methodology - usaid cooperation for growth project...reasons for not hiring employees in the past 12...

Methodology

Realization:Research was conducted in the period between 24th of June and 16th of August 2019

Target population: Private business entities in Serbia with 3 or more employees

Sample frame: List of all business entities (enterprises and establishments) registered at the Serbian Business Register (2017)

Sample size: 1014 business entities

Sample type: Representative, one-stage stratified sample

Stratification:According to region, economic activity of business entities, size and type of business entity

Method of data collection: Face-to-face interviews in company offices

Average duration of the interview:

45 minutes

Sample structure – weighted data

75%

22%

3% 1%

39%

25% 22%14%

33% 32% 35%

87%

13%

Mic

ro

Smal

l

Med

ium

Larg

e

Bel

grad

e

Vo

jvo

din

a

Šum

adija

an

d W

est

Serb

ia

Sou

th a

nd

Eas

t Se

rbia

Man

ufa

ctu

rin

g

Serv

ices

Trad

e

Ente

rpri

se

Entr

epre

neu

r

Size Region Economic activity Type

Description of business

In which year was your business established?

The year when business was established

Two thirds of the companies are established after 2000

5%

5%

4%

5%

3%

2%

42%

43%

41%

38%

33%

32%

30%

25%

26%

25%

25%

24%

23%

27%

29%

33%

39%

42%

2013

2014

2015

2016

2017

2019

Before 1990 Don't know 1990-1999 2000-2005 2006 or after

Base: Total target population

What is the total number of employees in your business?

The total number of employees

Over a third of companies (37%) has up to five employees, while only about a fifth (17%) has over 20 employees.

43%

25%

16%

15%

39%

29%

16%

17%

42%

23%

15%

19%

41%

26%

17%

16%

40%

28%

17%

15%

37%

27%

17%

17%

Up to 5 employees

From 6 to 10 employees

From 11 to 20 employees

More than 20 employees

2013 2014

2015 2016

2017 2019


What is the total number of managers/owners in your

business?

The total number of managers/owners

Every second company (47%) has one manager or owner.

59%

23%

8%

10%

53%

27%

8%

12%

5%

53%

21%

9%

13%

5%

54%

23%

9%

10%

8%

52%

23%

7%

11%

2%

47%

28%

9%

11%

None

One manager/owner

Two managers/owners

Three managers/owners

More than three managers/owners

2013 2014

2015 2016

2017 2019


Ownership structure in terms of gender

Could you please tell me the ownership share of women and men in

your company (in percentages)?

Every fifth company (19%) is now run by women, which is an improvement over the previous period.

78%

78%

78%

77%

78%

73%

8%

8%

9%

6%

7%

5%

15%

13%

14%

17%

15%

19%

2013

2014

2015

2016

2017

2019

Men own more than 50%

Men and women have equal share (50%:50%)

Don't know/Refusal/Majority owner of our company is another company

Women own more than 50%


What percentage of your products/services did you sell in the National market (on the territory of Serbia), and what percentage of the products/services did you sell in other countries?Speaking of National market (territory of Serbia), what percentage of your products/services did you sell in the town of yourbusiness headquarters, and what percentage do you sell in other towns/regions?And when it comes to the export to other countries, what percentage of your products/services did you sell in the markets of former Yugoslavia countries (excluding Slovenia and Croatia), and what percentage did you sell in other countries (the EU, Russia, etc.), in 2018?

Market structure


Average percentage of companies’

products/services

What percentage of your products/services did you sell in the National market (on the territory of Serbia), and

what percentage of the products/services did you sell in other countries?

Export, across waves


On average, a quarter of companies (26%) sell their products/services in other countries, while

three quarters (73%) sell only on the national market.

25%

26%

27%

27%

27%

26%

75%

75%

73%

73%

73%

73%

2013

2014

2015

2016

2017

2019

Exporter Don't know/Refusal Non-exporter

Percentage of

companies

Speaking of National market (territory of Serbia), what percentage of your products/services did you sell in the

town of your business headquarters, and what percentage do you sell in other towns/regions?

Sales structure in the national market, across waves


On average, a third of companies (31%) sell their products/services only in the town of business

headquarters, while two thirds (64%) sell them in both – in their town and other towns/regions in

Serbia

Percentage of companies

33%

29%

30%

34%

35%

31%

2%

3%

2%

2%

3%

2%

65%

68%

68%

63%

61%

64%

2013

2014

2015

2016

2017

2019

Sell only in the town of business headquarters Sell only in Other towns/regions

Don't sell on national market Don't know/Refusal

Sell both in their town and other towns/regions

And when it comes to the export to other countries, what percentage of your products/services did you sell in the markets of former Yugoslavia countries (excluding Slovenia and Croatia), and what percentage did you sell in other countries (the EU, Russia, etc.), in 2018?

Export structure, 2019

Base: Those that export their products/ services to other countries (n=257)

Majority of those that export their products/services, export them primarily in the markets of

former Yugoslavia countries (79%), and to a somewhat smaller degree to EU and Russia (64%).

79%

64%

24%

21%

36%

76%

Sell to former Yugoslaviacountries (excludingSlovenia and Croatia)

Sell in EU and Russiamarket

Sell in other countries, restof the world

Yes No Percentage of companies

What percentage of your products/service is sold to public sector: public enterprises, local governments?

Market structure – collaboration with the public sector


2019, Those that collaborate with public sectorCollaboration with the public sector

One quarter of companies collabore with the public sector (26%). For majority of them this is not

major source of their financing.

Collaboration with the public sector Those that collaborate with public sector

32%

26%

24%

24%

21%

26%

2013

2014

2015

2016

2017

2019

57%

25%

18%

Up to 10%

From 11% to30%

More than30%

Perception of changes compared with the previous year

Now I will ask you a few questions about some changes compared to the same period of the previous year. Would you say that that the following aspects of business decreased, increased or there was no change…?Base: Total target population

20%

16%

12%

10%

12%

29%

25%

15%

13%

17%

30%

26%

17%

13%

18%

61%

64%

65%

65%

63%

43%

47%

53%

51%

45%

42%

46%

52%

50%

46%

18%

19%

23%

24%

24%

27%

27%

31%

35%

36%

25%

27%

29%

34%

35%

2014

2015

2016

2017

2019

2014

2015

2016

2017

2019

2014

2015

2016

2017

2019

Decrease No change Don't know/Refusal Increase

Number of

employees

Total

revenue

Net profit

Please give your reasons that caused you to limit hiring or retaining employees in the past 12 months.

Reasons for not hiring employees in the past 12 months

Base: Those that haven’t increased number of employees; Multiple

answers (n=770)

Vast majority of companies (77%) that haven’t increased number of employees noted that there was

no need for new workers due to market conditions.

77%

11%

10%

7%

3%

3%

There was no need for new workers due tomarket conditions

Amount of taxes and social contributions

Lack of qualified employees

Wages are too high given productivity levels

Paperwork involved in hiring and/or retainingemployees

Labor law provisions on severance pay, limitedfixed term co

Do you currently need to invest in your enterprise?

Expectations for the next year


How do you expect your business to operate in the following 12 months?


Expectations in the next 12 months Need for investment in the enterprise

Companies are mosty optimistic. Namely, half of them believe they will increace business volume in

the next year, while two thirds empasize that there is a need for investment in their enterprises.

