“EASY” BUSINESS OR WHAT ARE THE PROBLEMS FACED BY BUSINESSES IN THE REGION?

Sergey Ushkin

Results of the study of subjective assessments of the business climate in the region by business experts and businesspeople are discussed. Business climate and its individual components, administrative barriers, the effectiveness of programs to support small and medium-sized businesses, interaction with various regulatory, supervisory and other public authorities are analyzed. Measures to stimulate regional entrepreneurship are identified. On the basis of available empirical data author formulated paradoxes of business. First, the negative assessment of the business climate does not depend on the actions of the regional and municipal authorities. Second, business reacts negativly to programs to support small and medium-sized businesses, but would like to fully protect itself from interaction with regional and municipal authorities. Thirdly, employers indicate the presence of administrative barriers in the region, but only every fifth respondent personally experienced them. Fourth, despite the quietly declared in our country doctrine of social responsibility, the expert community supports reduction of tax rates and/or introduction of preferential tax system.