THE GLOBAL CRISIS AND RETAILERS:THE OBSTACLES

Abstract

Abstract In this study, we examine whether retailers in Eastern Europe and Central Asia found corruption, courts, tax administration, tax rates, political instability, and business licensing/permits as an obstacle to their firm. We focus on a specific period when retailers all around the world suffered in terms of revenues and profits. This is the period surrounding the 2008-2009 global crisis. We first examine the degree to which retailers see each of these factors as an obstacle in the pre-crisis period. Were they seeing each of these factors as a minor, moderate, major, or very severe obstacle, or were they seeing them as no obstacle? Then, we compare our findings to our findings in the post-crisis period. Had their perceptions improved or worsened after the crisis ended? We expect to see improvements in each of these areas due to governments’ efforts to lessen the burden on retailers. Our results show that retailers’ perceptions of all six factors had improved post-crisis. These findings confirm that, overall, governments were successful in reducing the burdens on retailers.

Keywords

• retailer
• obstacle
• crisis
• entrepreneur
• entrepreneurship
• small business