55% of businesses experience worse performance in the last 6 months – IEA Business Confidence Survey
Fifty-five percent (55%) of businesses in the country according to the Institute of Economic Affairs 2021 Business Confidence Survey experienced their worse performance in the last six months.
This is followed by the majority of businesses (68%) that reported no change [negative or positive change] in their performance during the last six months.
High cost of operations among other factors as revealed by the survey occasioned the worse performance of businesses.
The most important constraints facing businesses were high utility charges, high government taxes and charges and high rate of public corruption.
Per the survey, some seventy-one percent (71%) of businesses in the country say they are expecting a better business performance in the next six months.
Business expectations in the next six months are that profits will mostly increase, whilst Covid-19 related expenditure incurred by businesses will mostly reduce.
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On macroeconomic expectations in the next six months, businesses said economic growth will mostly increase, whilst inflation reduces.
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 an improvement in the macroeconomic environment.
The 2021 Business Confidence Survey by the IEA survey sampled 200 Business Executives, but got a response from 157 of them, approximately 78.5 percent.
The IEA sought views of business executives or owners on business performance, business environment, business constraints and desired policy interventions.
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.
