Transcript Document

Business Survey 2014
#1000preduzeca
November 21, 2014
Belgrade
Business Survey 2014
#1000preduzeca
Methodology
Realization: research was conducted in the period between 3rd of September and
1st of October 2014
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: 1009 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
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Business Survey 2014
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Characteristics of Surveyed Companies
% of participants in survey
Item
Measure
# Companies participating in survey / # invited
1009 / 3988
Founded before / after 2000
48% / 52%
Profitable / unprofitable 2011-13
2011: 90% / 10%
2012: 88% / 12%
2013: 86% /14%
Annual Revenues
€ 500,000,
30%
€ 100,000 500,000, 39%
Employment
€ 100,000,
29%
20, 17%
5, 39%
10 - 20, 16%
5 - 10, 29%
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Gender differences
Work force
Ownership structure
Men
Women
11.2
Male majority owned
Female majority owned
80%
78%
64%
7.8
28%
2.0
13%
0.6
Employees
(on average)
Owners/Managers
(on average)
Women make up 36% of employees and 27% of
managers.
Total
11%
Enterprises
Entrepreneurs
Men own more than half of the company in
78% of firms
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Sales by Market
Average for All Surveyed Companies
Former
Yugoslavia
countries
(excluding
Slovenia), 5%
Other
countries (the
EU, Russia,
etc), 3%
Other towns /
regions, 30%
Hometown,
62%
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Business Associations
38%
Membership 2014
12%
11%
Total
Manufacturing
18%
7%
Trade
Services
Small
Negative
Evaluation 2014
Advocating to the Government for the regulatory
reforms
Organization of business fairs and support in
placement of products
Training, education and information dissemination
17%
11%
Medim
Neutral
26%
21%
25%
Large
Positive
50%
42%
35%
17%
33%
37%
Membership by year
2011
2012
2013
2014
36%
18%
13%
12%
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Expectations for the near future
Do you expect increase, decrease or no change in that area/aspect?
Specific expectations
Decrease
No change
2011
Introduction of new
products/services
6%
2012
2012
16%
2014
15%
51%
43%
36%
37%
43%
58%
31%
15%
2013
66%
12%
2014
2014
19%
67%
10%
Decrease
34%
45%
11%
Number
of employees
2012
Number
of
31%
35%
23%
2013
Total revenue
35%
56%
14%
2011
39%
58%
7%
2011
employees
52%
52%
5%
2014
Net profit
42%
9%
2013
Increase
20%
61%
No change
14%
26%
Increase
38%
Refusal
44%
4%
9
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Business Survey 2014
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What changed in the last year?
Some Improvement
Significant Improvement
Information about reforms
Business participation in reforms
Senior management time dealing with red tape
Procedures for payment of wage taxes and
contributions
Type of collateral required by banks
Time and money spent on regulatory issues
Para-fiscal charges
Wage taxes and contributions
Administrative procedures
Court procedures
Inspection surveillance
Construction permits (time)
Labor law
Customs and trade procedures
Customs duties
Excise taxes
Service in financial institutions
No Improvement
Worse
Access to finance
Construction permits (cost)
Fairness in public procurement
VAT rate
Exchange rate volatility
Tax administration
Payment transactions
Business licenses
Corruption
Inflation
Shadow Economy
Bank interest rates and fees
Amount of collateral required by banks
Evaluation of New Reforms
Negative (1+2)
Neutral
Positive (4+5)
Not applicable
Increase of VAT rate
Don't know/ Refusal
70%
Increase of penalties for tax violations
25%
32%
40%
Amendments to the Labor law
19%
Amendments of procedures for certification of health cards
18%
Inclusion of tax inspectors
17%
51%
Adoption of stimulating measures for employment
17%
51%
Amendments of procedures for registration and deregistration of employees
52%
8%
Extension of the deadline for for the submission of the VAT returns
8%
Submission of annual financial report to Business Registry
7%
Submission of tax decisions by mail
7%
Consolidated payment of taxes and contributions
7%
23%
44%
14%
Process of registration real estate rights
17%
32%
52%
27%
35%
37%
20%
46%
31%
51%
58%
1% 5%
2% 6%
2%4%
11%
0%3%
41%
38%
7%
2% 6%
10%
54%
4%
0%6%
24%
41%
2%
1%2%
5%
0%4%
0%4%
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What changed from 2011 to 2014?
