Evaluating impact of enforcement and inspections on business activity

Yelena Dobrolyubova, Natalia Zybunovskaya, Andrei Pokida and Vladimir Yuzhakov

Public administration issues, 2017, issue 2, 7-25

Abstract: How do businesses perceive the impact of state supervision and inspection on business activities? Do business inspections help to minimize risks arising from business operations (i.e. risks of damage to public safety, health, etc.)? What are the administrative costs which businesses have to bear because of the business inspections?To address these issues, in 2017 RANEPA conducted a representative sociological survey of private businesses (mostly SMEs, including individual entrepreneurs) in 28 Russian regions. The survey results are presented in the article. The sample included 1000 respondents; the statistical error accounts for 3.1 percent.The survey results demonstrate that overall perception of business inspections on the part of the business community is neutral. However, in most cases the respondents reported that the latest inspection had not resulted in any improvements in safety and quality of the products or safety of business processes.Administrative costs of business inspections are allocated unevenly among businesses of different sizes and from different sectors. Over 40 percent of respondents bear administrative costs related to access to legislative norms which are the subject of the business inspections. In addition, the survey revealed significant frequency of informal payments related to business inspections.The survey data suggest that currently the effectiveness of business inspections is insufficient. The control and oversight activities are not oriented at minimizing risks to the public. Therefore, the business inspections reform is needed.

Keywords: administrative costs; safety of products; safety of production process; enforcement and inspection activity; control and oversight (supervision); small businesses; performance evaluation; inspections; business climate; risk of damage; Russia; enterprise sociological survey (search for similar items in EconPapers)
Date: 2017
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Citations: View citations in EconPapers (2)

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