The Slovenia Times

Small Businesses Expect New Govt to Launch Investment Cycle


Since the start of the crisis, over 12,000 small businesses have closed, leaving 35,000 people jobless, the head of the employers' association, Milan Škapin, said.

While saying that the situation was improving somewhat in the construction sector, Škapin noted that problems were staring to mount in the haulage and hospitality sectors. He added that recently the problems had been further deepened by the political crisis.

Given the current uncertainty on the labour market, the number of unemployed is expected to go up by the end of the year, while a modest recovery is expected only in 2014, which the labour market will not feel until 2015, according to Škapin.

The employers' association was also critical of the recently introduced government measures, including the changes to the labour market legislation, which they believe will not boost employment.

Škapin expects the new government to launch the investment cycle, introduce a stimulative tax policy, cut red tape and facilitate the phasing of EU funds. It should also promote economic diplomacy to increase exports.

Helena Kamnar, the Slovenian president's adviser for economic and social policies, pointed out that trade craft and small business were crucial for economic recovery due to their ability to adjust to the changes on the market.

This is why Europe is building its recovery strategy mostly on micro and small companies, she said.

In Slovenia, only 6% of all active population is employed in this sector, which is below Europe's average.

While there was a positive trend in this area before the crisis, entrepreneurial activity almost halved between 2008 and 2011, Kamnar noted.

The reasons why people are closing their businesses in Slovenia are different than elsewhere in Europe, where companies are shut down due to lack of profitability. Here, the main reason is finances, as the state support to the sector is too weak, she believes.

"Hopefully, additional measures by the new government and possibly the central bank will change things in this area," Kamnar said.


More from Nekategorizirano