OREANDA-NEWS. On 31 July 2008 was announced, that despite the increase of the production and workforce costs, as well as the sustained high inflation rate, which is reducing the competitive capacity of local entepreneurs, majority of Latvian business people still snub at the possibility to pull their businesses out of Latvia in the nearest future, according to the results of the business activity research Parex Index, conducted in June 2008.  Measuring the possibility of pulling their business or part of it out of Latvia in the nearest future, such possibility was ruled out by 68,42% of the enterpreneurs surveyed.

9,6% of the respondents believe that there is a very weak possibility of such scenario, while 5,9% described the possibility as rather weak. Only 2% of the respondents aknowledged, that the possibility of moving the business out of Latvia is very strong, with 5,6% believing - such possibility is rather strong. 8,5% of the respondents, for their part, found it difficult to say if a possibility to pull business to some other country exists.

When analyzing the results by location of the businesses, entepreneurs based closer to Riga are more negative about pulling out of Latvia – 86,4% of these rule out such possibility at all. Entepreneurs in rural municipalities and countryside share similar sentiments – 77,3% of them eliminate the possibility of dislocating their businesses to some other country.

A comparatively stronger possibility to pull business out of Latvia is voiced by managers of enterprises with shared (foreign and local) capital – 10,2% of these respondents believe that such scenario is very possible, while 12,2% described it as rather possible.