Do you currently need to invest in your enterprise?


How do you expect your business to operate in the following 12 months?


Expectations in the next 12 months Need for investment in the enterprise

52%

36%

8%

3%1%

Increase of businessvolume

Unchanged

Decrease of businessvolume

Don't know/Refusal

I plan to close thecompany

63%

3%

35%

Yes

Don'tknow/Refusal

No


And now I will ask you about your expectations in the next 12 months regarding various aspects of business,

and I kindly ask you to tell me if you expect increase, decrease or no change in that area/aspect.

Base: Total target population/those who don’t

plan to close the company (2019; n=1000)

Net profit

Number of

employees

A constant positive trend from 2013 to 2019 can be registered when it comes to expectation

regarding net profit and number of employees.

16%

15%

12%

8%

7%

10%

12%

10%

8%

6%

3%

5%

45%

37%

41%

42%

40%

33%

67%

61%

64%

61%

61%

56%

36%

43%

42%

46%

49%

53%

20%

26%

23%

30%

31%

35%

2013

2014

2015

2016

2017

2019

2013

2014

2015

2016

2017

2019



And now I will ask you about your expectations in the next 12 months regarding various aspects of business,

and I kindly ask you to tell me if you expect increase, decrease or no change in that area/aspect.

Number of various

products/services

which your

company offers*

Total

revenue

Base: Total target population/those who don’t

plan to close the company (2019; n=1000)

*The formulation in previous years was „Introduction of new products/services“

Same trend is visible when it comes to expectations regaridng total revenue, while there is no

difference across the years when it comes to expectations regarding the number of their various

products/services.

5%

7%

5%

3%

3%

3%

14%

11%

8%

6%

9%

58%

56%

55%

57%

52%

57%

38%

42%

43%

41%

33%

35%

31%

33%

35%

38%

37%

44%

42%

46%

48%

54%

2013

2014

2015

2016

2017

2019

2014

2015

2016

2017

2019


Are you a member of a business association?

Membership in business associations


Only 8% of companies claimed to be a member of a business association other then Serbian

Chamber of Commerce.

39%

8%

55%

1%

Yes, Serbian Chamber of Commerce

Yes, some other association

No

Refusal

Please state the full name of the business association you are a member of.

Business associations most business entities are members of

Base: Those that are members of some business association (n=85);

Multiple answers

Multiple answers

None of the mentioned business associations stand out to a higher degree.

10%

4%

3%

3%

3%

3%

3%

3%

2%

2%

2%

2%

2%

2%

2%

2%

5%

Serbian Chamber of Engineers

Veterinary Association

AMS, Auto and Motorcycle Association of…

Association of transporters

Cooperative Union of Serbia

Serbian Chamber of Advocates

Association of Technical Inspection of Vehicles

Associaton ZREPOK

Informatics Society

Alliance of Students' Youth Societies

Transport and Logistics Association

Hores

UEPS, Association of Serbian Advertisers

Business Association International Transport

Craft Association

YUTA

Don't know

Legal and regulatory issues

Regulatory changes awareness

Generally speaking, how well are you informed about regulatory changes to laws and regulations in Serbia?Base: Total target population

Percentage of firms who believe they are well informed is on the rise in the past few years. Only

9% of companies claimed to be poorly informed about regulatory changes to laws and

regulation.

4%

3%

2%

3%

4%

2%

10%

8%

6%

10%

10%

7%

40%

41%

43%

44%

42%

37%

28%

32%

34%

29%

31%

41%

12%

13%

13%

10%

10%

13%

2013

2014

2015

2016

2017

2019

Very poor Poor Good Very good Refusal Excellent

Different aspects of regulatory framework and their influence on business

in Serbia

Please assess the impact of the following factors on your business based on your experience in the past 2 years.Base: Total target population

*Recalculated without answer „Not applixable“

Grey economy (61%), quasi-fiscal charges (60%) and wage taxes and contributions (52%) are the most

negatively rated aspects of regulatory framework.

61%

60%

52%

46%

44%

43%

43%

41%

40%

37%

30%

30%

35%

39%

40%

42%

39%

44%

42%

42%

6%

8%

10%

12%

9%

11%

13%

7%

11%

17%

Grey economy

Other obligatory (quasi-fiscal) charges (communal tax…

Wage taxes and contributions

Income tax

Abuse of dominant position within the sector and…

Property tax

Inconsistent implementation of regulations

Court procedures and requirements

Taxes and contributions for entrepreneurs / self-…

VAT rates

Negative No impact Don't know/refusal Positive

Different aspects of regulatory framework and their influence on business

in Serbia

Please assess the impact of the following factors on your business based on your experience in the past 2 years.Base: Total target population


On the other hand, inspection surveillance (29%), rules on money transfer (31%), as well as staff

regulations and procedures (not related to wages of taxes) (31%) are the most positively rated

aspects of regulatory framework.

33%

32%

24%

24%

22%

22%

21%

18%

15%

42%

38%

43%

43%

48%

45%

48%

46%

50%

21%

27%

27%

29%

25%

26%

29%

31%

31%

Administrative procedures that do not concern…

Collection of receivables from business partners

Transparency of decision-making (legal regulations)

Tax registration and payment procedure

VAT control and VAT refund procedure

Procedures concerning exports and imports

Staff Regulations and Procedures, which do not…

Rules on money transfers in country and abroad

Inspection surveillance

Negative No impact Don't know/refusal Positive

NEGATIVE ratings for various aspects of regulatory framework that influence

business Serbia (2013 - 2019)

Serbia (2013 - 2019)

Base: Total target population Please assess the impact of the following factors on your business based on your experience in the past 2 years.

While an improvement of other aspects is visible over the years, probem of grey economy still

apears undiminished.

73%

71%

36%

69%

69%

30%

71%

65%

59%

30%

67%

64%

57%

28%

61%

57%

54%

25%

59%

52%

57%

29%

Other obligatory (quasi-fiscal) charges

Wage taxes and contributions

Grey economy

Court procedures and requirements

2013

2014

2015

2016

2017

2019

NEGATIVE ratings for various aspects of regulatory framework that influence business in Serbia (across waves)

Base: Total target population Please assess the impact of the following factors on your business based on your experience in the past 2 years.

22%

24%

54%

19%

27%

43%

18%

25%

39%

18%

22%

40%

16%

16%

38%

14%

14%

40%

Customs and external trade procedures

Inspection surveillance

Monopolies

2013

2014

2015

2016

2017

20192019 – Abuse of dominant position within

the sector and unfair commercial practices

2019 – Procedures concerning exports and

imports

During the last 12 months has your company spent more or less TIME dealing with regulatory issues, comparing to year before that?During the last 12 months has your company spent more or less MONEY dealing with regulatory issues comparing to year before that?

Money and time spent on regulatory issues


MONEY

TIME

Although the situation looks very similar to the previous period, slightly larger share of

companies spent less money and time on regulatory issues over the past year.

33%

28%

25%

24%

20%

22%

63%

66%

71%

70%

75%

64%

4%

5%

3%

5%

5%

10%

2013

2014

2015

2016

2017

2019

More money The same amount of money Don't know/Refusal Less money

31%

22%

22%

21%

21%

19%

66%

69%

72%

70%

73%

66%

3%

9%

6%

8%

6%

11%

2013

2014

2015

2016

2017

2019

More time The same amount of time Don't know/Refusal Less time

Have political risks of doing business or investing gone up or down compared to the same period last year?

