1. Business Survey 2014 Belgrade November 21, 2014 #1000preduzeca

2. Business Survey 2014 #1000preduzeca

3. Methodology Realization: research was conducted in the period between 3rd of September and 1st of October 2014 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 (2012) Sample size: 1009 business entities Stratification: according to region, economic activity of business entities and size Method of data collection: Face-to-face interviews in company offices Average duration of the interview: 50 minutes #1000preduzeca

4. Business Survey 2014 #1000preduzeca

5. ItemMeasure # Companies participating in survey / # invited1009 / 3988 Founded before / after 200048% / 52% Profitable / unprofitable 2011-13 2011: 90% / 10% 2012: 88% / 12% 2013: 86% /14% Characteristics of Surveyed Companies % of participants in survey #1000preduzeca

6. Gender differences Employees (on average) Owners/Managers (on average) Work forceOwnership structure TotalEnterprises Entrepreneurs Women make up 36% of employees and 27% of managers. Men own more than half of the company in 78% of firms #1000preduzeca

7. Sales by Market Average for All Surveyed Companies #1000preduzeca

8. Business Associations Membership by year Evaluation 2014 Membership 2014 #1000preduzeca

9. Expectations for the near future 9 Specific expectations Do you expect increase, decrease or no change in that area/aspect? #1000preduzeca

10. Business Survey 2014 #1000preduzeca

11. What changed in the last year? Significant Improvement Information about reforms Business participation in reforms Senior management time dealing with red tape Procedures for payment of wage taxes and contributions Type of collateral required by banks Some Improvement Time and money spent on regulatory issues Para-fiscal charges Wage taxes and contributions Administrative procedures Court procedures Inspection surveillance Construction permits (time) Labor law Customs and trade procedures Customs duties Excise taxes Service in financial institutions No Improvement Tax administration Payment transactions Business licenses Corruption Inflation Shadow Economy Bank interest rates and fees Amount of collateral required by banks Worse Access to finance Construction permits (cost) Fairness in public procurement VAT rate Exchange rate volatility

12. Evaluation of New Reforms #1000preduzeca

13. What changed from 2011 to 2014? Significant Improvement Inspection surveillance Corruption Transparency & predictability Quality of public dialogue Public procurement Wage taxes and contributions Management time dealing with regulations Duration of loan approval process Some Improvement Para-fiscal charges Business licenses Enforcement of judgments Type of collateral required for loans Interest rates and loan fees Duration of loan term Business association services No Improvement Inflation Exchange rate volatility Customs duties Tax administration Administrative procedures Payment transactions Construction permits Labor law Customs procedures Amount of collateral required for loans Worse Court procedures Availability of finance Type of finance used VAT Excise taxes Quality of service in banks Reporting requirements by banks

14. Time and money spent on regulatory issues Money Time During the last 12 months has your company spent more or less money and time dealing with regulatory issues compared to the previous year? #1000preduzeca

15. Senior management time spent in dealing with regulatory requirements 2011201220132014 Up to 10% of work time17%12%23%29% From 10 to 20% of work time 29%26%32%28% From 20 to 50% of work time 42%44%33%35% More than 50% of work time 12%18%12%9% What is the amount of senior management time spent in dealing with regulatory requirements? #1000preduzeca

16. Business Survey 2014 #1000preduzeca

17. Corruption in public administration To what extent does corruption in public administration affect your business? Effects of corruption on business Blackmail by a public servant Have you experienced blackmailing by a public servant in an administrative procedure? Reported use of private connections Have you ever used some private connections in dealing with public administration issues? #1000preduzeca

18. Public procurement Base: Those who have experience with public tenders: (2011=400, 2012=400, 2013=293) How often the following circumstances contribute to winning on public tenders? Marks from 1 to 5, 1 meaning never and 5 meaning often #1000preduzeca

19. Grey economy estimates According to your estimate, out of the total number of employees working in enterprises that operate in the same industry as your company, for what percentage of employees do the enterprises pay (1) full contributions on salaries, (2) only partial contributions on salaries, and (3) no contributions on salaries at all? #1000preduzeca

20. Business Survey 2014 #1000preduzeca

21. Negative Impacts on Businesses Please assess the impact of the following elements on your business (percentage of negative ratings) #1000preduzeca

22. Inspections 2011201220132014 Average amount of fines imposed2128 €1655 €868 €2022€ Average amount of time (in hours) spent by management 70341712 Average number of visits in the year before5.56.03.12.2 Average number of visits in the current year4.83.82.11.6 Base: Those who were visited by inspections (754) Base: Those who were visited by inspections (2011=738, 2012=755, 2013=816, 2014=754) What was the most frequent inspection in 2013 in your company? Basic information on inspections: #1000preduzeca

23. Construction permits Do you agree with the following statements? #1000preduzeca

24. The enforcement system How would you rate the efficiency of the system for enforcement of judgments? Base: Private business entities with 3 or more employees: 2011 (N=913), 2012 (N=1020), 2013(N=1029) and 2014 (1009)  Comparison across waves:  Total  *to achieve reliable comparability, only clearly negative and clearly positive marks were included, due to unequal number of missing values #1000preduzeca

25. Hiring Employees Base: Private business entities with 3 or more employees: 2014 (N=1009) Please give your reasons that caused you to limit hiring or retaining employees in the past 12 months. #1000preduzeca

26. Business Survey 2014 #1000preduzeca

27. The Most Negative External Factors #1000preduzeca

28. Business Survey 2014 #1000preduzeca

29. Economic factors related to competitiveness 29 Please evaluate how the following factors affect the competitiveness of your business #1000preduzeca

30. Business Survey 2014 #1000preduzeca

31. Funding sources #1000preduzeca

32. Reasons for Not Borrowing Base: Private business entities with 3 or more employees: 2014 (N=1009) If you did not borrow money in the last 12 months, why not? #1000preduzeca

33. Types of finance used Please indicate the type of finance you have used and how often Type of finance used often and all the time: #1000preduzeca

34. Suitability of the available finance How suitable is the available finance to your needs? #1000preduzeca