Special researches

  • 10.10.2003

    A terra incognita of Ukrainian business: What do we know about medium-sized industrial enterprises?

    Poll period:  February and July 2003
    • Most Ukrainian industrial MEs (medium-sized enterprises) originated as a result of privatisation and downsizing of former state enterprises.
    • Contrary to their western counterparts, Ukrainian MEs are mainly represented by joint-stock companies (JSCs) with a high potential for corporate governance problems.
    • Small businesses (SEs) do not represent a significant source of medium-sized sector development due to problems with incentives and opportunities for growth.
    • Half of the SEs consider that loosing their tax privileges and simplified accounting are disincentives for growing beyond their size group.
    • 19% of the MEs consider using simplified taxation schemes in their growth plans.
    • ME investment activity is rather low and they consider a lack of profits to be an impediment to investment more often than do the SE and LE (large enterprise) groups.
    • The share of profitable firms is lowest among MEs.
    • The ME restructuring activities and their dynamics of performance show a “staying–in–the-middle” approach.
    • MEs report a lower level of security of property rights than do SEs and LEs.
    • The larger the firm the more it believes it to be important for business success to maintain informal relations with representatives of the public authorities.
    • MEs consider uncertainty of corruption outcomes more likely than do the other size groups.
    • 2003, MEs have the lowest share of firms with tax arrears compared to SEs and LEs.
    Attached file  (525.7 kb)
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