Impact of political risks to doing business


Compared to the previous years, higher percentage of companies empasized that the political risks

of doing business have gone down during 2019 (13%).

19%

18%

13%

12%

13%

66%

69%

72%

71%

63%

8%

7%

8%

10%

11%

8%

6%

6%

7%

13%

2014

2015

2016

2017

2019

Gone up Stayed the same Don’t know/ Refusal Gone down

To what extent corruption in public administration affects your business?

Effect of corruption in public administration on doing business


Similar to political risks, companies believe that the effects of corruption in public administration

on doing business are lower compared to the previous period (38%).

15%

15%

11%

13%

11%

8%

36%

39%

35%

34%

31%

30%

7%

8%

7%

6%

9%

13% 3%

43%

38%

47%

47%

50%

47%

2013

2014

2015

2016

2017

2019

It affects a lot Sometimes it affects

Don't know/Refusal Corruption does not exist in public administration

Does not affect at all

2013 2014 2015 2016 2017 2019

Average amount of fines imposed 868 € 2022 € 1148 € 962 € 898 € 2310 €

Median – amount of fines imposed 500 € 600 € 786 € 810 € 487 € 845 €

Average amount of time (in hours) spent by

management17 12 15 13 20 22

Median - amount of time (in hours) spent by

management5 5 6 5 7 5

Average amount of time (in hours) spent by

the rest of the employees12 7 9 8 14 18

Median - amount of time (in hours) spent by

the rest of the employees1 2 1 1 2 2

What is the amount of fines imposed to your company as a result of inspection in the year 2018, if there were any?

Approximately, how much time (in hours) did your entire management spend on dealing with inspections in 2018?

And approximately, how much time (in hours) did the rest of the employees spend on dealing with inspections in 2018?

Basic information on inspections


Average (median) amount of fines imposed to the companies as a result of inspections have risen compared to the previous year, but is in line with findings from 2016. When it comes to time spent, there are nosignificant differences.

Based on your experience with various inspectors, do you agree or disagree with the following statements.

Evaluation of inspectors’ work in 2019


20%

20%

20%

20%

20%

20%

20%

20%

20%

20%

66%

65%

64%

57%

56%

56%

54%

53%

52%

49%

3%

5%

4%

6%

5%

6%

16%

6%

7%

5%

12%

11%

12%

17%

19%

18%

11%

21%

21%

26%

I am informed about my rights and obligations during inspection

Inspectors have a warrant for surveillance, that is adduced to us

Inspectors are professional and polite in dealing with businesses

In case of violation by an inspection, I know whom to contact

Regulations on inspection controls are accessible and clear

I can easily contact inspection and inquire about my rights and obligations,and ask for advice

Inspections use check-lists in inspection oversight

Inspections provide information and advice in order to enable businesses tocomply with the regulations timely

Inspections are well coordinated, and they do not duplicate their requests

Inspections inform companies about the upcoming control

Company hasn’t been visited by an inspection in last 12 moths AGREE Don’t know/Refusal DISAGREE

Based on your experience with various inspectors, do you agree with the following statements

Evaluation of inspectors’ work – agreement with the statements across waves


Over the past few years, from 2016, inspectors less often did warrants for surveillance and less often used

check-lists, but are on the other hand seen as more coordinated.

23

58%

47%

26%

62%

54%

30%

72%

57%

61%

51%

25%

68%

55%

53%

48%

25%

65%

54%

53%

49%

21%

Inspectors have a warrant for surveillance, that is adduced to us

Inspections use check-lists in inspection oversight

Inspections provide information, advice and technical assistance inorder to enable businesses to comply with the regulations timely

Inspections inform companies about the upcoming control

Inspections are not well coordinated and they duplicate their requests

2013

2014

2015

2016

2017

2019

When it comes to inspectors, do you think that use of control lists is useful?

Further attitudes on inspections


When it comes to inspectors, do you know that you have the right to seek an advisory visit?


Usage of advisory visits Usefulness of check-lists

Slightly less than a fifth of companies (18%) used advisory visits. Additionally, over half of companies

(57%) believe that check-lists are usefull.

Usage of advisory visits Usefulness of check-lists

10%

8%

33%

49%

I don’t know/ Our enterprise doesn’t have experience with advisory visits of inspections

I know, but I don’t use them

I use them, but they are notparticularly useful

I use them, and they are useful27%

30%

6%

28%

9% I am not aware that there arecontrol lists

I don’t know, our enterprise doesn’t have any experience with this

No

Partially

Yes

If your business belongs to food and drinks production or processing industry, how would you evaluate the effectiveness of food control (through an implemented food control system by inspection)?; Base: Those whose business belongs to food and drinks production or processing industry (n=172)

Evaluation of the effectiveness of food control system

Scale from 1 to 5, where 1 means Food control system is completely

inadequate for assessment of actual food quality, and 5 Food control

system is completely adequate for assessment of actual food quality

Yes

No

Belonging to food and drinks

production or processing industry

17% of companies belong to food and drinks production or

processing industry.

Vast majority of firms believe that the food control system

is adequate for assessment of actual food quality.

Belonging to food and drinks

production or processing industry

17%

83%

Yes

No3%

25%

29%

32%

9% Don't know/Refusal

5

4

3

2

1

Does your company have experience in public tenders?

Public procurement

How often do the following circumstances contribute to winning on public tenders? Base: Those that have experience with public tenders

Base: Total target population Base: Total target population

Experience Attitudes

Slightly over a quarter of companies (28%) have experience with public procurements. Cheapest

financial offer, but comepence and experience as well are believed to contribute the most to winning the

public tenders.

Experience Attitudes

72%

19%

9%

We don’t have experience

We have some experience

We have a lot of experience Refusal 17%

20%

30%

35%

44%

7%

7%

20%

14%

25%

23%

28%

20%

25%

14%

53%

46%

31%

27%

17%

The cheapest financial offer

Competence for doing business andexperience in similar jobs

Connections with political parties

Private connections

Bribing members of the tender panelor other persons that may have an

impact on the decision about…

Never or rarely Don’t know/ Refusal Sometimes Often or very often


Experience with public procurement across waves

Does your company have experience in public tenders?

There are no significant difference afross the waves when it somes to their experience with public procurement.

72%

72%

73%

72%

73%

72%

19%

18%

17%

17%

16%

19%

9%

10%

10%

11%

11%

9%

2013

2014

2015

2016

2017

2019

No, we don’t have experience Yes, we have some experience

Yes, we have a lot of experience

Base: Those that have experience with public tenders (n=280)

Contribution of various factors to winning on public tenders:

average marks across waves

across waves

How often do the following circumstances contribute to winning on public tenders?

Competence is seen as more imortant factor comapred to the previous year, but on the other hand,

effects of connections and bribing is on the same level as last year.

3.8

3.1

3.1

2.6

3.1

3.7

2.9

3.4

3.0

3.2

3.8

3.0

3.2

2.8

3.1

3.9

2.9

3.3

2.7

3.1

4.0

2.9

2.8

2.7

2.2

3.6

3.4

2.9

2.8

2.4

The cheapest financial offer

Competence for doing business andexperience in similar jobs

Connections with political parties

Bribing members of the tender panel

Private connections

2013

2014

2015

2016

2017

2019

Marks from 1 to 5, 1 meaning never and 5

meaning often

Please assess how burdensome the following taxes and charges are for your business.

