Business Survey 2013

1. Business Survey 2013 November 13, 2013 Belgrade

2. Business Survey 2013 Methodology

3. Methodology Realization: research was conducted in the period between 9th of September and 4th of October 2013 Target population: Privatebusiness entities in Serbia with 3 or more employees Sample frame: List of all business entities (enterprises and establishments) registered at the Serbian Business Register (2012) Sample size: 1029 business entities Stratification:according to region, economic activity of business entities and size Method of data collection: Face-to-face interviews in company offices Average duration of the interview: 50 minutes

4. Business Survey 2013 Part 1:Description of Surveyed Businesses

5. Characteristics of Surveyed Companies % of participants in survey

6. Sales by Market Average for All Surveyed Companies

7. Expectations for the near future Do you expect increase, decrease or no change in that area/aspect? General expectations Specific expectations

8. Gender differences Work force Ownership structure Employees (on average) Owners/Managers (on average) Total Enterprises Entrepreneurs 69% of the businesses have only up to 5 female employees 16% of the companies have only female managers, while 61% have only male managers Significantly more “female businesses” are present among entrepreneurs comparing to enterprises

9. Membership 2013 Business Associations Evaluation 2013 Membership by year

10. Business Survey 2013 Part 2:Policy Legal & Regulatory Issues

11. Summary Significant Improvement Corruption Public procurement Business licensing Inspections Senior management time dealing with red tape Transparency and predictability for doing business Public private dialogue Some Improvement Time and money spent on regulatory issues Wage taxes and contributions Enforcement of judgments Exchange rate volatility Illiquidity constraints Duration of loan approval process No Improvement Construction permits Administrative procedures Para-fiscal charges Tax administration Inflation Interest rate volatility Access to finance Collateral requirement Worse Court procedures Labor Law procedures Customs and external trade procedures VAT rates Excise taxes Customs duties Quality and service of financial institutions

12. Negative Impacts on Businesses Please assess the impact of the following elements on your business (percentage of negative ratings)

13. Time and money spent on regulatory issues During the last 12 months has your company spent more or less money and time dealing with regulatory issues compared to the previous year? Money Time

14. Senior management time spent in dealing with regulatory requirements What is the amount of senior management time spent in dealing with regulatory requirements?

15. Corruption in public administration Effects of corruption on business To what extent does corruption in public administration affect your business? Blackmail by a public servant Have you experienced blackmailing by a public servant in an administrative procedure? Reported use of private connections Have you ever used some private connections in dealing with public administration issues?

16. Public procurement Base: Those who have experience with public tenders: (2011=400, 2012=400, 2013=293) How often the following circumstances contribute to winning on public tenders? Marks from 1 to 5, 1 meaning never and 5 meaning often

17. Construction permits Do you agree with the following statements?

18. Inspections What was the most frequent inspection in 2012 in your company? Base: Those who were visited by inspections (816) Basic information on inspections: Base: Those who were visited by inspections (2011=738, 2012=755, 2013=816)

19. Para-fiscal charges How burdensome are the following taxes and charges for business?

20. The enforcement system How would you rate the efficiency of the system for enforcement of judgments? *to achieve reliable comparability, only clearly negative and clearly positive marks were included, due to unequal number of missing values

21. Temporarily employed Employment Contracts Out of the total number of employees in your business, how many are working on a temporary contract? Permanently employed Out of total number of employees in your business, how many are permanently employed?

22. Business Survey 2013 Part 3:Macroeconomic & Finance Issues

23. Economic factors related to competitiveness Please evaluate how the following factors affect the competitiveness of your business

24. Grey economy estimates According to your estimate, out of the total number of employees working in enterprises that operate in the same industry as your company, for what percentage of employees do the enterprises pay (1) full contributions on salaries, (2) only partial contributions on salaries, and (3) no contributions on salaries at all?

25. Budget cuts aimed at reducing taxes Which budget cuts for government services would you support in order to lower taxes? Supported budget cuts:

26. Funding sources What percentage of your business’ financing comes from… 81% of total funding comes from business owners themselves

27. Types of finance used Please indicate the type of finance you have used and how often Type of finance used often and all the time:

28. Suitability of the available finance How suitable is the available finance to your needs?

29. Business Survey 2013 Part 4:Summary of Progress

30. Impact of reform efforts To what extent do you agree or disagree with the following statements?

31. Impact of reform efforts To what extent do you agree or disagree with the following statements?