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The Mogilev Entrepreneurs Regard Business Associations as the Key Mechanism For Protecting Their Rights The association of entrepreneurs which was registered in October 2003 in the Mogilev region has become a counterpart of the International Finance Corporation Project «Development of Small and Medium Business Associations in Belarus». At present the members of the association are more than thirty managers of private enterprises, leaders of non–governmental organizations and individual entrepreneurs. The major objective of the association is to build up friendly environment for the efficient development of business in the Mogilev region and to coordinate the efforts of entrepreneurs in protecting their economic interests. The new association provides a wide range of services to entrepreneurs including information support and legal advice. The association members can participate in workshops and trainings and can get assistance in searching for business partners in Belarus and in foreign countries. The association is led by Anatoly Zhigalov, winner of the contest «Best Entrepreneur in 2003». Since last autumn the association has been publishing «Business Bulletin» which has become very popular in the regional business community. In March 2004 the association established «hotline» offering services of a professional lawyer. In late 2003 — early 2004 the association jointly with the International Finance Corporation (IFC) conducted a survey of the entrepreneurs in Mogilev and the Mogilev region (covering 152 respondents) to study collaboration of the entrepreneurs of the Mogilev region with business support centers and business associations and to identify the range of services which the entrepreneurs would like to get from business associations. The findings of the survey suggest that the key problems facing entrepreneurs in the Mogilev region are high tax burden and low incomes of customers limiting their ability to pay for goods and services. The respondents indicated frequent changes in the legislation and complexity of tax regulations as the major business impediment. The majority of the respondents support the need for active position with regard to collaboration with the authorities: 45% of entrepreneurs regard nomination of their representatives to local authorities as the efficient mechanism of protecting their interests, about 40% of the respondents indicated participation in the official groups, committees and commissions and more than 20% prefer to establish informal contacts with the officials. 96% of entrepreneurs believe that there's a need to protect their interests before the government. 81% of respondents are ready to join the union of entrepreneurs to be able to protect their rights. 64% of respondents believe that the key role of the unions of entrepreneurs is to lobby the interests of small and medium business with the authorities rather than to provide services. At the same time entrepreneurs also would like business associations to strengthen their capacity in promoting public image of entrepreneurs, establishing collaboration between small business and larger enterprises, assisting entrepreneurs in getting access to loans and developing international cooperation. The collaboration experience of the entrepreneurs of the Mogilev region with business support centers and business association is very limited. 59% of entrepreneurs have never approached them for services and only 7% of respondents seek for their services on a regular basis. 11% have no idea about business associations. 22% of entrepreneurs having the experience of approaching the associations for a couple of times have not used the services due to non–availability of the relevant specialist (29 %), high prices (28 %) and low quality (26 %). The most appropriate services indicated by the entrepreneurs are legal support to business (61 %), market search (43 %) and consultative services on taxation rules (41 %). The survey has thus demonstrated that business community in the Mogilev region regard business associations as the key mechanism for protecting their rights and important linkage in collaborating with the authorities. Based on the survey findings, the executive managers of the new business association have developed the strategic development plan which is expected to help the Mogilev association to play and important role in supporting and strengthening small business. Nadezhda SINELNIK, IFC Public Relations Manager in Belarus
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