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It is harder to start a small business in Moldova than in EU, “Expert-Grup”


https://www.ipn.md/en/it-is-harder-to-start-a-small-business-in-moldova-7966_1080584.html

In Moldova, there is no facilitated fiscal policy to support companies by the state during the first years of activity. The conditions of starting and running a small business are more difficult than in the EU and the countries of the region. This makes the development of businesses, especially by women, more difficult.  By the competitiveness index, according to the report for 2019, the national economy ranks 86th out of 141, Sergiu Gaibu, programs director at the Independent Think Tank “Expert-Grup”, stated in a roundtable meeting centering on the assessment of the impact of support programs for economic empowerment, IPN reports.

Sergiu Gaibu said the underdevelopment of the rural areas and the absence of other works than the agricultural ones are a significant limitation for the support programs for the women’s economic empowerment. The lack of appropriate infrastructure and of equipment for mechanizing work limits access and the interest of women in taking part in agricultural activities or starting an agribusiness.

Also, the state does not provide financial instruments for start-ups, microenterprises and family businesses, while the resources of implementers for starting a business are limited. The vocational schools have an outdated curriculum and there is bureaucratic rigidity to adjusting this. The lack of appropriate infrastructure is another impediment to the delivery of assistance. There were cases when the lack of connection to the power supply made the holding of online courses impossible, said the expert of “Expert-Grup”.

At the same time, the women from vulnerable groups do not trust the own forces and do not have elementary knowledge. About 30% of the vulnerable girls and women have a low level of education and they are ashamed as they lack basic knowledge.

To solve the given problems, “Expert-Grup” recommends the Government to create a simplified normative framework for small and medium-sized enterprises and to expand the tax concessions for persons who maintain children. The quota of 20% of the current personal exemption is too small. In Germany, this indicator is of 70%, stated Sergiu Gaibu.

“Expert-Grup” suggests eliminating the Soviet requirements with regard to private kindergartens and working out a set of simplified requirements for family-type kindergartens with at 15-20 children, medium-sized and large kindergartens. The requirements should be formulated so that they could be also be met in villages. “Expert-Grup” also recommends introducing career guidance and professional orientation courses for ninth graders, organizing visits for students to different enterprises and promoting dual education.