Fading optimism: 60% of CEOs expect positive growth dynamics for their business in 2021
Only 60% of CEOs expect positive growth dynamics for their business in 2021 according to the results of the survey “Business Forecasts 2021” conducted annually by the European Business Association among the CEOs of EBA member companies. It is worth noting that 77% of CEOs expected their business to grow according to the previous wave of the survey for 2020.
Meanwhile, 26% of CEOs expect to maintain business performance at the level of 2020, and another 14% say that their business situation will deteriorate. In addition, only a third of entrepreneurs, namely 31% plan to implement large-scale investment projects next year. business development
About a third of entrepreneurs expect an increase in income up to 10% in UAH due to business development projects. Whereas last year the majority (62%) forecast growth at 10-20%. When planning budgets for 2021, company executives set the value of the currency at an average of 29 UAH / $.
At the same time, more than half of the CEOs, namely 54%, plan to increase the salaries of employees by 5-10%. Another 21% will increase wages up to 5%, and 9% – up to 10-20%. Only 15% of companies will not increase staff salaries and no company plans to reduce it.
At the same time, most companies will rely on a restrained HR policy next year. Thus, a 60% plan to keep the company’s staff unchanged. Only 28% of companies plan to expand their staff (last year there were 46%). 12% of businesses will have to resort to staff reductions.
It is predicted that the effects of the pandemic and related restrictive measures have had a negative impact on business plans and forecasts. However, this is hardly the only reason for business complaints. We see that dissatisfaction with the current state of the court system in Ukraine has grown this year - company executives consider it even a bigger problem than corruption - for the first time in many years. Therefore, in addition to external challenges, we should pay no less meticulous attention to internal issues. Ukrainian business and society are very much looking forward to fair trials, reduced corruption, and political and economic stability.
Besides, company executives have identified the top 3 tasks from business to government for next year. They have remained unchanged for a long time, but this year the directors put the need for judicial reform and the rule of law in the first place, the combat against corruption in the second place, and then political stability and effective governance in the country.
For the reference:
Altogether, 121 CEOs of the EBA member companies took part in the “Business forecasts 2021” study. The survey consisted of 10 questions and was conducted in September 2020. The Business Forecasts survey has been conducted by the Association for the 5th year in a row.
All researches of the European Business Association you may find on the website.
Be the first to learn about the latest EBA news with our Telegram-channel – EBAUkraine.