Almost every second entrepreneur expects business climate to worsen in Ukraine – poll

About 44% of entrepreneurs expect that the business climate in Ukraine will worsen in 2021, while 11% hope for certain improvements.

Read alsoPM Shmyhal boasts of successful low-interest loans program for businessesThese are findings of a survey conducted by the Ukrainian Chamber of Commerce and Industry (UCCI) among its more than 70 member companies on February 8-22, 2021, the agency's press service said on its website on March 11.

"Some 44% of respondents expect that [the country's] business climate will worsen in 2021, another 38.9% assess it neutrally, while a mere 4.2% expect its significant deterioration. Meanwhile, 11% hope for a certain improvement. In general, the business climate in 2021 is assessed as neutrally pessimistic," the report said.

At the same time, 25% of respondents hope for a revival of business activity in 2021, about 35% are neutral, another 37.5% expect a certain decline, while 2.8% predict a significant slump.

In total, respondents' forecasts for business activities in 2021 are multidirectional and mostly cautiously neutral, according to the UCCI.

The authorities' failure to protect property rights is most often mentioned by entrepreneurs as a problem that hinders the development of small- and medium-sized businesses (SMEs) in Ukraine. They also point to a high level of corruption in government agencies, types and rates of taxes for SMEs, high payroll contributions by SMEs, and insufficient access to loans, etc.

Background

• On February 3, 2020, the Ukrainian government announced the launch of the Affordable Loans: 5%-7%-9% program.
• Later, the Cabinet of Ministers simplified access of businesses to loans under the said program, having eased mandatory profitability requirements for existing businesses and having removed restrictions on areas where the funds may be used, as well as on the loan ceiling.
• Medium-sized businesses may also use advantages of the Affordable Loans: 5%-7%-9% program from 2021.