Influence of fees and charges on business



Communal fee for displaying business names is seen as least burdensome, while local and national

taxes, environmental taxes, municipal taxes, land development fees, water fees are seen as most

burdensome.

17%

18%

15%

21%

17%

25%

17%

2%

3%

10%

2%

10%

2%

12%

25%

26%

23%

30%

30%

31%

31%

56%

53%

51%

47%

43%

41%

40%

Local and national taxes, environmental taxes,municipal taxes, land development fees, water fees

Banking fees

Court and notary fees

Administrative fees

Customs duties

Communal fee for displaying business names on thebusiness premises/company name display fee

Excise tax

Not burdensome Don't know/Refusal No impact Burdensome

How would you rate the efficiency of the enforcement system?

Attitudes towards the enforcement system efficiency


*The scale in 2019 is a bit different – Very poor, Poor, Medium, Good, Excellent, so we

should be careful with this comparison; Recalculated without answer „Not applixable“

2019 Across waves

Opinions are devided when it somes to enforcement system efficiency, but a positive trend can be

registered across the waves.

2019Across waves

19%

28%

15%

34%

4%Don't know/Refusal

Not applicable

Good/Excellent

Medium

Very poor/Poor

56%

54%

48%

56%

44%

28%

27%

22%

31%

26%

28%

43%

9%

18%

12%

14%

16%

6%

8%

6%

9%

5%

11%

23%

2013

2014

2015

2016

2017

2019

Very poor/Poor Good

Don't know/Refusal Very good/Excellent

How long did it take you to enforce the debt in enforcement procedure?

Enforcement of the debt in enforcement procedure


Majority of companies that have experience with debts, either didn’t attempt enforcement, or is still in the process of enforcement. 6%

5%

5%

6%

4%

13%

12%

46%

5%

5%

5%

6%

5%

4%

9%

13%

50%

4%

Up to 3 months

From 3 to 6 months

From 6 months to one year

1-3 years

More than 3 years

We did not enforce the debt (still in the procedure)

Did not attempt enforcement

Not applicable

Don’t know/Refusal

2013

2014

2015

2016

2017

2019

Voluntary compliance with tax regulations

Does your enterprise obtain accounting services from an external accountancy agency or you have an accountant working in the enterprise?

Obtaining accounting services


Seven out of ten companies use external accountancy agency services, while four out of ten use

accountants working in the enterprise.

61%

30%

10%

An external accountancy agencyprovides accounting services

My enterprise has an accountantworking in our enterprise

We use an external accountancy agencyand we also have an accountantworking in our enterprise

Please evaluate to what extent the following measures would alleviate and motivate enterprises in Serbia to comply with tax regulations more?

Effect of certain measures on alleviation and motivation

of companies to comply with tax regulations more


Companies empasize that all mentioned measures alleviate and motivate enterprises to comply with tax

regulations more, with exception of stricter sanctions and more frequent tax controls.


2%

3%

5%

4%

6%

21%

21%

33%

33%

37%

39%

38%

75%

62%

59%

57%

53%

37%

Lower rates of taxes, contributions and other government taxes

Simple and understandable instructions on the application of taxregulations, transparent procedure for changing tax regulations

Better communication with accountants and accounting agenciesand better work of accountants

Tax inspection that timely notifies taxpayers and providescomplete information on the application of tax regulations and…

Spreading awareness of the consequences of non-payment oftaxes on the society and positive sides of compliance with tax…

Stricter sanctions and more frequent and rigorous tax controls

Do not aleviate Moderately aleviate (4+5+6+7) Alleviate to a high extentMean

8.7

8

7.8

7.7

7.4

6.1

Macroeconomic issues

Please evaluate how do the following factors affect the competitiveness of your business, using grades from 1 to 5, where 1 means “Very negative”, while 5 means “Very positive“.

Impact of certain factors on the competitivness of business


General economic situation and costs of labor are most negative factors affecting competitiveness.

38%

31%

22%

20%

20%

13%

31%

42%

29%

33%

30%

34%

5%

4%

25%

16%

10%

15%

25%

21%

21%

27%

37%

32%

General economic situation in the country

Costs of labor

State investment policy

General trust in the state and publicinstitutions

Availability of qualified staff or experiencedmanagers

By-laws, the introduction of Europeanregulations

Negative Neither negative nor positive (3) Don't know/Refusal No impact Positive

Please evaluate to what extent the following factors impact the competitiveness of your business, using the grades from 1 to 5, where 1 means „No impact at all“, while 5 means „Very strong impact“.

Do certain factors affect the competitivness of business


There are no specific factors that companies empasize among the mentioned factors. At least four out

of ten companies note that all mentioned factors stronly impact competitiveness of their business.

16%

22%

22%

20%

19%

31%

32%

27%

34%

34%

51%

43%

49%

42%

43%

Lack of financial resources

Lack of investment options

Disloyal competition

Legal insecurity due to unclear regulationsand non-transparency in the regulatory…

Legal insecurity due to inconsistentimplementation of regulations

No impact Neither has nor doesn't have impact (3) Don't know/Refusal Strong impact

What type of government investment / incentive would you support in order to stimulate the growth of your business?

Type of government incentives companies would support


Three quarter or more companies support all mentioned government incentives, with exception of

incentives for foreign investments which is supported by six out of ten companies (63%).

88%

86%

84%

83%

78%

77%

75%

63%

4%

5%

7%

7%

7%

7%

11%

10%

8%

9%

9%

10%

15%

17%

14%

27%

For infrastructure and equipment, fixed assets

For training of employees

To open a business in less developed territorial areas orsectors

For support of private sector exports

For research and development activities, for innovativebusiness activities or those related to intellectual property

For investors who will provide your company withadditional financing for your growth

For start up companies

For foreign (direct) investments

Would support Don't know/Refusal Would not support

Traditional financing by banks

Now we would like to ask you a question regarding the bank that you use most frequently. Why did you decide to use the bank whose services you use most frequently? Please choose 3 factors which impact your choice the most, and rank them from 1 to 3, where 1 marks the biggest impact on your choice.

The highest ranked factors for choice of the bank that is used

most frequently

Base: Total target population;

First, second and third answer

Majority of companies choose their bank primarily based on the vicinity to the comapny (27%), or the

fact that the bank meets their needs.

27% 23%17% 13% 10% 6% 2% 1%

54%

74%

51% 52%41%

6% 4% 1%

The bank is inthe vicinity ofthe company

The bank meetscompany needs

most

The bank offersloans that suit

companyoperations best

There is a bankerin this bank to

whom I becameattached

through businesscontacts

There is nobetter

alternative

I have no suchbank, I use

services of twoor more banks

equally

Other I don’t use the services of the

bank


Picked as the first answer

Estimation of different parameters

How do you evaluate the condition of the following parameters today, compared with 5 years ago?Base: Those that were established before 2012 (for 2017), i.e. 2014 (for 2019; n=960)

Your

company

debt

Borrowing

costs

Banks’

willingness to

lend

Compared to the period five years ago, companies now more often state that their debts have reduced,

as well as borrowing costs. In addition to this, companies more often believe that banks’ willingness to

lend has increased.

