🤓 Rusia🇷🇺: Business Owners See Informal Economy as Barrier to Business Growth

🤓 Rusia🇷🇺: Business Owners See Informal Economy as Barrier to Business Growth

Between September and October, the Russian Chamber of Commerce and Industry surveyed 20,319 people, mainly business founders, owners, and senior and mid-level managers, to assess the impact of the informal sector on their businesses.

➡️ One in two entrepreneurs (51%) reported facing informal competition in their sector. Of these, 40% estimate that the size of the informal sector in their industry does not exceed 10%.

➡️ Among the main characteristics of the informal economy, entrepreneurs highlighted lack of legal registration (47%), tax evasion (44%), operation without permits (41%), and undeclared wage payments (34%).

➡️ As "indicators of informal activity," respondents pointed out payments made via direct bank transfers and the hiring of freelancers without formal contracts.

➡️ Nearly 50% of respondents believe the informal economy has a significant impact on their businesses, while 27%report substantial revenue losses due to informal competition.

😏 The Dark Side of the Economy: Experts link the growth of the informal economy to the high tax burden and, as noted by Oleg Buklemishev, director of the Economic Policy Research Center at Moscow State University, to excessive regulation that stifles the growth of formal businesses.
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