Gender Equality National Report Hungary - European-microfinance ...

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Country Chart No. 2: Factors describing entrepreneurial culture in some countries and groups of countries, 2004-2005 Enterprise - Good career Enterprise – high status Positive news of the media The culture supports The culture emphasizes autonomy The culture supports risk taking The culture supports creativity The culture supports individual self-care The proportion of affirmative Experts‘ opinions on the 5-grade Likert-scale, where one could answers in percentage of replies rank between 1: „not at all“ and 5: „to a maximum extent“ Hungary 45.51 45.79 27.73 2.42 2.33 2.41 3.01 2.84 USA 58.66 61.77 61.16 4.66 4.47 4.36 4.33 4.34 Europe 59,27 67,56 53,52 2,75 2,86 2,37 2,83 2,82 Latin-America Australia/ 74,89 72,41 68,95 2,68 2,60 2,14 2,41 2,60 New-Zealand 58,16 70,44 67,23 2,98 3,16 2,74 3,30 3,16 Asia developed 42,05 57,21 61,84 3,17 2,74 2,33 2,53 2,66 Asia developing 78,22 76,65 68,14 3,65 3,29 2,79 3,12 3,02 Other 71,27 72,95 67,76 3,39 3,33 3,09 3,43 3,08 Average 61,91 68,34 59,01 2,95 2,95 2,50 2,91 2,89 The bankruptcy wave of the mid-90s and today makes a lot of people realize that being an entrepreneur bears great risks, and this may deter many from starting an enterprise. 3.2.4. Policy Incentives for Entrepreneurship Score 2.0 Entrepreneurs in Hungary consider administrational expenses as one of the biggest encumbrances in their development. According to the ranking assessed in Doing Business, assembled and annually published by the World Bank on the basis of the 10 main dimensions characterizing the business environment, Hungary ranks 55th among the examined 155 countries; this implies that it precedes only Poland and Slovenia from the Central Eastern European countries that joined the EU in 2004. Although Hungary still has an advantage in some areas (e.g. in the financial brokerage system) obtained in the 1990s, in total the survey shows that today it only belongs to the region’s mainstream. Among the ten indicators the country displays a big disadvantage in the licensing process of new developments (ranking 119th), in addition, it is long and (more and more) expensive to register property ownership. Taxes to be paid by enterprises are high (56.8% of gross profit), and a remarkably large amount of resources are used for administrational activities and related tax payments (ranking 98th in the world in total). The protection of (minority) investors is not strong either (ranking 84th), the indicators of hiring and firing workers and the rigidity of working hours has asimilarly bad ranking. According to data from the World Bank, the 6 procedures needed for starting a business rank Hungary in the mainstream of EU countries. On the other hand it takes 38 days to start a business in Hungary, the costs of the procedures and the minimal capital required to build a foundation are high. Similarly unfavourable indicators are the conditions for closing a business in Hungary (capital regrouping index): instead of approximately one year as it takes in most European countries, it takes 2 years in Hungary. Closing a business in Hungary is costly, and the capital recoverable from insolvent firms is only a fraction of the claimed amount. 22
Chart No. 3: Circumstances of starting a business Administrative procedures needed Time needed Costs Minimal capital needed number days GNI per capita (%) Europe and Central 9 Asia 36 13,5 49,1 OECD 6 19 6,5 28,9 Hungary 6 38 22,4 79,6 Circumstances of closing a business Time needed Costs Recovery rate year in percentage of property value % Europe and Central 3,5 Asia 14,0 29,8 OECD 1,5 7,6 73,5 Hungary 2,0 14,0 35,8 Source: the World Bank, Doing Business, http://www.doingbusiness.org/ “According to the assessment by the World Bank, in the past year the only notable improvements made are in terms of the time needed to start a business (38 days in 2006) and the costs per income.” (Economic Developmant Operational Programme (GOP) 02.07.2007) The following table highlights the weaknesses of the Hungarian bankruptcy law as well as the main procedural and administrative bottlenecks in the bankruptcy process. The recovery rate expresses how many cents on the dollar claimants recover from the insolvent firms. Chart No. 4: Indicator Hungary Region OECD Time (years) 2.0 3.5 1.4 Cost (% of estate) 14.5 14.3 7.1 Recovery rate (cents on the dollar) 39.7 29.5 74.0 “The domestic enterprises are unsatisfied with the business environment too” According to the regular survey of the Ministry of Economy and Transport, the business environment is criticized by the enterprises themselves, firstly because of the high transaction expenses and administrative burdens, but also because of the unpredictability of the economic regulation and the problems of SME finance that create a disadvantage in competitiveness. It increases relative labour costs so that the contributions to be paid are higher than those in the other countries of Central Eastern Europe. The high rate of taxes and contributions lead both the businesses and the population towards the grey economy. Although there have been steps taken to resolve this matter, the administrative duties of businesses are still unreasonable and public administration procedures are too long„ (GOP 02.07.2007.) On October 17th, 2006 The Ministry of Economy and Transport (MoET) - realizing how serious the situation was - launched a program to ease the administrative burdens. The aim 23
Page 3 and 4: Fostering Gender Equality: Meeting
Page 5 and 6: Executive Summary 1 Women represent
Page 7 and 8: From the beginning the LEA Network
Page 9 and 10: 1. Introduction 1.1. Project Backgr
Page 11 and 12: Gender Equality - This term refers
Page 13 and 14: 3. ScoreCard 3.1. ScoreCard Diagram
Page 15 and 16: A private entrepreneur may only hav
Page 17 and 18: For a new enterprise the Hungarian
Page 19 and 20: programs. In most of the cases the
Page 21: A recent study examined opinions of
Page 25 and 26: On September 1st, 2007 the amendmen
Page 27 and 28: In 2006 the county employment centr
Page 29 and 30: a) Chart No. 6: Loans to micro-ente
Page 31 and 32: Chart No.7: Years 1992 1993 1994 19
Page 33 and 34: Equal chances schemes at the workpl
Page 35 and 36: Chart No. 8: Economic participation
Page 37 and 38: In 2003 the proportion of women wit
Page 39 and 40: Diagram No. 3: Unemployment rates:
Page 41 and 42: Our lag in part-time employment is
Page 43 and 44: Absence from the labour market due
Page 45 and 46: Providing day care for young childr
Page 47 and 48: women 1 725.70 115.3 1 841.00 42.3
Page 49 and 50: Diagram No. 11: Unemployment rates
Page 51 and 52: oles have been over- and rewritten.
Page 53 and 54: Diagram No. 12: Average annual grow
Page 55 and 56: men.” 35 The long-term full emplo
Page 57 and 58: In the framework of the 2nd Nationa
Page 59 and 60: The e-NIVO program plans to be main
Page 61 and 62: Diagram No. 15: Willingness to invo
Page 63 and 64: The experimental micro-credit progr
Page 65 and 66: The LEA network has developed its i
Page 67 and 68: 4.2. Recommendations Women’s ente
Page 69 and 70: 5. Sources Global Gender Gap Riport
Page 71: 6. Experts and associates who helpe

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