REGIONAL SURVEY 2010: CURRENT ECONOMIC TRENDS
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BDO Regional Survey 2010: Current economic trends
CONTENTS FOREWORD RESEARCH METHODOLOGY SURVEY RESULTS ROMANIA Own company Revenues Profit Number of clients Access to funding Overall spending and costs Bad Debts Investments in personnel training Employee remuneration & benefits Personnel turnover Employee satisfaction Staff headcount National economic environment Unemployment GDP Foreign direct investments Inflation VAT Overall indicators compared to median value Own company National economic environment Time to return to pre-crisis levels
3 4 5 5 5 6 6 7 7 8 8 9 9 10 10 11 11 12 12 13 14 15
REGION Own Company Revenues Profit Number of clients Access to funding Overall spending & costs Bad debts Investments in personnel training & development Employee remuneration & benefits Personnel turnover Employee satisfaction Staff headcount National Economic Environment Unemployment GDP Foreign Direct Investments Inflation VAT Time to return to pre-crisis levels Regional sample characteristics Main field of activity Company size (no of employees) Company turnover (Euro)
16 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35
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BDO Regional Survey 2010: Current economic trends
FOREWORD Developments over the recent period have reinforced the importance of rapid and effective policy responses to economic crises. This survey should be seen in relation to the increased need for information, which becomes critical in the current highly uncertain environment. By focusing on regional economic trends, this report provides a quick and up-to-date overview of the actual conditions and expectations on key business and economic indicators in each participating country. This “Current Economic Trends� survey is not about predicting the future! Nonetheless, it aims to provide a close observation of the market, in order to enhance the understanding of the existing trends in our regional economic environment. Survey topics include the opinions of key decision makers from respondent companies on both their own businesses and on the current market conditions and trends in their national economies, for the coming period. Since this research is our first attempt at organising such a large scale survey in our region, there are no historical data for comparison; the survey is expected to be conducted annually. Our appreciation goes to all respondents who invested time in sharing with us their thoughts, making it possible for us to release this report.
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BDO Regional Survey 2010: Current economic trends
RESEARCH METHODOLOGY Background In order to have an updated view on the current trends in the economic and business environment, a survey regarding important related issues was launched amongst BDO domestic and foreign clients. The survey involved 8 countries and was run by each local BDO office from: Bulgaria, Croatia, Greece, Hungary, Romania, Serbia, Slovenia and Turkey. Research method The research was conducted by way of a B2B web-based questionnaire Survey (Computer Assisted Web Interview). The questionnaire had 17 questions, all with predetermined answers. The main topics of the survey referred to changes expected in the coming year, regarding economic growth, expenditures, local investments, access to funding, staff structure & size. All the figures from this report are rounded to the nearest value starting with the second decimal. There were no personal information required, however the respondents had to input data regarding the company size (in terms of employees and turnover) and the main field of activity. The questionnaire was accessible via Internet, in both English and the local language and was identical in all eight countries. The entire methodology ensures the harmonisation of data, and was designed so as to allow direct comparisons of business expectations across different countries and also with the entire region. Target population This report was based on responses received from the representatives of 450 companies. Senior financial managers, general managers or key decision makers were asked to share their thoughts on future business conditions. Fieldwork All the data were collected in October 2010. The survey will continue on an annual basis, in order to offer chronological comparisons.
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BDO Regional Survey 2010: Current economic trends
SURVEY RESULTS: CROATIA Looking at your own company business prospects for the next 12 months, would you anticipate an overall increase or decrease for the following topics? Will decrease a lot
Will decrease
Will increase
Will increase a lot
Will decrease a lot
Will decrease
Will increase
Will increase a lot
HR
REVENUES REG
HR
PROFIT REG
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BDO Regional Survey 2010: Current economic trends
Looking at your own company business prospects for the next 12 months, would you anticipate an overall increase or decrease for the following topics?
Will decrease a lot
Will decrease
Will increase
Will increase a lot
Will decrease a lot
Will decrease
Will increase
Will increase a lot
HR
NUMBER OF CLIENTS REG
HR
ACCESS TO FUNDING REG
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BDO Regional Survey 2010: Current economic trends
Looking at your own company business prospects for the next 12 months, would you anticipate an overall increase or decrease for the following topics?
Will decrease a lot
Will decrease
Will increase
Will increase a lot
Will decrease a lot
Will decrease
Will increase
Will increase a lot
HR
OVERALL SPENDINGS & COSTS REG
HR
BAD DEBTS REG
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BDO Regional Survey 2010: Current economic trends
Looking at your own company business prospects for the next 12 months, would you anticipate an overall increase or decrease for the following topics?