21%

30%

6%

8%

15%

24%

59%

56%

49%

38%

58%

55%

4%

2%

6%

3%

6%

4%

17%

12%

39%

50%

21%

17%

2017

2019

2017

2019

2017

2019

Reduced No change Don't know/Refusal Increased

Average share of different funding sources

What percentage of financing your business comes from…Base: Total target population

*Answers "Customer Advance payment/Currency Supplier" and "Factoring" are added in 2019,

and have not existed before

Compared to the previous period, own funds and banks are less frequiently mentioned as sources of

financing for the businesses. In 2019, customer advance payments/currency suppliers are mentioned

almost as often as the banks. Average percentage of

funding sources

81

12

3 1 0 1 2

85

104

0 0 0 1

85

102 0 1 0 1

87

82 0 0 0 1

84

12

2 0 0 2 1

81

91 1 0 0

70 0

2013 2014 2015 2016 2017 2019

Average share of different funding sources of businesses that are not financed

entirely from their own funds

What percentage of financing your business comes from…Base: Those that are not financed entirely from own funds (n=528)

*Answers "Customer Advance payment/Currency Supplier" and "Factoring" are added in 2019,

and have not existed before

Average percentage of

funding sources

58

27

71 1 2 4

62

25

10

1 1 0 2

64

24

51 1 1

3

62

25

7

1 0 1 2

53

34

41 1

52

64

17

2 2 0 1

14

0 1

Own funds Banks Family and/or friends Leasing Loans by stateinstitutions

Grants/Nonrepayablefunds

Customer Advancepayment/Currency

Supplier

Factoring Other

2013 2014 2015 2016 2017 2019

What percentage of financing your business comes from…

The use of external source of finance


Percentage of

companies

47%

52%

1%

Use only own fundsUse any of external source of finance

Refusal




Percentage of

companies

Exporters Non–exporters

38%

61%

1%

Use only own funds

Use any of external source of finance

Refusal

50%49%

1% Use only own funds


Refusal



Companies with web site Companies without web-site


Percentage of

companies

Companies with web site Companies without web-site

41%

58%

1%Use only own

funds


Refusal

60%

39%

1%Use only own

funds


Refusal

If you did not borrow money in the last 12 months, why not?

Reasons for not borrowing money in the past 12 months, 2019


No need for credit (41%) and use of owner’s equity istead of a loan (19%) are the two biggest reasons for

not borrowing money in the past 12 months.

41%

19%

4%

3%

3%

1%

1%

1%

25%

2%

Have no need for credit

Used owner’s equity instead of a loan

Have a borrowing need, but decided not to borrow because bankrequirements take too much time/cost

Have a borrowing need and bank products were not suitable for myneeds or risk profile

You distrust financial institutions

Were declined a loan

Did not meet the requirements to obtain a bank loan

We repay the loan we took over 12 months ago

We took loan(s) in the past 12 months

Refusal

If you did not borrow money in the last 12 months, why not?

Reasons for not borrowing money in the past 12 months, across waves

Base: Those that do not borrow money (n=758)

*Recalculated without two new answers

that exist only in 2019 - “We distrust

financial institutions" and "We repay the

loan we took over 12 months ago”

No need for credit and use of owner’s equity istead of a loan were the biggest reasons for not borrowing

money across all the waves. 19%

11%

5%

2%

3%

59%

14%

5%

5%

2%

2%

72%

25%

7%

5%

2%

2%

59%

1%

17%

5%

6%

2%

1%

68%

2%

34%

4%

4%

1%

1%

53%

3%

26%

4%

6%

2%

1%

58%

3%

Used owner’s equity instead of a loan

Have a borrowing need and bank products were notsuitable for my needs or risk profile

Have a borrowing need, but decided not to borrowbecause bank requirements take too much time/cost

Were declined a loan

I did not meet the requirements to obtain a bank loan

Have no need for credit

Refusal

2013

2014

2015

2016

2017

2019

Did you ask for a loan?

Asking for loans for financing of business in the past 12 months


Short-term business credits are by far the most common type of credit (21%) asked for in the past 12

months.

21%

8%

6%

4%

3%

2%

1%

1%

79%

91%

93%

95%

95%

96%

97%

98%

Bank – business credit (short-term)

Bank – business credit (investment)

Commercial credit – allowed overdraft/allowed minus

Leasing

Bank – credit for a natural person

Family and/or friends

Grants/Non-repayable funds

Factoring

Yes Refusal No

Did you get the amount that you asked for?

Loans for financing of business in the past 12 months – did companies get

the requested amount

Base: Those who asked for particular loan

Bank credits for a natural person apear to have been most problematic among the mentioned types of financing

loans.

89%

88%

93%

93%

79%

6%

9%

5%

4%

9%

3%

3%

2%

3%

9%




Leasing


Yes Refusal No, smaller No, we didn't get it

Asked amount?

Loans for financing of business in the past 12 months – asked amount


Mayority of companies asked for more than 25.000 EUR only when asking for investment business

credits, otherwise they were more often asking for less than 25.000 EUR.

55%

35%

66%

45%

56%

34%

57%

19%

46%

28%

11%

8%

15%

9%

16%




Leasing


Less than 25.000 EUR More than 25.000 EUR Refusal

Main purpose of the loan?

Loans for financing of business in the past 12 months – main purpose of the loan


Loans were most often used for purchase/maintenance of equipment and stock incerase. Aside from that,

to a lesser degree, leasing was used for expansion of activity, while personal loans was used for arranging

business premises.

30%

29%

10%

8%

4%

3%

1%

10%

9%

49%

15%

1%

7%

10%

5%

26%

30%

8%

6%

2%

6%

6%

1%

11%

6%

48%

27%

18%

7%

40%

9%

8%

20%

3%

13%

Stock increase

Purchase/maintenance of equipment or machinery

Expansion of activity

Refinancing old loan

Arranging business premises

Settling VAT and other state levies

Payment of income

Purchase of land or buildings

Other

Bank – business credit (short-term)Bank – business credit (investment)Commercial credit - allowedoverdraftLeasing

Bank – personal loan


Asked amount?

Main purpose of loan?

Loans for financing of business in the past 12 months - Bank –

business credit (short-term)

Base: Those who asked for a loan (n=209)

Did they get the requested amount Asked amountMain purpose of the loan

Vast majority of companies got the requested short-term credit amount, which was more often less than

25.000 EUR, and it was used for equipment and stock increase.

Did they get the requested amount Asked amount Main purpose of the loan

89%

6%3%

2%

Yes

No, smaller

No, we didn'tget it

Refusal

55%

34%

11%

Less than25.000 EUR

More than25.000 EUR

Refusal

4%

10%

1%

3%

3%

4%

8%

10%

29%

30%

Refusal

Other

Purchase of land or…

Settling VAT and other…

Payment of income

Arranging business…



Purchase/maintenance of…

Stock increase


Asked amount?


