2. 1
#1000preduzeca
Methodology

3. METHODOLOGY Fieldwork: Between 6 September and 5 October 2015
Target population:
Private business entities in Serbia with 3 or more employees
Sample frame:
List of all business entities (enterprises and establishments) registered with the Serbian Business Registry (2015)
Sample size:
1032 business entities
Sample type:
Representative, one-stage stratified sample
Stratification:
By region, economic activity, and size of business entity
Data collection method:
Face-to-face interviews in company offices
Average duration of interview:
50 minutes

4. BUSINESS DEMOGRAPHICS – WEIGHTED DATA
Size
Region
Industry
Form of incorporation

5. Business demographics2
Business demographics
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6. Item Finding Participating / Invited 1,032 / 4,000
Founded before / after 2000
42% / 58%
Profitable / Loss-making
2013: 90% / 8%
2014: 90% / 9%
2015: 92% / 7%
Number of employees

7. Employees
Owners / Managers
42%
58%
33%
67%

8. BUSINESSES SELL 2/3 OF PRODUCTS/SERVICES IN HOMETOWN
Collaboration with public sector
Base: Privately-held business entities with 3 or more employees
2016 (N=1032)

9. Transparency, corruption, regulatory framework3
Transparency, corruption, regulatory framework
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10. Partially agree + Agree + Completely agree (3+4+5)
TRANSPARENCY
To what extent do you agree or disagree with the following statements:
2016:
63%
Partially agree + Agree + Completely agree (3+4+5)
2015:
62%
2014:
55%
2013:
45%
2012:
27%
2011:
24%
Transparency and predictability of doing business in Serbia have increased over the past 12 months.
Base: Privately-held business entities with 3 or more employees
2011 (N=913), 2012 (N=1020), 2013 (N=1029), 2014 (N=1009), 2015 (N=1008) and 2016 (N=1032)

11. Partially agree + Agree + Completely agree (3+4+5)
PUBLIC DIALOGUE
To what extent do you agree or disagree with the following statements:
Partially agree + Agree + Completely agree (3+4+5)
2016:
60%
2015:
59%
2014:
58%
2013:
44%
2012:
32%
2011:
26%
The quality of public dialogue on macroeconomic and fiscal issues has improved over the past 12 months.
Base: Privately-held business entities with 3 or more employees
2011 (N=913), 2012 (N=1020), 2013 (N=1029), 2014 (N=1009), 2015 (N=1008) and 2016 (N=1032)

12. REGULATORY FRAMEWORK
To what extent do you agree or disagree with the following statements:
The burden of laws and regulations decreased in the last 12 months
Business ability to participate in reforming laws related to the business environment has improved in the last 12 months
Base: Privately-held business entities with 3 or more employees
2011 (N=913), 2012 (N=1020), 2013 (N=1029), 2014 (N=1009), 2015 (N=1008) and 2016 (N=1032)

13. Lower awareness of regulatory reforms
To what extent do you agree or disagree with the following statements:
Total
Businesses
Sole
proprietors
Base: Privately-held business entities with 3 or more employees
2011 (N=913), 2012 (N=1020), 2013 (N=1029), 2014 (N=1009), 2015 (N=1008) and 2016 (N=1032)

14. Stagnation in recent years
During the last 12 months, has your company spent more or less TIME/MONEY dealing with regulatory issues when compared with the year before?
2011
2012
2013
2014
2015
2016
Base: Privately-held business entities with 3 or more employees
2011 (N=913), 2012 (N=1020), 2013 (N=1029), 2014 (N=1009), 2015 (N=1008) and 2016 (N=1032)

15. Corruption on the decline
To what extent does corruption in public administration affect your business?
Blackmail, use of personal connections, and giving of gifts and money have almost disappeared between 2011 and today
Impact of corruption on doing business
Base: Privately-held business entities with 3 or more employees
2011 (N=913), 2012 (N=1020), 2013 (N=1029), 2014 (N=1009), 2015 (N=1008) and 2016 (N=1032)

16. 4
#1000preduzeca
Regulatory framework

17. ADVERSE IMPACTS ON BUSINESSES (1)
To what extent do the following issues adversely affect your business?
Base: Privately-held business entities with 3 or more employees
2011 (N=913), 2012 (N=1020), 2013 (N=1029), 2014 (N=1009), 2015 (N=1008) and 2016 (N=1032)

18. ADVERSE IMPACTS ON BUSINESSES (2)
To what extent do the following issues adversely affect your business?
Base: Privately-held business entities with 3 or more employees
2011 (N=913), 2012 (N=1020), 2013 (N=1029), 2014 (N=1009), 2015 (N=1008) and 2016 (N=1032)

19. Construction permitting takes half as long
How long did it take to obtain all of the necessary construction permits?
AVERAGE TIME NEEDED TO OBTAIN PERMT
2013
9.3 months
2014
8.2 months
2015
7.7 months
2016
4 months
Baza: Businesses that constructed buildings over past two years
2013 (N=96), 2014 (N=46), 2015 (N=64) and 2016 (N=69)

20. Moderate costs, streamlined procedure
Do you agree with the following statements?
Costs associated with construction permits are moderate
(*Further) Simplification of construction permitting would enable me to expand my business
Baza: Businesses that constructed buildings over past two years
2013 (N=96), 2014 (N=46), 2015 (N=64) and 2016 (N=69)

21. Major improvement to inspections
Based on your experience with various inspectors, do you agree or disagree with the following statements?
Base: Privately-held business entities with 3 or more employees
2013 (N=1029), 2014 (N=1009), 2015 (N=1008) and 2016 (N=1032)

