Private Service Firms in a Transitional Economy. Findings of a Survey in St.Petersburg

摘要

The report presents the findings of a survey of private service firms in St.Petersburg. Services are defined as all sectors of the economy other than agriculture, manufacturing, construction, and utilities. The report examines in some detail the characteristics of the city's new entrepreneurs and their firms. It discusses wages, prices, and the markets in which these firms operate, and it analyzes firm performance. Despite a difficult business environment characterized by high inflation and declining output, most firms were performing reasonably well. The problems most frequently mentioned were an unstable macroeconomic and legal environment, the lack of bank financing, and high taxes. Key recommendations for policy reform are to: improve the business environment; strengthen core government institutions while reducing intervention into markets; and reduce and simplify taxes.