INVESTMENTS IN PERSONNEL TRAINING & DEVELOPMENT
Will decrease a lot
Will decrease
Will increase
Will increase a lot
Will decrease a lot
Will decrease
Will increase
Will increase a lot
HR
REG
HR
EMPLOYEE REMUNERATION & BENEFITS REG
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BDO Regional Survey 2010: Current economic trends
Looking at your own company business prospects for the next 12 months, would you anticipate an overall increase or decrease for the following topics?
Will decrease a lot
Will decrease
Will increase
Will increase a lot
Will decrease a lot
Will decrease
Will increase
Will increase a lot
HR
PERSONNEL TURNOVER REG
EMPLOYEE SATISFACTION
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BDO Regional Survey 2010: Current economic trends
Looking at your own company business prospects for the next 12 months, would you anticipate an overall increase or decrease for the following topics? Will decrease a lot
Will decrease
Will increase
Will increase a lot
STAFF HEADCOUNT
Looking at your national business environment prospects for the next 12 months, would you anticipate an overall increase or decrease for the following topics?
GR
UNEMPLOYMENT
REG
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BDO Regional Survey 2010: Current economic trends
Looking at your national business environment prospects for the next 12 months, would you anticipate an overall increase or decrease for the following topics?
HR
GDP REG
FOREIGN DIRECT INVESTMENTS
HR
REG
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BDO Regional Survey 2010: Current economic trends
Looking at your national business environment prospects for the next 12 months, would you anticipate an overall increase or decrease for the following topics?
INFLATION
VAT
HR
REG
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BDO Regional Survey 2010: Current economic trends
OVERALL INDICATORS COMPARED TO MEDIAN VALUE
OWN COMPANY
HR REG
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BDO Regional Survey 2010: Current economic trends
OVERALL INDICATORS COMPARED TO MEDIAN VALUE
NATIONAL ECONOMIC ENVIRONMENT
HR REG
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BDO Regional Survey 2010: Current economic trends
When do you expect your company’s revenue growth to return to pre-crisis levels (before 2008)?
HR REG
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BDO Regional Survey 2010: Current economic trends
SURVEY RESULTS: REGION Looking at your own company business prospects for the next 12 months, would you anticipate an overall increase or decrease for:
REVENUES
Will decrease a lot
Will decrease a lot
Will decrease
Will increase
Will decrease
Will remain the same
Will increase a lot
Will increase
Will increase a lot
*compared to regional average value (3.19)
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BDO Regional Survey 2010: Current economic trends
Looking at your own company business prospects for the next 12 months, would you anticipate an overall increase or decrease for:
PROFIT
Will decrease a lot
Will decrease a lot
Will decrease
Will increase
Will decrease
Will remain the same
Will increase a lot
Will increase
Will increase a lot
*compared to regional average value (2.99)
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BDO Regional Survey 2010: Current economic trends
Looking at your own company business prospects for the next 12 months, would you anticipate an overall increase or decrease for:
NUMBER OF CLIENTS
Will decrease a lot
Will decrease a lot
Will decrease
Will increase
Will decrease
Will remain the same
Will increase a lot
Will increase
Will increase a lot
*compared to regional average value (3.11)
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BDO Regional Survey 2010: Current economic trends
Looking at your own company business prospects for the next 12 months, would you anticipate an overall increase or decrease for:
ACCESS TO FUNDING
Will decrease a lot
Will decrease a lot
Will decrease
Will increase
Will decrease
Will remain the same
Will increase a lot
Will increase
Will increase a lot
*compared to regional average value (2.89)
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BDO Regional Survey 2010: Current economic trends
Looking at your own company business prospects for the next 12 months, would you anticipate an overall increase or decrease for:
OVERALL SPENDINGS & COSTS
Will decrease a lot
Will decrease a lot
Will decrease
Will increase
Will decrease
Will remain the same
Will increase a lot
Will increase
Will increase a lot
*compared to regional average value (3.09)
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BDO Regional Survey 2010: Current economic trends
Looking at your own company business prospects for the next 12 months, would you anticipate an overall increase or decrease for:
BAD DEBTS
Will decrease a lot
Will decrease a lot
Will decrease
Will increase
Will decrease
Will remain the same
Will increase a lot
Will increase
Will increase a lot
*compared to regional average value (3.13)
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BDO Regional Survey 2010: Current economic trends
Looking at your own company business prospects for the next 12 months, would you anticipate an overall increase or decrease for:
INVESTMENTS IN PERSONNEL TRAINING
Will decrease a lot
Will decrease a lot
Will decrease
Will increase
Will decrease
Will remain the same
Will increase a lot
Will increase
Will increase a lot
*compared to regional average value (2.92)
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BDO Regional Survey 2010: Current economic trends
