Transcript Document

Business Survey 2013
November 13, 2013
Belgrade
Business Survey 2013
2
Methodology
Realization: research was conducted in the period between 9th of September and
4th of October 2013
Target population: Private business entities in Serbia with 3 or more employees
Sample frame: List of all business entities (enterprises and establishments)
registered at the Serbian Business Register (2012)
Sample size: 1029 business entities
Stratification: according to region, economic activity of business entities and size
Method of data collection: Face-to-face interviews in company offices
Average duration of the interview: 50 minutes
3
Business Survey 2013
4
Characteristics of Surveyed Companies
% of participants in survey
Item
Measure
# Companies participating in survey / # invited
1029 / 3996
Founded before / after 2000
49% / 51%
Profitable / unprofitable 2010-12
2010: 90% / 10%
2011: 89% / 11%
2012: 89% / 11%
Annual Revenues
€ 500,000,
26%
Employment
20, 15%
5, 33%
€ 100,000,
42%
10 - 20, 16%
€ 100,000 500,000, 32%
5
5 - 10, 36%
Sales by Market
Average for All Surveyed Companies
Former
Yugoslavia
countries
(excluding
Slovenia), 4%
Other
countries (the
EU, Russia,
etc), 3%
Other towns /
regions, 29%
Hometown,
64%
6
Expectations for the near future
Do you expect increase, decrease or no change in that area/aspect?
Pessimistic
General expectations
2011
8%
Neutral
47%
2012
12%
2013
9%
Optimistic
45%
58%
30%
60%
31%
Specific expectations
Decrease
No change
2011
Introduction of new
products/services
2012
2013
2011
Net profit
2011
2012
2013
42%
9%
52%
52%
5%
39%
58%
14%
2012
2013
Number of employees
6%
Increase
23%
16%
11%
15%
12%
35%
35%
51%
43%
45%
34%
36%
58%
31%
66%
67%
19%
7
20%
Gender differences
Work force
Ownership structure
Men
Women
11.2
Male majority owned
Female majority owned
79%
78%
69%
7.4
26%
2.0
Employees
(on average)
15%
1.4
Owners/Managers
(on average)
69% of the businesses have only up to 5 female
employees
16% of the companies have only female managers,
while 61% have only male managers
Total
13%
Enterprises
Entrepreneurs
Significantly more “female businesses” are
present among entrepreneurs comparing to
enterprises
8
Business Associations
Membership 2013
13%
13%
Total
Manufacturing
33%
23%
20%
12%
7%
Trade
Services
Small
Negative
Evaluation 2013
Advocating to the Government for the regulatory
reforms
Medim
Neutral
40%
Large
Positive
38%
15%
Organization of business fairs and support in
placement of products
27%
40%
26%
Training, education and information dissemination
26%
41%
27%
Membership by year
2011
36%
2012
2013
18%
13%
Business Survey 2013
10
Summary
Significant Improvement
Corruption
Public procurement
Business licensing
Inspections
Senior management time dealing with red tape
Transparency and predictability for doing business
Public private dialogue
Worse
Court procedures
Labor Law procedures
Customs and external trade procedures
VAT rates
Excise taxes
Customs duties
Quality and service of financial institutions
Some Improvement
Time and money spent on regulatory issues
Wage taxes and contributions
Enforcement of judgments
Exchange rate volatility
Illiquidity constraints
Duration of loan approval process
No Improvement
Construction permits
Administrative procedures
Para-fiscal charges
Tax administration
Inflation
Interest rate volatility
Access to finance
Collateral requirement
Negative Impacts on Businesses
Please assess the impact of the following elements on your business
(percentage of negative ratings)
81%
77%
72%
Wage taxes and contributions
61%
61%
66%
VAT
49%
Tax administration
63%
65%
77%
75%
74%
Other obligatory (quasi-fiscal) charges
62%
Administrative procedures
Inspection surveillance
Payment transactions including time and money
Labor law procedures and requirements
Obtaining of the business licenses and related requirements
Obtaining of construction permits and related requirements
Court procedures and requirements
Customs and external trade procedures
70%
66%
25%
31%
43%
43%
43%
44%
34%
39%
45%
37%
42%
33%
38%
44%
48%
43%
49%
52%
28%
33%
40%
2011
2012
2013
12
Time and money spent on regulatory issues
During the last 12 months has your company spent more or less money and time dealing
with regulatory issues compared to the previous year?
Money
More money
The same amount of
money
Less money
Time
More time
The same amount of
time
Less time
2011
2012
2013
2011
2012
2013
56%
47%
33%
47%
37%
31%
40%
50%
63%
49%
56%
66%
4%
3%
4%
3%
7%
3%
13
Senior management time spent in dealing
with regulatory requirements
What is the amount of senior management time spent in
dealing with regulatory requirements?