Loans for financing of business in the past 12 months - Bank – business credit

(investment)



Vast majority of companies got the requested investment credit amount, which was more often more than

25.000 EUR, and it was used for equipment.


88%

9%3%

Yes

No, smaller

No, we didn'tget it

Refusal

35%

57%

8%

Less than25.000 EUR

More than25.000 EUR

Refusal

5%

1%

3%

7%

9%

10%

15%

49%

Other


Payment of income

Arranging businesspremises

Stock increase

Purchase of land orbuildings


Purchase/maintenance ofequipment or machinery


Asked amount?


Loans for financing of business in the past 12 months - Commercial credit –

allowed overdraft


Did they get the requested amount Asked amount

Main purpose of the loan

Vast majority of companies got the requested overdraft amount, which was more often less than 25.000

EUR, and it was used for equipment and stock increase. Micro companies less often asked for loans in

amount larger than 25.000 EUR. Main purpose of the loanDid they get the requested amount Asked amount Main purpose of the loan

93%

5%2%

Yes

No, smaller

No, we didn'tget it

66% 19%

15%

Less than25.000 EUR

More than25.000 EUR

Refusal

3%

11%

1%

2%

6%

6%

6%

8%

26%

30%

Refusal

Other

Purchase of land or buildings

Arranging business premises

Payment of income


Settling VAT and other…


Stock increase

Purchase/maintenance of…


Asked amount?


Loans for financing of business in the past 12 months - Leasing



Vast majority of companies got the requested leasing amount, and it was used for equipment and

expansion of activity.


93%

4%3%

Yes

No, smaller

No, we didn'tget it

Refusal

45%

46%

9%

Less than25.000 EUR

More than25.000 EUR

Refusal

18%

6%

27%

48%

Other


Stock increase


Purchase/maintenanceof equipment or

machinery


Asked amount?


Loans for financing of business in the past 12 months - Bank – personal loan



Majority of companies got the requested investment credit amount, which was more often less than 25.000

EUR, and it was used for equipment and arranging business premises.


79%

9%

9%

3%

Yes

No, smaller

No, we didn'tget it

Refusal

56%

28%

16%

Less than25.000 EUR

More than25.000 EUR

Refusal

13%

3%

7%

8%

9%

20%

40%

Other

Purchase of land orbuildings

Stock increase



Arranging businesspremises

Purchase/maintenance ofequipment or machinery

For which part (in %) in sources which you borrowed (credit) a guarantee (collateral) is provided

by the state or by the EU guarantee scheme (COSME, HORIZON 2020, InnoFin, EASI)?

Guarantee provided by the state or by the EU guarantee scheme

Base: Those that use other funds other than their own (n=538)

StateEU guarantee scheme (2019)

Guarantees provided by the state (7% of borrowed amount on average) or by the EU guarantee scheme

(0.5%) are minimal or practicaly non-existent.

State EU guarantee scheme (2019)

68%

6%

4%

22%

86%

3%

3%

8%

88%

2%

1%

10%

81%

6%

5%

8%

82%

1%

6%

11%

None (0%)

From 1% to 20%

More than 20%

Don't know/ Refusal

2014

2015

2016

2017

2019

89%

11%

None (0%)

Don't know/Refusal

Approximately how much do you borrow from the bank annually in order to finance your

business?

Average amount of money taken from the bank annually, in EUR


Looking at median values, a clear increase in the amount of money annually taken from the bank,

can be registered in 2019.

Did those who you borrowed money from ask for any of the following collaterals (mortgage)?

Required collaterals (mortgage)

Base: Those who borrowed money (n=308)

Answer YES

Practice of requesting collaterals apears to be dwindling comapred to the previous years.

58%

41%

23%

36%

48%

46%

23%

26%

47%

34%

19%

31%

41%

33%

21%

21%

37%

34%

17%

15%

33%

33%

15%

11%

Land, buildings

Machinery and equipment, including movables

Accounts receivable and inventories

Personal asset of the owner

2013

2014

2015

2016

2017

2019

If you needed money to expand your business in the near future, what type of financing would

you rather opt for? Please select three, and rank them from 1 to 3, by priority.

Preferred types of financing for business expansion

Base: Total target population; First,

second and third answer

Over three quarters of companies (77%) noted own funds as the most prefered type of financing for business

expansion. In addition to this over half of them would prefer to use financing by business partners through

long payment deadlines and micro credit (up to 25,000 EUR).

77%

3%

5%

4%

5%

2%

5%

89%

53%

59%

40%

22%

22%

5%

Own funds

Financing by business partners through longpayment deadlines

Micro credit (up to 25,000 EUR)

Short-term bank credit (over 25,000 EUR)

Long-term bank credit (over 25,000 EUR)

Asking investor for funds (investors will get a sharein your company)


First answer

Three answers

What are the most relevant limiting factors for getting this preferred form of financing? Please

select three, and rank them from 1 to 3, by priority.

The most relevant limiting factors for getting preferred form of financing

Base: Those that would use other than own

funds (n=184); First, second and third answer

Too high interest rates or prices (28%) as well as too much paperwork (17%) are empasized as the

most relevant limiting factors for getting preferred form of financing.

28%

17%

6%

6%

5%

4%

3%

2%

1%

1%

25%

4%

51%

36%

23%

18%

20%

20%

18%

16%

8%

3%

26%

4%

Too high interest rates or price

Too much paperwork is needed

Trust

Insufficient collateral

Insufficient guarantees

I can’t get it for adequate purpose

Reduced control over company

I can’t get the adequate amount

Financing is not available at all

Other

There are no barriers


First answer

Three answers

Equityfinancing

Would you be willing to give your relevant partner a share in company ownership?

Familiarity and willingness for equity financing


Are you familiar with recapitalization (financing through sale of shares in your business)?


Familiarity and interest in

recapitalization

Willingness for giving a share in company

ownership to a relevant partner

Over half of companies (57%) stated to be familiar with equity financing, and slighly less (53%) noted

to be interested in this option. On the other hand only 8% of companies is willing to give their relevant

partner a share in company ownership.

Familiarity and interest in

recapitalization

Willingness for giving a share in company

ownership to a relevant partner

4%

53% 42%

Yes, I would beinterested in this option

Yes, but I wouldn’t be interested in this option

No, I am not

Refusal

5%

1%

2%

45%

43%

4%

Yes, smaller part

Yes, bigger part

Yes, either smaller or biggerpart

No

Not familiar withrecapitalization

DK/Ref

If you had experiences with recapitalization, who did you sell this share to?

Experience with recapitalization


Have you had any experiences with recapitalization, financing through selling a share in your business?

Base: Total target population, First answer

Experience with recapitalization To whom they sold their share

Only 2% of companies had any experiences with recapitalization. 1% sold a share of business to a family

member/friend, while 1% sold it to a strategic partner.

Experience with recapitalization To whom they sold their share

2%

54%

43%

Yes

No

Not familiar withrecapitalization

Refusal

1%

1%

54%

43%

1%

Family member/friends etc.

Strategic partner

Investment fund

Familiar with recapitalization,but didn't have experience

Not familiar with recapitalization

Refusal

Why don’t you have experience with recapitalization?

Reasons for lack of experience with recapitalization

Base: Those who are familiar with but don’t have experience with

recapitalization (n=548); Multiple answers

Primary reason for the lack of experience with recapitalization is the lack if interest (88%). Aside from that,

lack of trust was also mentiond (13%), as well as lack of adequate information about recapitalization (7%).

