Discontent with the business environment in Slovakia continues

The Business Environment Index has dropped by 2.24 percent over a year.

Businesses in Slovakia go on to be dissatisfied with the business environment in the country. Businesses in Slovakia go on to be dissatisfied with the business environment in the country. (Source: Sme)

The business community is still dissatisfied with the environment in which they run their businesses in Slovakia.

Read also:Entrepreneurs perceive Slovakia's business environment more positively Read more 

The Business Association of Slovakia (PAS) has published its regular index, which confirms the trend of the worsening perception of companies in regards to the Slovak business environment.

The Business Environment Index (IPP) surveyed the moods of entrepreneurs during the first six months of 2019. It dropped by 2.24 percent year-on-year.

Although the negative stance towards the business environment continues, it is gradually improving, the PAS claimed.

However, when the IPP was first published in 2001, it started at the level of 100 points. Currently, it stands at 42.69 points, which is a drop by 0.98 points compared to the previous half-year.

Problems dominate

Businesses see the law enforcement and the functioning of the judiciary as the main barriers in running a business in Slovakia. In addition, bureaucracy, the lack of a labour force, access to state support, corruption, and the stability of laws are perceived negatively.

Conversely, entrepreneurs praised that legislation concerning labour, investments, and taxes has improved. Yet, the constitutional laws on retirement age cap and minimum wage are regarded as the most harmful laws.

The negative stance also persists because of the approach of Slovak political representation towards businesses, which is seen as “confrontational” or even as “dishonouring”, the PAS said in its press release.

Read also:Slovakia's business environment has been stuck Read more 

Businesses vs social partners

Additionally, entrepreneurs say that their interests are overlooked by the interests of social partners, which are often favoured.

“We are convinced that the interests of businesses, workers and all society do not go against each other,” the PAS wrote in the press release.

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