Significant Improvement
Inspection surveillance
Corruption
Transparency & predictability
Quality of public dialogue
Public procurement
Wage taxes and contributions
Management time dealing with regulations
Duration of loan approval process
Worse
Court procedures
Availability of finance
Type of finance used
VAT
Excise taxes
Quality of service in banks
Reporting requirements by banks
Some Improvement
Para-fiscal charges
Business licenses
Enforcement of judgments
Type of collateral required for loans
Interest rates and loan fees
Duration of loan term
Business association services
No Improvement
Inflation
Exchange rate volatility
Customs duties
Tax administration
Administrative procedures
Payment transactions
Construction permits
Labor law
Customs procedures
Amount of collateral required for loans
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
2011
56%
2012
47%
50%
4%
3%
The same amount of money
2013
Less money
More time
2014
33%
63%
28%
2011
4%
66%
47%
2012
Time
40%
5%
49%
37%
56%
3%
7%
The same amount of time
2013
Less time
2014
31%
22%
66%
69%
3%
9%
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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
2014
Up to 10% of work time
17%
12%
23%
29%
From 10 to 20% of work
time
29%
26%
32%
28%
From 20 to 50% of work
time
42%
44%
33%
35%
More than 50% of work
time
12%
18%
12%
9%
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Business Survey 2014
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Corruption in public administration
To what extent does corruption in public administration affect your business?
Effects of
corruption on
business
It affects a lot
2011
41%
2012
38%
33%
20%
41%
26%
Sometimes it affects
Does not affect at all
2013
16%
2014
17%
38%
46%
42%
42%
Have you experienced blackmailing by a public servant in an administrative procedure?
Yes, we had to pay
Blackmail by a
public servant
Yes, but we didn't pay
No, I have no such
experience
2011 4%
8%
88%
2012 2% 6%
92%
2013 1% 5%
94%
2014 1%
4%
95%
Have you ever used some private connections in dealing with public administration issues?
Reported use of
private
connections
Regularly
2011
Rarely
2012
10%
No, never
2013
8%
21%
2014 5%
33%
46%
40%
20%
27%
51%
72%
68%
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Public procurement
Base: Those who have experience with public tenders: (2011=400, 2012=400, 2013=293)
Connections with political
parties
3.7
Total
4.1
3.1
3.4
Private connections
How often the
following
circumstances
contribute to winning
on public tenders?
3.9
3.6
Total
3.1
3.2
2011
Bribing members of the
tender panel
Total
3.2
3.1
2012
2.6
2013
3
The best financial offer
The best technical capacity
and experience
Total
Total
2014
3.1
3.3
3.8
3.7
2.7
2.8
3.1
2.9
Marks from 1 to
5, 1 meaning
never and 5
meaning often
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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
Pay only partial contributions
Pay no contributions at all
74%
15%
14%
12%
2013
2014
12%
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Business Survey 2014
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Negative Impacts on Businesses
Please assess the impact of the following elements on your business
(percentage of negative ratings)
Wage taxes and contributions
69
61%
61%
66%
67
VAT
49%
Tax administration
81%
77%
72%
63%
65%
62
Other obligatory (quasi-fiscal) charges
70
77%
75%
74%
62%
Administrative procedures
61
Inspection surveillance
43%
43%
25%
28
31%
Payment transactions including time and money
43%
44%
44
34%
39%
Labor law procedures and requirements
45%
41
37%
42%
33%
34
38%
44%
48%
43
43%
49%
52%
50
Obtaining of the business licenses and related requirements
Obtaining of construction permits and related requirements
Court procedures and requirements
28%
Customs and external trade procedures
70%
66%
2011
2012
2013
2014
33%
40%
35
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Inspections
What was the most frequent inspection in 2013 in your company?
Base: Those who were
visited by inspections
(754)
Tax inspection
26.0%
Market inspection
33.0%
Labour inspection
28.0%
Sanitary inspection
8.0%
Traffic inspection
Tourist inspection
3.0%
0.0%
Environmental inspection
3.0%
Communal inspection
2.0%
Veterinary inspection
Base: Those who were visited by
inspections
(2011=738, 2012=755, 2013=816,
2014=754)
2.0%
Basic information on
inspections:
2011
Average amount of fines imposed
2012
2128 € 1655 €
2013
2014
868 €
2022€
Average amount of time (in hours) spent by
management
70
34
17
12
Average number of visits in the year before
5.5
6.0
3.1
2.2
Average number of visits in the current year
4.8
3.8
2.1
1.6
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Construction permits
Do you agree with the following statements?