Looking at your own company business prospects for the next 12 months, would you anticipate an overall increase or decrease for:
EMPLOYEE REMUNERATION & BENEFITS
Will decrease a lot
Will decrease a lot
Will decrease
Will increase
Will decrease
Will remain the same
Will increase a lot
Will increase
Will increase a lot
*compared to regional average value (3.01)
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BDO Regional Survey 2010: Current economic trends
Looking at your own company business prospects for the next 12 months, would you anticipate an overall increase or decrease for:
PERSONNEL TURNOVER
Will decrease a lot
Will decrease a lot
Will decrease
Will increase
Will decrease
Will remain the same
Will increase a lot
Will increase
Will increase a lot
*compared to regional average value (2.95)
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BDO Regional Survey 2010: Current economic trends
Looking at your own company business prospects for the next 12 months, would you anticipate an overall increase or decrease for:
EMPLOYEE SATISFACTION
Will decrease a lot
Will decrease a lot
Will decrease
Will increase
Will decrease
Will remain the same
Will increase a lot
Will increase
Will increase a lot
*compared to regional average value (2.84)
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BDO Regional Survey 2010: Current economic trends
Looking at your own company business prospects for the next 12 months, would you anticipate an overall increase or decrease for:
STAFF HEADCOUNT
Will decrease a lot
Will decrease a lot
Will decrease
Will increase
Will decrease
Will remain the same
Will increase a lot
Will increase
Will increase a lot
*compared to regional average value (2.91)
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BDO Regional Survey 2010: Current economic trends
Looking at your national business environment prospects for the next 12 months, would you anticipate an overall increase or decrease for:
UNEMPLOYMENT
Will decrease
Will decrease
Will increase
Will remain the same
Will increase
*compared to regional average value (2.36)
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BDO Regional Survey 2010: Current economic trends
Looking at your national business environment prospects for the next 12 months, would you anticipate an overall increase or decrease for:
GDP
Will decrease
Will remain the same
Will decrease
Will increase
Will increase
*compared to regional average value (1.85)
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BDO Regional Survey 2010: Current economic trends
Looking at your national business environment prospects for the next 12 months, would you anticipate an overall increase or decrease for:
FOREIGN DIRECT INVESTMENTS
Will decrease
Will decrease
Will remain the same
Will increase
Will increase
*compared to regional average value (1.83)
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BDO Regional Survey 2010: Current economic trends
Looking at your national business environment prospects for the next 12 months, would you anticipate an overall increase or decrease for:
INFLATION
Will decrease
Will decrease
Will increase
Will remain the same
Will increase
*compared to regional average value (2.37)
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BDO Regional Survey 2010: Current economic trends
Looking at your national business environment prospects for the next 12 months, would you anticipate an overall increase or decrease for:
VAT
Will decrease
Will decrease
Will increase
Will remain the same
Will increase
*compared to regional average value (2.09)
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BDO Regional Survey 2010: Current economic trends
When do you expect your company’s revenue growth to return to pre-crisis levels (before 2008)?
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BDO Regional Survey 2010: Current economic trends
REGIONAL SAMPLE CHARACTERISTICS INDUSTRY SECTORS
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BDO Regional Survey 2010: Current economic trends
REGIONAL SAMPLE CHARACTERISTICS COMPANY SIZE (NO. OF EMPLOYEES)
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BDO Regional Survey 2010: Current economic trends
COMPANY TURNOVER (EURO)
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TURKEY BDO DENET +9021 2275 9690
This publication has been carefully prepared, but it has been written in general terms and should be seen as broad guidance only. The publication cannot be relied upon to cover specific situations and you should not act, or refrain from acting, upon the information contained therein without obtaining specific professional advice. Please contact your BDO local office to discuss these matters in the context of your particular circumstances. BDO, its partners, employees and agents do not accept or assume any liability or duty of care for any loss arising from any action taken or not taken by anyone in reliance on the information in this publication or for any decision based on it. This report cannot be use for predicting turning points in economic cycles: there is no guarantee for the national/regional representativeness of collected data. All rights reserved. No part of this publication may be reproduced, stored in a retrieval system or transmitted in any form or by any means, electronic, mechanical, photocopying, recording or otherwise, without the written prior permission of the publisher. Each BDO local office is a member of BDO International Limited, a UK company limited by guarantee, and forms part of the international BDO network of independent member firms. BDO is the brand name of the BDO network and for each of the BDO Member Firms.