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Entrepreneurs in Russia named the main problems for recovery after the "coronary crisis

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Entrepreneurs in Russia named the main problems for recovery after the "coronary crisis

Rising utility, electricity and fuel tariffs as well as purchase prices are among the main barriers to recovery after the pandemic for 38% of small and medium-sized enterprises (SMEs) in Russia, according to the Center for Strategic Research (CSR) report "Costs of power supply to small and medium businesses in Russia: a growing burden", TASS writes.

Between March 2020 and February 2021, over 6,500 companies participated in the CSR's monitoring of economic indicators of the business environment, of which half are in the SME sector. In the last wave of the survey in February of this year, on the basis of which the results are presented, 501 companies took part from all sectors of the economy (62% of them belong to the SME sector).

According to the study, the main barriers to the recovery and development of companies include: the inability to operate in the country due to covidual restrictions (this was the response of 48% of respondents from all categories of businesses and 43% of surveyed SMEs), falling demand and customer churn (33% of respondents from all categories of businesses and 37% of surveyed SMEs), higher procurement prices (32% of respondents from all categories of businesses and 37% of surveyed SMEs).

The difficulty for businesses to recover from the "coronary crisis" is also the increase in prices and tariffs for housing and utilities, electricity, fuel and other services. At the same time, the SME segment is more sensitive to this problem - 38% of the representatives note that the growth of prices and tariffs is one of the main barriers to doing business in Russia. For all the categories of enterprises this barrier is mentioned by 34% of the respondents: agriculture (58%), light and food industry (54%), construction (44%) and heavy industry (38%) more often mention this problem, according to the report.

The top 3 positive incentives for business recovery and development in 2021 are topped by lower tariffs. Companies in agriculture, light, food and heavy industry, and construction largely responded this way. This also includes the removal of physical restrictions in Russia and new partnerships.

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    Author: Karina Kamalova

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