The main problems of Russian entrepreneurs are named

Almost 90 percent of entrepreneurs in Russia have faced rising prices for goods and raw materials

In 2021, almost 90 percent of small business owners and private entrepreneurs in Russia are faced with rising prices for goods, services and raw materials. They named their main problems in a survey of Raiffeisenbank, TASS reports.

In a survey conducted in November 2021, more than 500 entrepreneurs from Moscow, St. Petersburg, Kazan, Novosibirsk, Rostov-on-Don took part. Nizhny Novgorod, Sochi and other cities. 28 percent of respondents noted that the increase in prices changed the salary expectations of employees – it became more difficult to hire people to work. As one of the problems, entrepreneurs indicated an increase in transportation and delivery costs – 38 percent of respondents said this. For 20 percent, inflation, declining income levels and lockdowns seemed critical. Entrepreneurs also considered the most difficult task to compile reports on compliance with antiquated restrictions (29 percent of respondents).

Taxes and employee salary increases were named as minor factors affecting work, 34 percent of respondents. 40 percent of those surveyed said they were least affected by closed borders, leverage, and competition from digital services. 23 percent of respondents referred to such factors as state checks.

Earlier, the international consulting company PwC in a survey found that Russian entrepreneurs are dissatisfied with the conditions for doing business in the country. The biggest complaints from company leaders were caused by high taxes, administrative barriers, bureaucracy, increased control over business operations by the state and the lack of state support.

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