Difference between revisions of "Poor Business Climate"
(New page: ===Poor business climate=== ===Describe=== Small business, the economic engine of most developed economies, employed only 20 percent of Russia’s economically active population, versus m...) |
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Poor business climate | |||
===Describe=== | ===Describe=== | ||
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===Enablers=== | ===Enablers=== | ||
Strong GDP growth over the last ten years | Strong GDP growth over the last ten years | ||
Continuous expansion of domestic demand and income | Continuous expansion of domestic demand and income | ||
Russia’s trade with the West has grown significantly | Russia’s trade with the West has grown significantly | ||
Positive taxation reform, such as tax break and corporate tax reduction | |||
Positive taxation reform, such as tax break and corporate tax reduction | |||
===Inhibitors=== | ===Inhibitors=== | ||
Poor access to external financing | Poor access to external financing | ||
High bureaucracy and corruption causes the higher entrance barrier for small business | High bureaucracy and corruption causes the higher entrance barrier for small business | ||
===Paradigms=== | ===Paradigms=== | ||
1. Potential foreign directly investment inflows will drop | 1. Potential foreign directly investment inflows will drop | ||
2. Existing foreign investors are still interested in investing conservatively | 2. Existing foreign investors are still interested in investing conservatively | ||
3. Privatization and government-own business still exist in Russia | 3. Privatization and government-own business still exist in Russia | ||
4. Joint ventures will expand | 4. Joint ventures will expand | ||
===Time=== | ===Time=== | ||
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===Reference=== | ===Reference=== | ||
1. http://web.ebscohost.com/ehost/pdf?vid=11&hid=4&sid=079d58a2-e195-4b61-9fb2-113062eb674b%40sessionmgr10 | 1. http://web.ebscohost.com/ehost/pdf?vid=11&hid=4&sid=079d58a2-e195-4b61-9fb2-113062eb674b%40sessionmgr10 | ||
2. http://web.ebscohost.com/ehost/pdf?vid=1&hid=4&sid=7d6e59d7-eb32-4311-bfc9-9ede4f1e2de9%40sessionmgr10 | 2. http://web.ebscohost.com/ehost/pdf?vid=1&hid=4&sid=7d6e59d7-eb32-4311-bfc9-9ede4f1e2de9%40sessionmgr10 | ||
3. http://web.ebscohost.com/ehost/pdf?vid=2&hid=4&sid=ee769960-4bcd-4de8-b2ca-086fbe0b70b9%40sessionmgr4 | 3. http://web.ebscohost.com/ehost/pdf?vid=2&hid=4&sid=ee769960-4bcd-4de8-b2ca-086fbe0b70b9%40sessionmgr4 | ||
4. http://web.ebscohost.com/ehost/pdf?vid=1&hid=108&sid=2258e241-c4c5-463d-b78d-4f043ecf1561%40sessionmgr104 | 4. http://web.ebscohost.com/ehost/pdf?vid=1&hid=108&sid=2258e241-c4c5-463d-b78d-4f043ecf1561%40sessionmgr104 | ||
Latest revision as of 15:54, 13 September 2009
Poor business climate
Describe
Small business, the economic engine of most developed economies, employed only 20 percent of Russia’s economically active population, versus more than 50 percent in Europe and 80 percent in Japan. How to attract foreign investment to maintain the economic growth is important issue for Russia.
Enablers
Strong GDP growth over the last ten years
Continuous expansion of domestic demand and income
Russia’s trade with the West has grown significantly
Positive taxation reform, such as tax break and corporate tax reduction
Inhibitors
Poor access to external financing
High bureaucracy and corruption causes the higher entrance barrier for small business
Paradigms
1. Potential foreign directly investment inflows will drop
2. Existing foreign investors are still interested in investing conservatively
3. Privatization and government-own business still exist in Russia
4. Joint ventures will expand
Time
1991 Price controls were abolished, privatization was started.