Belarus’ private companies size down planning horizon, suffering from receivables - expert
<p> MINSK, Jan 15 - PrimePress. Private businesses in Belarus have shortened their planning horizon and suffer from receivables, economist Maria Akulova of the Centre for Economic Research BEROC said in the publication Business&Economic Review №3. </p> <p> </p> <p> "Companies have a sharply reduced planning horizon. Previously, they could make plans for a year in advance, but now they plan for a few weeks, or at best for two to three months. In such a situation, it is difficult to think about expansion and implementation of investment projects. The country's image also affects the search for external financing: now investors, with few exceptions, will not put money in Belarus. In this situation, it is difficult to think about innovation or the purchase of new equipment,” said Akulova. </p> <p> </p> <p> She draws attention to the continued macroeconomic instability, which leads to problems in business. “For example, it has become difficult for importers to acquire the foreign currency they need to buy goods abroad. There are serious problems associated with the inability of many counterparties to fulfil their obligations. Accounts receivable have risen for a large number of companies in 2020. In November, we conducted a survey of 400 small and medium-sized enterprises, and 120 of those surveyed acknowledged accounts receivable as one of their major problems,” said Akulova. </p> <p> </p> <p> Under such circumstances, a number of Belarusian companies are thinking about relocation, but, in her opinion, this phenomenon will not be massive, especially among manufacturing businesses. One of the main problems for business is the outflow of qualified personnel from the country - engineers and doctors. The departure of students, who are potential workforce for business, will create additional problems in the future. </p> <p> </p> <p> Akulova refrained from predicting developments for 2021 because of the high degree of uncertainty. “If the situation were only about the pandemic, we could expect many countries to open as early as January and February because of the vaccine and this would ease business operations. But too much depends on what happens in the domestic market, and it is a huge black box today,” she said. End </p> <p> </p>
2021-01-16
Primepress
Belarus’ private companies size down planning horizon, suffering from receivables - expert
MINSK, Jan 15 - PrimePress. Private businesses in Belarus have shortened their planning horizon and suffer from receivables, economist Maria Akulova of the Centre for Economic Research BEROC said in the publication Business&Economic Review №3.
"Companies have a sharply reduced planning horizon. Previously, they could make plans for a year in advance, but now they plan for a few weeks, or at best for two to three months. In such a situation, it is difficult to think about expansion and implementation of investment projects. The country's image also affects the search for external financing: now investors, with few exceptions, will not put money in Belarus. In this situation, it is difficult to think about innovation or the purchase of new equipment,” said Akulova.
She draws attention to the continued macroeconomic instability, which leads to problems in business. “For example, it has become difficult for importers to acquire the foreign currency they need to buy goods abroad. There are serious problems associated with the inability of many counterparties to fulfil their obligations. Accounts receivable have risen for a large number of companies in 2020. In November, we conducted a survey of 400 small and medium-sized enterprises, and 120 of those surveyed acknowledged accounts receivable as one of their major problems,” said Akulova.
Under such circumstances, a number of Belarusian companies are thinking about relocation, but, in her opinion, this phenomenon will not be massive, especially among manufacturing businesses. One of the main problems for business is the outflow of qualified personnel from the country - engineers and doctors. The departure of students, who are potential workforce for business, will create additional problems in the future.
Akulova refrained from predicting developments for 2021 because of the high degree of uncertainty. “If the situation were only about the pandemic, we could expect many countries to open as early as January and February because of the vaccine and this would ease business operations. But too much depends on what happens in the domestic market, and it is a huge black box today,” she said. End