6% of companies broke even, and only 11% of them managed to make a profit.

As for the future prospects, 23% of business representatives find it difficult to plan anything and 20% are going to cut their manufacturing costs. However and despite the current crisis, 17% of companies are going to enter new markets and 13% showed willingness to implement digital technologies!

To make the business environment in the region more favorable, respondents noted the need to reduce the payroll burden (27%), improve the judicial and law enforcement systems (22%), loosen control from governing bodies and cut the loan cost (18%).

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