2011
2012
2013
Up to 10% of work time
17%
12%
23%
From 10 to 20% of work time
29%
26%
50%
From 20 to 50% of work time
42%
44%
20%
More than 50% of work time
12%
16%
7%
14
Corruption in public administration
Effects of
corruption on
business
It affects a lot
2011
Sometimes it affects
2012
Does not affect at all
2013
To what extent does corruption in public
administration affect your business?
41%
38%
20%
33%
16%
Yes, we had to pay 2011 4% 8%
Blackmail by a
public servant
Reported use of
private
connections
Yes, but we didn't
pay
No, I have no such
experience
46%
Have you experienced blackmailing by a public
servant in an administrative procedure?
88%
92%
2013 1% 5%
94%
2011
Rarely
2012 10%
2013
21%
8%
26%
38%
2012 2%6%
Regularly
No, never
41%
Have you ever used some private connections
in dealing with public administration issues?
33%
46%
40%
20%
51%
72%
15
Public procurement
Base: Those who have experience with public tenders: (2011=400, 2012=400, 2013=293)
Connections with political
parties
Total
Private connections
Total
Bribing members of the
tender panel
Total
3.7
3.1
3.1
2.6
How often the
following
circumstances
contribute to winning
on public tenders?
4.1
3.9
3.6
2011
3.2
3.1
2012
2013
The best financial offer
The best technical capacity
and experience
Total
Total
3.1
3.3
2.7
2.8
3.1
3.8
Marks from 1 to
5, 1 meaning
never and 5
meaning often
16
Construction permits
Do you agree with the following statements?
I don’t agree
Costs related with construction permits are
moderate
Don't know
81%
Construction permits can be obtained in a
reasonable time
16% 3%
64%
Construction permits are now easier to obtain
than in 2009
Simplification of construction permitting would
enable me to expand my business
I agree
35%
47%
9%
34%
1%
18%
89%
2%
17
Inspections
What was the most frequent inspection in 2012 in your company?
Base: Those who were
visited by inspections
(816)
Tax inspection
27.6%
Market inspection
25.6%
Labour inspection
22.5%
Sanitary inspection
10.8%
Traffic inspection
3.2%
Tourist inspection
2.5%
Environmental inspection
2.4%
Communal inspection
2.1%
Veterinary inspection
Base: Those who were visited by
inspections
(2011=738, 2012=755, 2013=816)
2.0%
Basic information on
inspections:
2011
2012
2013
2128 €
1655 €
868 €
Average amount of time (in hours) spent by
management
70
34
17
Average number of visits in the year before
5.5
6.0
3.1
Average number of visits in the current year
4.8
3.8
2.1
Average amount of fines imposed
18
Para-fiscal charges
How burdensome are the following taxes and charges for business?
not burdensome (1+2)
burdensome (4+5)
Administrative taxes
Fees for registration of motor vehicles
Compensation for land use
Company name display fee
Environmental taxes
Fee for use of water resources
Don't know
Refusal
21%
Not applicable
45%
20%
41%
25%
8%
32%
28%
17%
34%
33%
38%
25%
21%
10%
10%
11%
19
The enforcement system
How would you rate the efficiency of the system for enforcement of judgments?
Poor/Very poor
Total
2011
98%
2%
2012
96%
4%
2013
Enterprises
87%
13%
2011
97%
3%
2012
96%
4%
2013
Entrepreneurs
Vey good/Excellent
2011
2012
2013
88%
13%
98%
2%
93%
7%
88%
*to achieve reliable comparability, only clearly negative and clearly positive marks
were included, due to unequal number of missing values
12%
20
Employment Contracts
Temporarily employed
41%
No temporarily employed
Between 1 and 5 temporarily…
Between 5 and 10 temporarily…
Between 10 and 20 temporarily…
More than 20 temporarily employed
Out of total number of employees in
your business, how many are
permanently employed?
34%
25%
20%
12%
4%
3%
8%
3%
2%
5%
3%
2%
65%
72%
Out of the total number of employees in
your business, how many are working
on a temporary contract?