88%

13%

7%

3%

3%

2%

I wasn’t interested

Lack of trust

Lack of adequate information about thistype of investment

I don’t know how to establish contact with them

Potential investors weren’t interested, although I tried to present my business


Trade receivables

What is the usual duration of collecting outstanding receivables (from maturity date to payment date)?

Usual duration of collecting outstanding receivables


Every fourth company stated they do not have outstanding receivables, while for the rest of companies

usual duration of collecting outstanding receivables is up to 90 days (54%).

13%

25%

16%

9%

3%

2%

4%

24%

5%

Less than 30 days

31 to 60 days

61 to 90 days

91 to 180 days

181 to 240 days

241 to 360 days

More than a year

We have no outstanding receivables


What is the usual duration of collecting outstanding receivables (from maturity date to payment date)?

Usual duration of collecting outstanding receivables, by official size


Micro companies far more often noted not too have outstanding receivables (28%). On the other hand,

medium and big companies usualy have outstanding receivables, which they collect in less then a month

(17%), or more often in one to two months (31%). Compared to others, small companies more often collect

receivables in up to six months (14%).

13%

25%

16%

9%

3% 2%

4%

24%

5%

13%

24%

15%

7%

3% 2%3%

28%

5%

12%

26%

20%

14%

2% 3%

6%

12%

5%

17%

31%

16%

10%

5%

9%8%

4%

Less than 30days

31 to 60 days 61 to 90 days 91 to 180days

181 to 240days

241 to 360days

More than ayear

We have nooutstandingreceivables


Total Micro Small Medium + big

Does your company use any form of grouping receivables in different categories in terms of their collectability („uncollectible receivable“ and „suspicious receivable“)?Would it be helpful if you had a manual/ online application with guidelines about how to manage your receivables, or how to collect them more easily and more cheaply?

Grouping receivables/ manual for managing receivables


Grouping receivablesUsefulness of manual for

managing receivables

Only 15% of companies stated that they are using any form of grouping receivables. Additionally, only

slighly over a quarter of companies (28%) believe that it be helpful to have a manual on how to manage

their receivables.

Grouping receivablesUsefulness of manual for

managing receivables

15%

81%

4%

Yes

No

Refusal28%

58%

15%

Yes

No

Refusal

Who would you turn for help if you were to make a business decision in an area that you are

not directly familiar with (e.g. tax optimization, getting loans or access to financing,

initiating a law suit, taking collaterals etc.)?

Getting advice for making a business decision

Base: Total target population; First, second and third answer

If they were to make a business decision in an area they are not directly familiar with, business

representatives would firstly turn to their bookkeepers (32%) or an expert in the given area (31%). A fifth

of business representatives empasized that they would make their own decisions.

32%

31%

19%

10%

8%

1%

51%

57%

30%

35%

37%

1%

Accountants

Expert in the given area

I make my decisions, without consulting anyone

Lawyer

People engaged in business development

RefusalFirst answer

All answers

Here we have a list of the forms of external financing. Please rate these forms on the scale from 1 to 10, where 1 means „no effect on your business“, and 10 means „strong effect on your business“.

Impact of various forms of external financing on doing business


Mean

5.3

5.1

4.7

4.7

3.6

3.1

2.7

2.4

2.2

Advance payment, as well as extension of payment deadline over 30 days are seen as forms of external

financing with strongest effect on their business. On the other hand, leasing, factoring and issuing

securities are seen as forms with the weakest effect.

33%

34%

41%

41%

58%

63%

70%

69%

76%

38%

37%

34%

35%

24%

25%

19%

19%

17%

27%

27%

23%

22%

16%

9%

8%

4%

4%

Advance payment (advance payments made within 30 or more…

Extension of payment deadline over 30 days

Available forms of bank financing (e.g. credits, loans, overdraft etc.)

Increase of basic capital

Government assistance and credits

Credits and loans taken from related business entities

Leasing

Factoring

Issuing securities

No effect Moderate effect (4+5+6+7) Strong effect

Fintech solutions and financing

Have you heard of/do you know what tokenization is (the process of converting

property with real value to property with digital economic value or token)?

Awareness about crowdfunding and tokenization


Have you heard of/ do you know what Crowdfunding is (a way to finance projects or enterprises by collecting donations from many people who give relatively small sums, usually via the internet)?


Crowdfunding Tokenization

Regardless of their size, slightly less than a fifth of companies (17%) mentioned that they know what

crowdfunding is, whlie twice as many companies (34%) mentioned that they know what tokenization is.

Crowdfunding Tokenization

17%

82%Yes

No

Refusal 34%

65%

Yes

No

Refusal

Is your company present on social networks?

Type of company’s product/service, presence on social networks and experience

with digital marketing


Is your product/ service easy to understand

and designed for wide range of users?Do you have experience with digital marketing (advertising on social networks and/or other internet channels)?

Base: Total target population Base: Total target population

Type of company’s product Presence on social networks Experience with digital

marketing

Almost four out of five companies (78%) noted that their product/ service is easy to understand and designed for wide range of users. Regardless of the company size, over half of them (54%) have no experience with digital marketing, whlie three out of ten emphasized that have no presence on social networks and are not planning change that.

Type of company’s product Presence on social networks Experience with digital

marketing

78%

21%

Yes

No

Refusal

28%

27%

14%

30%

Yes, they are a partof our daily business

Yes, but we rarelyuse them for

business

No, but we areplanning to be

No, and we are notplanning to be

46%

54%

Yes

No

Why wouldn’t you use any of these new technological financial solutions?

Preferences for new technological solutions for business financing


Would you use any of the following new technological financial solutions for

financing of your business?

Base: Those who are familiar with crowdfunding and/or tokenization but wouldn’t use them (n=289); Multiple answers

Preferences Reasons for not using

Only 5% of companies would use any of the new technological solutions for business financing, primarily

due to the lack of confidence in them, or lack of information about them.

Preferences Reasons for not using

2%

1%

1%

1%

29%

60%

9%

Yes, crowdlending

Yes, crowdfunding based oncapital

Yes, fintech loans

Yes, tokenization

No, I wouldn't use any of thelisted

Not familiar with neithercrowdfunding nor…


47%

35%

34%

16%

5%

I have no confidence in them

I don’t understand them/ I don’t have enough information about

them

I don’t think that I would raise enough money that way

They are not available/ legalizedin Serbia


E-commerce

How do you generally feel about the relevance of e-commerce?Base: Total target population

Relevance of e-commerceSeven out of ten companies (71%) agree that the relevance of e-commerce It will grow strongly globally, as

a commerce channel, in the period to come, on the other hand six out of ten (58%) believe the same when

in comes to Serbia.

71%

58%

15%

18%

7%

6%

7%

18%

It will grow strongly globally, as acommerce channel, in the period to come

It will grow strongly in Serbia, as acommerce channel, in the period to come

AGREE I neither agree nor disagree Don’t know/Refusal DISAGREE

12%

54%

34%

We have both webpage/web-

site and web shop (the possibility of

online sales)

We have a webpage/web-site but not a web shop

We don't have webpage/web-site

Have you ever considered creating a web shop?Does your company have a webpage/web site?

Possesion of webpages and web shops

Base: Total target population Base: Those that don’t have webpage (n=888)

Possesion Consideration of creating a web shop

Two thirds of companies (66) have a webpage, whlie only 12% have a web shop. Majority of those who do

not have a web shop haven’t ever considered creating it (81%).