22. CONTINUED IMPROVEMENT
2011
2012
2013
2014
2015
2016
Average amount of fines imposed (EUR)
2,128
1,655
868
2,022
1,148
983
Average amount of time (in hours) spent by management 70 34 17 12 15 13
Average number of visits in the year before
5.5
4.8
3.1
2.2
2.8
Average number of visits in the current year
6.0
3.8
2.1
1.6
1.7
From 12 hours per visit on average in 2011 to 5 hours in 2015 and 4 hours in 2016
Base: Privately-held business entities with 3 or more employees
2011 (N=913), 2012 (N=1020), 2013 (N=1029), 2014 (N=1009), 2015 (N=1008) and 2016 (N=1032)

23. Enforcement of court decisions
How would you rate the efficiency of the enforcement system?
By year
2016
* To ensure comparability, only negative and positive extremes are shown due to unequal numbers of missing values
Base: Privately-held business entities with 3 or more employees
2011 (N=913), 2012 (N=1020), 2013 (N=1029), 2014 (N=1009), 2015 (N=1008) and 2016 (N=1032)

24. Positive perceptions of enforcement officers
Do you believe that the introduction of professional enforcement officers has improved the enforcement and collection system?
POSITIVE AND NEGATIVE IMPACT OF ENFORCEMENT OFFICERS
N=1,032
N=55
N=32
Base: Privately-held business entities with 3 or more employees
2016 (N=1032)

25. Public procurement: Average rating by year
How often do the following factors affect contract awards in public procurement?
From 1 to 5, with 1 being “Never”, and 5 “Very often”
Base: Business entities with experience in public procurement
2011, 2012 (N varies as firms were not given option to skip), 2013 (N=293), 2014 (N=284), 2015 (N=270) and 2016 (N=288)

26. 5
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Macroeconomic policy

27. Shadow economy remains a threat
According to your estimate, of the total number of employees working in enterprises that operate in the same industry as your company, for what percentage of employees do enterprises pay full contributions, only partial contributions, or no contributions on salaries at all?
No. of respondents who see shadow economy as adverse factor
62%
2014
59%
2015
57%
2016
Base: Privately-held business entities with 3 or more employees
2013 (N=1029), 2014 (N=1009), 2015 (N=1008) and 2016 (N=1032)

28. Improved perceptions of macroeconomic indicators
How do the following factors affect the competitiveness of your business?
Inflation
Interest rate volatility
Exchange rate volatility
VAT rates
Base: Privately-held business entities with 3 or more employees
2014 (N=1009), 2015 (N=1008) and 2016 (N=1032)

29. Do businesses support lower subsidies?
Which budget cuts for government services would you support in order to lower taxes?
Base: Privately-held business entities with 3 or more employees
2011 (N=913), 2012 (N=1020), 2013 (N=1029), 2014 (N=1009), 2015 (N=1008) and 2016 (N=1032)

30. 6
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Access to finance

31. Stagnating finance = stagnating growth?
Where do you most frequently borrow money from to finance your business?
Base: Privately-held business entities with 3 or more employees
2011 (N=913), 2012 (N=1020), 2013 (N=1029), 2014 (N=1009), 2015 (N=1008) and 2016 (N=1032)

32. Most finance comes from businesses’ own coffers
What percentage of financing for your business comes from the following sources?
Irrespective of business size or industry, or whether business is incorporated as an enterprise or sole proprietor
Base: Privately-held business entities with 3 or more employees
2012 (N=1020), 2013 (N=1029), 2014 (N=1009), 2015 (N=1008) and 2016 (N=1032)

33. Expensive finance remains in demand
Please indicate the type of finance you have used and how often.
Base: Businesses that borrowed
2011, 2012 (N varies as firms were not given option to skip), 2013 (N=468), 2014 (N=366), 2015 (N=387), 2016 (N=328)

34. Collateral: Two steps forward, one step back (1)
Did the financial institution you borrowed from require collateral (mortgage/pledge), and, if so, what type of asset was required?
2012
2013
2014
2015
2016
Base: Privately-held business entities with 3 or more employees
2012 (N varies as firms were not given option to skip), 2013 (N= 387), 2014 (N=304), 2015 (N=311) and 2016 (N=288)

35. 7
#1000preduzeca
Impact of reforms

36. Government measures seen as most positive
Please say how these recent Government measures have affected the business environment
Central Registry of Mandatory Social Insurance
62%
56%
Simplified KEPU ledger procedures
48%
49%
Abolition of employment booklets
E-permitting software
POSITIVE (4+5)
Base: Privately-held business entities with 3 or more employees
2016 (N=328)

37. Most hoped-for regulatory reforms
What change of regulations do you hope most for at this moment?
Base: Privately-held business entities with 3 or more employees
2014 (N=1009), 2015 (N=1008) and 2016 (N=1032)

38. Changes in 2016 No. of employees Net profits
Would you say the following features of your business have increased, decreased or remained the same relative to one year ago?
No. of employees
Net profits
Base: Privately-held business entities with 3 or more employees
2014 (N=1009), 2015 (N=1008) and 2016 (N=1032)

39. 8
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How we see the future

40. FUTURE EXPECTATIONS 2011 2012 2013 2014 2015 2016 INCREASE
And now I will ask you about your expectations in the next 12 months regarding various aspects of business, and I kindly ask you to tell me if you expect increase, decrease or no change in that area/aspect. What are your expectations for the next 12 months regarding…
2011
2012
2013
2014
2015
2016
Base: Privately-held business entities with 3 or more employees
2011 (N=913), 2012 (N=1020), 2013 (N=1029), 2014 (N=1009), 2015 (N=1008) and 2016 (N=1032)

41. Thank you for your attention
#1000preduzeca
Thank you for your attention