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Evaluation of business environment factors in the Kaunas region

Summary/Abstract: Favourable business environment is one the main conditions for successful business development. In this article the problem of business development in the region is analysed; the problem is analysed by evaluating business environment conditions in the region. Research object is business environment. The aim of the research is to evaluate factors and conditions of business environment in Kaunas region. Research tasks are to: determine the main assumptions of business development• success in the region; evaluate the most impeding factors of business• development in the region; settle the main business development institution in the• region and the quality of their activities; determine if businessmen are willing to shift their• business to different location. The survey was conducted using questionnaires. The questionnaire survey involved description of the survey methodology, gathering of responses to the questionnaire, and processing and analysis of the information gathered. The gathered data during the survey were processed using mathematical and statistical methods. After the analysis of the research data was made, it was estimated that organizations of almost all economic activity fields think that business success depends mostly on the businessmen themselves. Only public organizations from the field of education, health care, social care and public administration thin that the success of their activity is mainly determined by other factors, such as overall economic situation, decisions made by the government and municipality. Analysis of business impeding factors revealed that there are not any factors that restrict business development in the region considerably. The tax rate, corruption and frequent changes in legislation are among quite restrictive factors. The following factors are among slightly restrictive ones: undeveloped infrastructure, poor access to bank financing, procedures when establishing a new organization, order of issuing licenses and permissions and shortage of qualified labour force. Business development in the region is not impeded by the shortage of land, natural resources or business premises. Valuation of services necessary to business shows that quality of services provided by public entities is valued as very poor. Separate valuation of municipal departments that are responsible for business support and the quality of their services are valued as poor, too. Services provided by science and technology parks, universities (laboratories, research centres), business information centres and business incubators are valued as quite good. Any business services were evaluated as of very good quality. Organizations apply business information centres for business support most often, and services of these centres are valued as quite good. Quite opposite situation is with the services of municipal departments: they are in the second place by application popularity, but the quality of the services is valued as poor. Though organizations rarely apply for services to science and technology parks and business incubators, their services are valued as of good quality. The most of organizations in Kaunas region would stay in the same location, even if better business conditions were in other regions. It means that companies are not willing to change the territory of their activities.

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