Prime Minister: No negative trends that could have lead to mass closing down of small businesses through raising the minimum wage observed

A twofold raise of the minimum wage hasn’t led to mass closure of enterprises. Prime Minister of Ukraine Volodymyr Groysman announced on air of the ICTV channel on Monday.

The Head of Government noted that in the first month of 2017 the number of newly established enterprises had exceeded by almost 7 thousand the number of the closed ones.

"Every year, some businesses are closed down while others are registered, and it is natural. Out of really working enterprises there were wound up 16.8 thousand, but, instead, during the same period there were created 23.5 thousand enterprises. That is, it is by almost 7 thousand enterprises more. This means that no negative trends that would cardinally affect the situation are observed", stressed the Prime Minister, denying accusations of alleged mass closure of small businesses after the increase in the minimum wage.

The Head of Government announced that as of January in Ukraine there had been deregistered 129.2 thousand enterprises - SEPs (self-employed person). It is only about 6% against the overall quantity of registered enterprises, of which there are enumerated over 2 million in the country.

Among private enterprises 87% - making up 112.4 thousand in quantity - had not carried out any economic activity, "were just registered on paper".

Volodymyr Groysman explained that each entrepreneur should make contribution to the Pension Fund according to the laws and urged it was unfair to deprive a working person of his pension, adding it meant social equality.