Entrepreneurs for the first time named political instability, not corruption, as the main problem hindering business in 2021. The Chamber of Commerce and Industry of Kyrgyzstan reported based on the results of an opinion poll.
The organization, together with the Business Development and Investment Council, learned from entrepreneurs about their main challenges. The survey was conducted by the method of electronic questioning among more than 100 entrepreneurs from different sectors of the economy of all regions of the country. Respondents were asked to answer 34 questions regarding interference of law enforcement agencies in business activities, complex customs procedures, non-transparency of public procurement, restrictions on access to financial resources, inefficiency of the judicial system and many other significant problems.
«The analysis showed that respondents named political instability (70.3 percent) and quarantine (56.4 percent) among the most pressing problems faced by companies. In addition, ineffective work of the judicial system, corruption, complicated customs procedures and VAT refunds to small and medium-sized businesses, pressure from law enforcement agencies were named among the problems. Least of all entrepreneurs (6.9 percent) are concerned about the difficulties associated with acquisition of raw materials and materials. Other 10.9 percent experience difficulties in purchasing, renting and operating equipment,» the Chamber of Commerce and Industry told.
More than half (55.4 percent) of survey participants noted various barriers they faced in receiving assistance.
This is the lack of available information in the regions, incompetence of civil servants, the high size of social contributions, and unfair competition.
Based on the results of the survey, key recommendations were developed for improving government measures to support small and medium-sized businesses. The state is invited to adopt a government Charter (declaration) on state support for the development of small and medium-sized businesses. In addition, concessional lending to small and medium-sized businesses is needed for investment purposes in priority sectors and replenishment of working capital. Businesses also need interest-free loans, financial subsidies, and reimbursement of rent and utility bills as direct financial support for startups.
It is proposed to provide state guarantees for loans, restructure loans, grant deferrals for payments, simplify import and export procedures, abolish penalties and extend the deadlines for execution of government contracts.
