Majority of businesses (76%) surveyed by the Institute of Economic Affairs 2021 Business Confidence Survey say they do not expect much change in their business performance in the next six months.
A significant number of businesses (71%) are however expecting a better business performance.
The survey sampled 200 Business Executives, but got a response from 157 of them, approximately 78.5 percent. It sought views of business executives or owners on business performance, business environment, business constraints and desired policy interventions
Majority of businesses (68%) reported no change in performance during the last six months. It was followed by those (55%) that experienced worse performance.
With regard to the business areas whose operations were largely affected in the last six months, the business executives said cost of operations have mostly increased, but Covid-19 related expenditure has largely reduced.
For expectations about the areas of business in the next six months, the businesses said profits will most increase, whilst Covid-19 related expenditure will most reduce.
On macroeconomic expectations in the next six months, the businesses said economic growth will mostly increase, whilst inflation reduces.
About assessment of the business environment in the last six months, 64% of the businesses said they expect no change.
The most important constraints facing businesses were high utility charges, high government taxes and charges and high rate of public corruption.
In terms of critical interventions from government to improve the business environment, majority of the businesses called for reduction in government taxes and charges as well as reduce the macroeconomic environment.
The businesses sampled were largely retail and wholesale trade. In terms of their ages, there were between 4 and 10 year old
The survey was conducted between July and September 2021.
The IEA said results will be used to formulate recommendations that will be disseminated to policy makers and relevant stakeholders and backed by advocacy to push for their implementation.