Investment Level and Structure in the Region of Central and Eastern Europe and Barriers for Investment Growth Reported by Entrepreneurs in the Light of Findings of Own Survey Research

Abstract

The purpose of the paper was to conduct the author’s own survey research on barriers reported by entrepreneurs in the countries of Central and Eastern Europe. It should be pointed out that in this article the notion of Central and Eastern Europe was “limited” and covers 10 countries: Poland, the Czech Republic, Hungary, Slovakia, Slovenia, Lithuania, Latvia, Estonia, Romania, and Croatia. As a result of the selection from among 1000 enterprises, a group of 600 was selected, including the survey covered 129 enterprises. The method of indirect survey was adopted (surveys were sent to enterprises by e-mail). The surveyed sample was selected in such a way that the surveyed enterprises were arranged evenly across particular countries and were characterized by different range and profile of activities. Service enterprises were a dominant group (96 enterprises, i.e. 74.4% of surveyed enterprises), others were production enterprises (33 enterprises, i.e. 25.6% of the surveyed enterprises). Among the surveyed enterprises, 98% were small and medium-sized enterprises. During the survey, eight investment barriers in particular countries of the region, were most often indicated by the surveyed enterprises. The conducted survey research on investment barriers for enterprises in the region of Central and Eastern Europe indicates serious problems associated with complexity and instability of the tax system and with excessive bureaucracy, high labour costs, volatility and low quality of law, and high taxes.