Three quarters of Dnipro entrepreneurs report that it is difficult for them to do business

07/ 10/ 2022

This is the opinion of 75% of entrepreneurs of the Dnipro region surveyed by the European Business Association, and 38% of them consider the conditions of doing business to be very difficult. Another 25% estimate current conditions as satisfactory, compared to 43% last year. The overall index amounts to 1.88 points out of 5 possible compared to 2.34 points last year. According to estimates of 68% of businesses, the conditions for entrepreneurship have worsened over the past year. Among the factors that currently have the greatest negative impact on business, survey participants singled out the loss of assets in the occupied territories, difficulties with logistics, and the outflow of personnel abroad. According to the results of the survey, 38% of companies have representative offices or assets in temporarily occupied territories. Three-quarters of entrepreneurs in the Dnipro region report losses of up to 50% of income, and another quarter suffered losses of more than 50%. Every fifth entrepreneur was forced to relocate the business –within Ukraine or abroad. Another 56% report that there is no need for this, and 19% – that there is no such possibility. In the short term, the companies plan to focus on maintaining operations under martial law, entering new markets, and cutting costs. Further stabilization of the situation in the region, according to business, will depend on the restoration and preservation of infrastructure, as well as the introduction of grant programs to support businesses and reduce the burden on the labor fund. Among the infrastructural changes, business expects the restoration of the full operation of seaports, as well as the restoration and reconstruction of airports, and the creation of industrial parks. This year, Dnipro entrepreneurs significantly improved their experience of interaction with regional authorities. Thus, business has satisfactorily assessed the work of local courts, recruitment and social support centers, regional customs, the city council, and the tax service. Meanwhile, the work of the military administration and the National Police was assessed positively. For the most part, business also assesses the level of development and volumes of e-services satisfactorily – this is what 75% of companies think. Last year, only 52% of companies gave a satisfactory assessment. Another 13% consider it good, and 12% - unsatisfactory. According to the business, for the successful post-war recovery of the state, state support in restarting businesses, incentives for new investments and job creation, reduction of bureaucracy in permitting procedures, development of industrial parks, and improvement of customs and tax services will be necessary. For reference: The survey was conducted among the member companies of the EBA Dnipro Office from August 15 to September 21, 2022. The general news is available at the link.

Among the factors that currently have the greatest negative impact on business, survey participants singled out the loss of assets in the occupied territories, difficulties with logistics, and the outflow of personnel abroad. According to the results of the survey, 38% of companies have representative offices or assets in temporarily occupied territories.

Three-quarters of entrepreneurs in the Dnipro region report losses of up to 50% of income, and another quarter suffered losses of more than 50%. Every fifth entrepreneur was forced to relocate the business –within Ukraine or abroad. Another 56% report that there is no need for this, and 19% – that there is no such possibility.

In the short term, the companies plan to focus on maintaining operations under martial law, entering new markets, and cutting costs. Further stabilization of the situation in the region, according to business, will depend on the restoration and preservation of infrastructure, as well as the introduction of grant programs to support businesses and reduce the burden on the labor fund.

Among the infrastructural changes, business expects the restoration of the full operation of seaports, as well as the restoration and reconstruction of airports, and the creation of industrial parks.

This year, Dnipro entrepreneurs significantly improved their experience of interaction with regional authorities. Thus, business has satisfactorily assessed the work of local courts, recruitment and social support centers, regional customs, the city council, and the tax service. Meanwhile, the work of the military administration and the National Police was assessed positively.

For the most part, business also assesses the level of development and volumes of e-services satisfactorily – this is what 75% of companies think. Last year, only 52% of companies gave a satisfactory assessment. Another 13% consider it good, and 12% – unsatisfactory.

According to the business, for the successful post-war recovery of the state, state support in restarting businesses, incentives for new investments and job creation, reduction of bureaucracy in permitting procedures, development of industrial parks, and improvement of customs and tax services will be necessary.

For reference:

The survey was conducted among the member companies of the EBA Dnipro Office from August 15 to September 21, 2022. The general news is available at the link.