64% of Businessmen Faced Contractors’ Bad Practices
Entrepreneurs spoke about the unfair behaviour of their counterparties
For the last 6 months 28% of the research participants have faced bad practices and fraud of their contractors, at the same time 12% believe, that the number of such cases has grown.
The most typical situations refer to the payments for the ordered products and services. 54% of the respondents mentioned the extended delays, 44% - refusal to pay for the delivered products / provided services.
The rest of the bad practices were split as follows:
• contractor did not perform the works or did not provide the services that were fully or totally paid – 19%,
• contractor «poached» our client to himself of to our competitor – 14%,
• contractor delivered goods or provided services of inappropriate quality – 13%,
• contractor presented himself in false colors – 13%,
• contractor faked the documents – 6%,
• contractor provided counterfeit products – 6%.
(the question was addressed to the respondents, who have faced their contractors' bad practices for the last 6 months (28%). Multiple answers.)
90% of the companies dealing with contractors check them before making a contract. In half of the occasions it is done via open databases.
RSBI — starting with 2020 a monthly research of SMB business attitudes is organized by PSB jointly with OPORA Russia and MAGRAM Market Research. The July measurement covered owners and executives of 1,629 small and medium companies across all Russian regions. Index higher than 50.0 p.p. indicates the growth of business activity, lower than 50.0 p.p. – the decrease. If the index is at the level of 50.0 p.p. – the market demonstrates stagnation.