The small business spirit index in 2018 was 3.2 points out of the maximum possible five, which corresponds to a neutral level, according to a study conducted by the European Business Association (EBA). According to a report on the EBA’s website, small business representatives are optimistic about the prospects for development this year: out of the 278 interviewed owners and directors of small enterprises in all spheres of activity 76% expect business to improve in the next six months, while 87% forecast profit growth in 2018.
More than half of the companies surveyed plan to increase the number of employees, while 57% to raise wages, 64% to increase the amount of financing their business in 2018, the report says.
At the same time, the materials of the study indicate that 40% of the companies polled were founded in the crisis years of 2015-2017.
“The survey shows the orientation of small businesses to exports. Some 27% of the companies surveyed have already entered foreign markets, and 30.3% plan to do this this year. The companies intend to develop their enterprises and reinvest their earnings in their own business,” the report states.
However, small business development is hampered by difficulties in obtaining loans. According to the survey, 82% of the surveyed heads of companies admitted that they need credit funds, 65% of respondents have difficulties with this, in particular 15.5% of them say that borrowings are “absolutely impossible.” “In general, 68.2% of respondents believe that the economic situation in Ukraine does not contribute to the development of small business, and only 3% of respondents are completely satisfied with the business climate in Ukraine,” the release says.