Barriers to Entry and Growth of New Firms in Early by Iraj Hoshi, Ewa Balcerowicz, Leszek Balcerowicz

By Iraj Hoshi, Ewa Balcerowicz, Leszek Balcerowicz

inefficient and uncompetitive businesses specifically from the over-grown commercial zone. those preliminary stipulations intended that, within the early levels of transition, the quantity of entries and exits could be, by means of necessity, very excessive ­ reflecting the big scale adjustments that needed to happen prior to those economies reach a macroeconomic constitution in line with their point of improvement and with the wishes of a market-based economic climate open to internationalcompetition. one of many major parts of the reform programme in all economies in transition was once the liberalisation of access stipulations. in addition to the liberalisation of costs and overseas exchange, acceptable measures facilitating the institution of recent firms have been licensed within the very early part of reforms in all of those international locations. The effectiveness of liberalised access stipulations, after all, relies on the presence of acceptable criminal and institutional framework during which new agencies will function. The institution of a conducive criminal and institutional setting, besides the fact that, takes for much longer. In perform, new enterprises come into life ahead of the principles of the sport are accurately demonstrated. those ideas boost steadily and aren't continually, and all over the place, in line with the purpose of liberalising the access stipulations. The stipulations dealing with new organisations, accordingly, have fluctuated in a few nations based on alterations within the political setting and in accordance with the power of alternative lobbies and curiosity groups.

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We refer to agencies which provide advice freely. Therefore, consulting firms which charge for their services should be excluded. Introduction 33 95. Organised or supported by international agencies 96. Others (specify) . iii.. What was the nature of support provided by the agency or programme? 97. It had simplified application procedure or fast processing of applications 98. It provided advice and information on some aspect of the business (listed below) - circle any relevant answer) . 99. How to set up business 100.

Czech Republic 1 2 3 4 5 337. Hungary 2 3 4 5 338. Lithuania 1 2 3 4 5 339. Poland 1 2 3 4 5 v. Are there anything that the govermnent can do to further improve the conditions for foreign investors and joint ventures? 340 Yes. 341. No. If yes, please explain Date: Name of the Interviewer. 46 Barriers to Entry in Early Transition ENDNOTES We wish to thank all friends and colleagues who contributed to this project since its inception. The research team in each of five countries consisted of many people who participated in the collection and processing of data and other tasks.

Please indicate the value of your liabilities at the end of 1995? 261. Total liabilities (local currency) 262. Government debt 263. Tax 264. Social and Health Insurance 265. Customs 266. Others (specify) 267. Debt to suppliers 268. Bank debt 269. Can't divulge the bank debt, it is confidential vii. What is the expected % increase in prices of your products/services in the next 6 months? % F. Environment and Competitive Conditions i. Please evaluate the following, using a 1-5 scale (WITH 1- VERY POOR; 2POOR; 3- SATISFACTORY; 4-GOOD; 5- VERY GOOD).

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