Possession Consideration of creating a web shop

5%

3%

4%

4%

81%

2%

1%

Yes, but I am not sure about thebenefits

Yes, but it’s expensive, I can’t afford it

Yes, but maintenance is complicated

Yes, but I don’t know/ I am not sure that I can provide a web shop

No, I haven’t considered it

Yes, other

Don’t know

Why?Does your company have the option of online payment (pay card, e-money, other)?

Option of online payment on web shops

Base: Those that have web shops (n=126) Base: Those that don’t have the option of online

payment (n=42)

Option of online payment Reasons for not providing this option


8% of companies have web shops with the option of online payment. Among the reasons for not having

an online payment option, type of product and lack of interest were mentioned.

Option of online payment Reasons for not providing this option

33%

62%

5%

No Yes Don't know/Refusal

4%8%

88%

No

Yes

Don't have web shop 37%

22%

41%

Because of thetype of product

we sell

We have noneed

Other

Do you have adequate information about consumers’ rights on your web shop (for instance that they have the right to change their mind and return the purchased product without explanation, within 14 days upon delivery)?

Web shops

How important is your web shop as a sales channel for your company?

Base: Those that have web shops (n=126) Base: Those that have web shops (n=126)

Information about consumers’ rights on web shop Web shop as a sales channel

Half of companies with web shops stated to have adequate information about consumers’ rights on theirweb shops.Four out of ten companies that have web shops believe they they are not not an important sales channel for their company.

Information about consumers’ rights on web shop Web shop as a sales channel

54%

15%5%

26%

Yes

No, but I am familiar with them

No, I am not …

Don't know/Refusal

27%

27%

40%

6% Don’t know

Not really important

As important as traditionalshop

Very important, ourbusiness grows throughthis channel

Employee's skills

Lack in employees’ skils

Thinking about the following skills (which are important for your business growth), to what extent do candidates for positions in your company lack them?Base: Total target population

Potential candidates mostly have problems with general attitude toward work and solving problems, while

least problematic seem to be digital skills and languages. Technical/ special skills are more problematic to

candidates for companies in manufacturing, while less so for the ones in trade. Additionally, team work

and general attitude towards work are more problematic to those companies that do not have a webpage.

28%

28%

40%

35%

33%

32%

33%

39%

44%

43%

45%

46%

38%

43%

46%

46%

48%

42%

39%

41%

26%

25%

22%

22%

20%

20%

18%

15%

15%

13%

General attitude towards job/work

Solving problems

Team work

Technical/ special skills

Willingness to learn

Self-management

Communication skills

Leadership and management

Technology, computers and digital…

Languages

Lack the given skill least Moderately lack the given skill Don't know/Refusal Lack the given skill most

The importance of digital skills at workplace

Does the nature of your business require that

your employees have digital skills?

Please evaluate how important it is for your business at the moment that your employees have digital skills.

Base: Total target population Base: Those whose business require that their employees have digital skills (n=478)

Slightly less than half of the companies (47%) stated that the nature of their business require for employees

to have digital skills. Majority of these companies (83%) redominantly require basic digital skills, while a

fifth require specialized digital skills.

47%53%

Yes

No29%

55%

15%

31%

25%

83%

40%

20%

Basic digital skills

Advanced digital skills

Specialized digital skills

Not important Moderately important Refusal Very important

To what extent to you agree or disagree with the following statements? Base: Total target population

Majority of companies (74%) agree that the role of the financial sector is important for economic

development. Opinions are devided when it comes other statements.

4%

27%

29%

24%

27%

28%

32%

31%

40%

3%

8%

7%

6%

7%

9%

13%

6%

20%

40%

34%

43%

42%

41%

38%

37%

36%

74%

31%

29%

26%

26%

24%

21%

20%

19%

The role of the financial sector is important for economic development

The state of infrastructure that is necessary for doing your business hasimproved

The access to finance for your business has improved in the last 12 months

Public administration’s work is more efficient now than a year ago

Transparency and predictability for doing business in Serbia has increasedin the past 12 months

I am aware and understand the GoS economic growth strategy forbusinesses

Business ability to participate in reforming laws related to the businessenvironment has improved in the past 12 months

Quality of public dialogue and debate on macroeconomic and fiscal issueshas improved in the past 12 months

The burden of laws and regulations has decreased in the past 12 months

DISAGREE Don't know/refusal Partially agree AGREE

Evaluation of project impact

To what extent to you agree or disagree with the following statements?

Transparency, predictability and private dialogue


Transparency and predictability for doing

business in Serbia increased in the last 12 months

Quality of public dialogue and debate on

macroeconomic and fiscal issues is improved in the last

12 months

*Recalculated without answer Don’t know because it was only included in 2019

Transparency and predictability, as well as quality of public dialogue are improving over the years based

on the opition of business representatives.

55%

45%

38%

37%

40%

28%

56%

42%

41%

40%

43%

35%

36%

41%

46%

44%

45%

45%

33%

41%

42%

41%

42%

42%

9%

14%

17%

19%

14%

27%

11%

17%

17%

19%

15%

23%

2013

2014

2015

2016

2017

2019

2013

2014

2015

2016

2017

2019

Disagree Partially agree Agree


Understanding of the GoS economic growth strategy, and access to finance


I am aware and understand the GoS economic growth

strategy for businesses

The access to finance for your business is improved in

the last 12 months


Access to finance has improving over the years based on the opition of business representatives, while

awareness and understanding of the GoS economic growth strategy has improved.

50%

37%

39%

39%

38%

30%

64%

52%

46%

41%

35%

32%

35%

42%

43%

40%

44%

44%

29%

32%

40%

39%

42%

37%

15%

21%

18%

21%

18%

26%

7%

15%

15%

19%

22%

31%

2013

2014

2015

2016

2017

2019

2013

2014

2015

2016

2017

2019



Private sector ability to participate


The burden of laws and regulations decreased in the

last 12 months

Business ability to participate in reforming laws

related to the business environment has improved

in the last 12 months


Similarly, business ability to participate in reforming laws has impromed, while the burden of laws and

regulations has decreased have decreased.

63%

46%

46%

45%

50%

42%

63%

47%

43%

43%

48%

36%

30%

37%

40%

38%

38%

38%

30%

37%

42%

40%

38%

41%

7%

17%

15%

16%

12%

20%

7%

16%

15%

16%

15%

23%

2013

2014

2015

2016

2017

2019

2013

2014

2015

2016

2017

2019



Public administration, financial sector and infrastructure


The role of the financial sector is important in

economic development

Public administration’s work is more efficient now than a

year ago

The state of infrastructure that is necessary for doing

your business has improved


Public administration’s work is assessed as more efficient, while ever larger share of companies believe

that the role of the financial sector is important for economic development and that the state of

infrastructure necessary for doing your business has improved.

11%8%6%7%8%

4%

45%44%

41%37%

26%

42%42%

35%36%

28%

21%28%

27%24%22%

20%

39%40%

40%43%

46%

45%43%

45%50%

41%

68%64%

67%68%69%

76%

16%16%

19%20%

28%

13%15%

19%13%

31%

201320142015201620172019

20142015201620172019

20142015201620172019


methodology - usaid cooperation for growth project...reasons for not hiring employees in the past 12...

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