Marginal Profit as a Company`s Work Indicator


CASE Ukraine`s Senior Economist Volodymyr Dubrovsky explained to the ‘CFO of the Company’ magazine about the factors that affect the Ukrainian businesses` marginality level.

‘High-level marginality is mainly associated with several risks. Firstly, it is the risk associated with tax audits, additional charges of taxes, that is, the Fiscal Service ‘always comes to rescue’, says Volodymyr Dubrovsky, a senior economist of the Center for Social and Economic Research CASE Ukraine.

Secondly, as the expert claims, there is a very low level of property rights protection in Ukraine. The business owners are not confident in the future day as well as that the part of their property would not be confiscated by an illegal takeover. Partners often do not pay back, and one cannot do anything. These cases are called by Volodymyr Dubrovsky an ‘actual property confiscations’. And the third factor that affects the level of marginality is a very low competition.

Read the full article [in ukrainian].

November 16, 2016