SME employers’ expectations that the business environment will improve haven’t been meet. More than 3 000 small companies were closed last year owing to the drop in the incomes from sales, said the chairman of the Small Business Association Eugen Roscovanu, deputy head of the National Employers Confederation of Moldova. Contacted by Info-Prim Neo, Eugen Roscovanu said the production does not develop and over 40% of the business represents retain and wholesale trade, while processing industry makes up only 10%. The share of the SMEs in the GDP decreased significantly even compared with 2006, which is a result of the monopolization of the economy and of disloyal competition. The income tax of 12% introduced this year will continue this process, including the development of the underground economy. “The payment of the sickness benefit by the employers will have a very negative impact on the business environment. The regulation policy got stuck in the bureaucratic initiatives of the ministries and departments. The businesspeople will adapt to the aggressive conditions in the economy, but we can hardly hope for a rise in the number of workplaces. Everybody expects stimulatory policies. The businessmen live with this,” said Eugen Roscovanu. According to him, the multiple inspections carried out, even 2-3 times a week, accompanied by large fines, the impoverishment of the population and the decrease in purchasing power lead to the small companies’ bankruptcy. More than 45,000 SMEs present reports. About 30% of the registered SMEs do not yet work. “There are 76 740 limited liability companies, but their work is not felt in the economy. In January-November 2010, there were registered 5 920 companies, while in the same period of 2011 the number of registered companies was 6160. These are large, impressive figures, but the number of workplaces is comparatively low and insignificant for society. The people leave the registered companies and go to do unskilled work abroad,” said Eugen Roscovanu. He also said that the profitability of the SMEs in Moldova is very low. The market is small, there is monopoly and aggressive underground monopoly controlled by groups of interests. There is no advanced management and the institutions with coercive right exert pressure. As a result, the private initiative is blocked. The SMEs in the EU benefit from informational, consultative and financial support and this enables them to be profitable and to create new workplaces. In order to increase profitability, the businesspeople must feel the legal protection and not be permanently afraid of inspections. Eugen Roscovanu also said that positive prospects are there where the opinion of civil society is taken into account and the public-private dialogue is one of the instruments of the social and economic progress. Moldova has prospects, but they must be treated with perspicacity and interest for the economy, not personal selfish interest.