Analytical Center to Poll Businesses Again on Competitive Environment

26 january 2016

Between January 25 and February 28, 2016 the Analytical Center will be conducting its third annual survey of business representatives on the state of competitive environment. The idea is to assess the 'well-being' of business under the economic and political conditions that entrepreneurs and investors are facing at the moment.

The previous survey conducted in early 2015, when the economy was slowing down very quickly, showed that competition was thinning in Russian regional markets. Business representatives then rated the level of competition in Russian economy as moderate, about 53%, which was significantly less than their assessment in 2014, when they pegged it at 70%.

Businesses then noted that the largest amount of competition existed in retail trade, services, construction, and the food industry, while the lowest level of competition was experienced in agriculture, metal production, and among machines and equipment manufacturers. At the same time, all respondents said competition in the food industry was declining because foreign players had left the market.

A key barrier to business development was lack of access to financial resources: 52% of respondents mentioned this factor. On the other hand, another major cause of declining competition, according to the respondents, was actions of government authorities: 58% of the respondents pointed to anti-competitive steps made by the authorities, while 53% said the latest changes in laws and regulations had reduced competition.

The findings of this year’s survey will help develop recommendations and proposals for building mechanisms of reducing unfair competition and getting rid of the factors that have a negative impact on the competitive environment in Russian markets. The findings will also be used in the annual Report on the State of Competitive Environment that will be published on the website of the Analytical Center.

Go to the survey

Context:

Competitive Environment Assessment in Russia: December 2015 Report

Competitive Environment Assessment in Russia: December 2015 Report