I don't agree
Costs related with
construction permits are
moderate
I agree
2011
65%
2012
66%
3%
13%
10%
2013
9%
28%
57%
33%
89%
25%
2%
66%
9%
70%
2012
64%
2013
64%
2014
3%
15%
59%
2011
Number ofpermits
employees
Construction
can
be obtained in a
reasonable period of time
16%
85%
2012
2014
27%
81%
2014
Simplification of
construction permitting
would enable me to
expand my business
32%
7%
2013
2011
Don't know
59%
6%
24%
9%
27%
35%
1%
41%
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The enforcement system
How would you rate the efficiency of the system for enforcement of judgments?
Comparison across
Total
waves:
Base: Private business entities with 3 or more employees:
2011 (N=913), 2012 (N=1020), 2013(N=1029) and 2014 (1009)
Very poor/Poor
Good
2011
86%
2012
2013
2014
*to
Very good/Excellent
13% 2%
80%
61%
66%
16%
29%
27%
4%
9%
7%
achieve reliable comparability, only clearly negative and clearly positive marks were included,
due to unequal number of missing values
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Hiring Employees
Base: Private business entities with 3 or more employees:
Please give your reasons that caused you
to limit hiring or retaining employees in
the past 12 months.
2014 (N=1009)
There was no need for new workers due to market…
64%
We've hired new people / does not apply to us
20%
Amount of taxes and social contributions
12%
Wages are too high given productivity levels
Lack of qualified employees
Labor law provisions limited fixed term contracts
Paperwork involved in hiring and/or retaining…
6%
3%
2%
2%
Labor law provisions on severance pay
2%
Labor Law restrictions on firing
1%
Political risks
1%
Other, what?
0%
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Business Survey 2014
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The Most Negative External Factors
Other obligatory (quasi-fiscal) charges (communal tax etc.)
69
3
Wage taxes and contributions
69
4
VAT
65
4
Positive
Negative
Grey economy
62
2
Tax administration
61
4
Administrative procedures
60
5
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Business Survey 2014
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Economic factors related to competitiveness
Please evaluate how the following factors affect the competitiveness of your business
Negative
Neutral
Inflation
88%
Wage taxes
28%
59%
Illiquidity constraints
3%
32%
51%
42%
1%
38%
66%
40%
1%
16% 1%
70%
Poor access finance
3%
20%
83%
Interest rate volatility
Excise taxes
24%
78%
Exchange rate volatility
Customs duties
12%
74%
VAT rates
Asset price volatility
Positive
2%
47%
2%
56%
56%
4%
29
2%
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Business Survey 2014
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Funding sources
5.1 %
9.7 %
Own Funds
Banks
Other
85.2 %
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Reasons for Not Borrowing
Base: Private business entities with 3 or more employees:
If you did not borrow money in the last 12
months, why not?
2014 (N=1009)
Used owner’s equity instead of a loan
14%
Have a borrowing need and bank products
were not suitable for my needs or risk profile
6%
Have a borrowing need, but decided not to
borrow because bank requirements take…
6%
Were declined a loan
2%
I did not meet the requirements to obtain a
bank loan
2%
Have no need for credit
Refusal
49%
21%
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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
21%
15%
30%
31%
13%
19%
22%
58%
19%
17%
12%
9%
7%
10%
7%
4%2% 7%
62%
13%
10%
6%
62%
13%
10%
5%2% 7%
79%
7%
8% 3%2% 8%
82%
6%
86%
6%
85%
8%
8%
7%
Type of finance used often and all the time:
2011
19%
Term loans
30%
27%
2012
15%
Overdraft
2013
2014
21%
26%
29%
11%
10%
12%
9%
9%
11%
8%
6%
Guarantees
Revolving credit
Letter of Credit
25%
3%
2%
0%
2%
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Suitability of the available finance
How suitable is the available finance to your needs?
96%
93%
90%
91%
Interest rates and fees
74%
73%
76%
77%
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%
72%
56%
64%
60%
50%
50%
64%
58%
67%
54%
57%
55%
61%
56%
54%
51%
49%
52%
54%
2011
2012
2013
2014
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