06.03.2019

Assessment of relations between the state and business. March 2019

  • According to the results of a survey conducted by Rating Group, almost 40% of Ukrainians would like to have their own business, while another 10% already own one. At the same time, half of respondents do not express such aspirations. Over the past six months, the share of those who do not want to start a business has slightly increased (in June 2018 it was 41%). A higher level of desire to open one’s own business is observed among younger and more affluent respondents. Within the group of well-off respondents, one quarter stated that they already run their own business.
  • When assessing the role of the state in economic development, the majority of respondents (64%) primarily see it as ensuring income equality and social justice rather than establishing freedom of development and fair rules of competition. The latter approach is supported by 27%. Support for social equality has grown significantly over time, increasing from 48% in June of the previous year to 64% in February of the current year. State support for competition is more often favored by younger respondents, residents of the central and eastern regions, wealthier individuals, as well as those who want to have or already have their own business. At the same time, even among these groups, between 40% and 60% support the idea of social equality.
  • Two thirds of respondents tend to believe that the state hinders the activity of small and medium-sized businesses in Ukraine. Only 7% think that public authorities contribute to the development of entrepreneurship, while 14% believe that the authorities currently do not interfere in business activities. Residents of the southern macro-region and respondents with lower incomes somewhat more often agree with the view that the state obstructs business activity in Ukraine.
  • Fifty-seven percent of respondents believe that the simplified tax system should be preserved, as it stimulates business development. Only 19% support abolishing this system, arguing that it allows tax evasion. One quarter of respondents were unable to form an opinion on this issue. Support for the simplified taxation system is higher among entrepreneurs, residents of central regions, and wealthier respondents.
  • An absolute majority of respondents (77%) support lowering bank lending rates for small businesses. Only 9% do not support this idea, while 14% were unable to answer. Those who already have or want to start their own business, middle-aged respondents, individuals with middle and low incomes, and residents of eastern regions are somewhat more inclined to support this initiative.
  • Among different categories of business representatives, respondents express the highest level of trust in small (63%) and medium-sized (60%) entrepreneurs. Twenty-seven percent stated that they trust owners of large businesses, compared to 20% in September 2018. At the same time, trust in oligarchs remains very low at 8%. Trust in businesspeople, especially medium and large-scale ones, is noticeably higher among respondents with higher income levels. In contrast, trust in small entrepreneurs is equally high across all age and income groups.

Methodology

  • Audience: population of Ukraine aged 18 and older. The sample is representative by age, gender, region, and type of settlement.
  • Sample size: 2500 respondents.
  • Personal formalized interview (face-to-face).
  • The margin of error does not exceed 2%.
  • Fieldwork dates: February 19-28, 2019