News>Turiba Business index: 56.7% of entrepreneurs think that the government is hindering entrepreneurship

Turiba Business index: 56.7% of entrepreneurs think that the government is hindering entrepreneurship (0)

Assessing the impact of government actions on entrepreneurship, 56.6% of entrepreneurs indicated that such actions hinder entrepreneurship whereas 7.3% state that they promote entrepreneurship as shown by Turiba Business index. The study which will be presented today evaluates the attitude of entrepreneurs and enterprise managers towards various factors influencing the business environment. Analysing all the factors, it is estimated that the overall business index for the current year is negative (– 17.4).

Evaluating the administrative burden, 74.7% entrepreneurs indicated that it is too high whereas 22.4% considered it to be acceptable and 3% found it difficult to answer the question. The stability, constancy and predictability of business related legislation was evaluated very negatively - 73.6% indicated it to be bad, 19.3% - good and 7.1% - couldn’t answer.

Entrepreneurs highly positively rated factors such as communications and the Internet– 43.4% very well, 53.3% well and only 2.9% as bad and therefore the index is the highest among all other factors influencing the business environment (68.3). The scientific technical resources necessary for enterprises were also positively rated (16.4).

In addition to questions included in the index, entrepreneurs were requested to offer their assessment of the current business environment in Latvia. 39.2% entrepreneurs rated is as more or less bad (48.3% - in 2018), 8.7% - very bad (2.8% - in 2018), and 43.5% - more or less good (33.6% - in 2018). The business environment index this year is -6, which is a lot better than the index for the previous year -19.4.

“In comparison to the previous year the entrepreneurs’ rating of the business environment in Latvia has significantly improved; however I would not want to be too optimistic as the ratings of a number of other indicators such as government actions, administrative burden and stability of business related legislation indicate a lot to be desired in terms of government support for businesses. On the contrary – such actions despite good goal management, significantly hinder the normal development of the business environment. Just the Internet alone is not enough to expect a positive index in the coming years,” stresses Zane Driņķe, Dean of the Faculty of Business Administration of Turiba University.

The study was carried out from the beginning of December 2018 till the end of January 2019 and 750 entrepreneurs and enterprise managers participated therein. Turiba Business index was also presented in 2018. The index was designed to promote closer links between entrepreneurship and business education, identify significant problems and advantages of the business environment and enhance the interest of emerging entrepreneurs. The maximum index rating is +100, and the minimum -100.