2011
2012
2013
Permanently employed
No permanently employed
Between 1 and 5 permanently
employed
Between 5 and 10 permanently
employed
Between 10 and 20 permanently
employed
More than 20 permanently
employed
1%
3%
3%
38%
28%
22%
23%
17%
13%
14%
16%
13%
13%
49%
47%
2011
2012
2013
21
Business Survey 2013
22
Economic factors related to competitiveness
Please evaluate how the following factors affect the competitiveness of your business
Negative
Neutral
Inflation
Positive
89%
10%1%
Wage taxes
80%
18%
2%
VAT rates
78%
20%
2%
Exchange rate volatility
77%
21%
1%
Interest rate volatility
70%
28%
2%
Poor access finance
61%
38%
2%
Illiquidity constraints
60%
38%
2%
Asset price volatility
47%
Customs duties
46%
Excise taxes
46%
51%
1%
51%
53%
3%
23
1%
Grey economy estimates
According to your estimate, out of the total number of employees working in enterprises that operate in the
same industry as your company, for what percentage of employees do the enterprises pay (1) full contributions
on salaries, (2) only partial contributions on salaries, and (3) no contributions on salaries at all?
73%
Pay full contributions
73%
69%
15%
Pay only partial contributions
15%
13%
12%
Pay no contributions at all
11%
18%
Total
Enterprises
Entrepreneurs
24
Budget cuts aimed at reducing taxes
Which budget cuts for government services would you support in order to lower taxes?
Supported budget cuts:
75%
Cuts in foreign investment tax incentives
60%
48%
54%
Cuts in price subsidies
45%
27%
53%
Cuts in subsidized inputs
39%
27%
43%
Cuts in subsidized loans
2011
28%
29%
52%
Cuts in investing in training for business
39%
24%
2012
2013
31%
Cuts in investing in infrastructure
22%
16%
25
Funding sources
What percentage of your business’ financing comes from…
81% of total funding comes from business owners themselves
Banks
Leasing
Loans by state institutions
2012
2013
Family and/or friends
Foreign sources of funding
Grants/Non-repayable funds
70%
64%
23%
15%
3%2%2% 5%
2%0%
1% 1%3%
8%
26
Types of finance used
Please indicate the type of finance you have used and how often
Didnt use
Term loans
Overdraft
Rarely
Revolving credit
Occasionally
Guarantees
Leasing
Often
Letter of Credit
Factoring
All the time
Corporate Bonds
No answer Issuance of shares
23%
12%
39%
30%
11%
19%
61%
60%
66%
82%
85%
88%
89%
19%
11% 6%
16%
9% 6%
12%
11% 6%2% 8%
9% 12% 10%
7%
10% 11% 4%2%7%
8% 2%
0%8%
4% 9%
3% 8%
8%
Type of finance used often and all the time:
2011
Term loans
2012
Overdraft
2013
19%
15%
21%
30%
26%
11%
10%
12%
9%
11%
8%
Guarantees
Revolving credit
Letter of Credit
25%
3%
2%
0%
27
Suitability of the available finance
How suitable is the available finance to your needs?
96%
93%
90%
Interest rates and fees
74%
73%
76%
Collateral requirements
Denomination of the loan in foreign currency
Denomination of the loan in local currency (dinars)
Quality of service and support of financial institutions /
banks
Duration of loans
Duration of the loan approval process
Reporting requirements by the bank
70%
72%
56%
64%
50%
50%
64%
67%
54%
57%
61%
56%
54%
2011
2012
2013
49%
52%
28
Business Survey 2013
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Impact of reform efforts
To what extent do you agree or disagree with the following statements?
Disagree (1+2)
Transparency and predictability
for doing business in Serbia
increased in the last 12 months
Neutral
2011
76%
2012
73%
2013
Disagree (1+2)
Quality of public dialogue and
debate on macroeconomic and
fiscal issues is improved in the
last 12 months
55%
74%
2012
8%
9%
22%
68%
2013
56%
23%
33%
Neutral
4%
9%
11%
Agree (4+5)
2011
2013
19%
Agree (4+5)
2011
2012
20% 4%
36%
Neutral
Disagree (1+2)
I am aware of and understand
the GoS economic growth
strategy for businesses
Agree (4+5)
78%
58%
50%
17% 5%
28%
35%
14%
15%
30
Impact of reform efforts
To what extent do you agree or disagree with the following statements?
Desagree (1+2)
The access to finance for your
business is improved in the last
12 months
Neutral
Agree (4+5)
2011
73%
20%
6%
2012
73%
20%
7%
2013
Disagree (1+2)
64%
Neutral
Business ability to participate in
reforming laws related to the
business environment has
improved in the last 12 months
82%
2012
63%
Neutral
2011
2012
2013
16% 2%
71%
2013
Disagree (1+2)
7%
Agree (4+5)
2011
The burden of laws and
regulations decreased in the last
12 months
29%
22%
30%
7%
7%
Agree (4+5)
80%
72%
63%
16% 4%
22%
30%
7%
7%
31