The impact of the political crisis on small and large firms in the Republic of Macedonia
Date Issued
2018
Author(s)
Majovski, Irina; Janevski, Zoran; Davitkovska, Elena
Abstract
The recent political instability in the Republic of Macedonia has taken its toll on the
business sector. During political instability, firms tend to postpone any major decision
regarding future projects or investments as a result of changes in firms’ business perceptions
and lack of predictability of future policies and trends. In this regard, a research was conducted
among small, medium and large firms in the Republic of Macedonia in order to investigate the
main consequences of the political crisis in the past few years on the business sector. The
research findings reveal that the most severe implications of the political instability on
businesses pertain to lack of long-term planning, decline in sales, increased difficulties related
to collection of claims and implementation of ongoing contracts, and reluctance to conduct
planned investments and recruitments. Results have also highlighted major differences between
small and large firms in regard to perceived consequences of the political instability. Research
on the effects of political instability on businesses is rather scarce in literature. Hence, the
findings of this research are of particular importance for improving the knowledge about the
potential implications of political instability on businesses and for identifying the main
challenges that businesses face
business sector. During political instability, firms tend to postpone any major decision
regarding future projects or investments as a result of changes in firms’ business perceptions
and lack of predictability of future policies and trends. In this regard, a research was conducted
among small, medium and large firms in the Republic of Macedonia in order to investigate the
main consequences of the political crisis in the past few years on the business sector. The
research findings reveal that the most severe implications of the political instability on
businesses pertain to lack of long-term planning, decline in sales, increased difficulties related
to collection of claims and implementation of ongoing contracts, and reluctance to conduct
planned investments and recruitments. Results have also highlighted major differences between
small and large firms in regard to perceived consequences of the political instability. Research
on the effects of political instability on businesses is rather scarce in literature. Hence, the
findings of this research are of particular importance for improving the knowledge about the
potential implications of political instability on businesses and for identifying the main
challenges that businesses face
Subjects