Small Business Is Afraid of Inflation
Small and medium businessmen are more pessimistic about their future than about the current state of affairs, according to research conducted jointly by Trust Bank and Romir Holding. “Entrepreneurs are in a constant state of alarm over the future, although they continue to expect further expansion of their businesses and evaluate their present situations as rather positive,” the study concludes.
The main innovation of the study is the Small and Medium Business Index, developed by the University of Michigan and adapted for Russia . There are two components to the indicator, index of current condition and an index of expectations. Each is on a scale of 100, so a completely positive indicator is 200. A score of 100 is equally positive and negative and below 100 is dominantly negative. In January of this year, the index was 142, the same level that was found in September 2007.
In spite of fluctuations, the index is rising on the whole. “Fluctuations in the index are insignificant and characterize the stable condition of that sector of the market,” the authors concluded. The index rising with the size of the business in question – the fact that the business has grown to a relatively large size is already a sign of success. The index of expectations is always lower than the current index. Inflation is the largest source of concern for small businessmen. The index almost always falls when inflation rises, and rises when inflation falls.
www.kommersant.com
All the Article in Russian as of Apr. 01, 2008
|
