Gaps in the legislation of South Ossetia impede the full development of small and medium enterprises in the country, expressed his opinion a Chairman of Commerce and Industry (CCI) of the RSO Roin Kozaev in an interview with the news agency "Res."
He has noted that imperfection of the laws also affect the activity of foreign investors who are theoretically willing to invest in the development of the economy of South Ossetia.
"We receive a lot of proposals about starting a business in the territory of South Ossetia. But we’re not quite ready to accept them. For example, it is a problem for manufacturers even to register their trademark. "- said Kozaev.
However, he has added, investors come to South Ossetia to become familiar on the spot with the terms of setting up their business.
"Recently we have received representatives of the transport company from Pyatigorsk. They made proposals for the production of drinking water, the high-quality alcoholic beverages. All this in reality would give us a minimum of additional jobs. Investors discuss their proposals with the leadership of the Republic, but the investment climate is unfavorable so far, because of the above obstacles, "- stressed the CCI Chairman.
Kozaev considers the only effective measure for the development of business activity in the Republic the financial support of entrepreneurs by the government.
"Despite the sparing tax system in the Republic, the support of the government is necessary for steady business development. It is not the time to demand a large package of documents for registration of entrepreneurs and their business, "- said Kozaev.
He also pointed to the unprofitability of the state-owned enterprises, noting that it would be better to privatize them.
"A lot of the state-owned enterprises are unprofitable; some have ceased to function after 2008. They could provide a stable income in the case of privatization. "- concluded Kozaev.
