Challenges in Attracting Inward FDI to Slovenia are Rising

The role of Slovenian entities in multinational networks has moreover diminished, but a vast majority maintain a developmental role. In line with this, foreign investors highlight the highly qualified, professional and knowledgeable staff as the main advantage of Slovenian business environment. Geographic position and access to additional markets are also frequently mentioned advantages of Slovenia.

However, foreign investors note that Slovenia’s location advantages are diminishing, whereas the barriers to doing business in Slovenia remain the same throughout the years. Among them, long and complex bureaucratic procedures and administrative barriers, unfavourable tax system and policy (especially the high taxation of labour), as well as complex and continuously changing legislation (especially labour and tax legislation) are stressed. Businesses are also critical of the negative attitudes towards capital in the society at large. They additionally expect more professionalism and greater responsiveness from support institutions as well as professional and responsible behaviour from politicians.

While the surveyed firms are planning moderate growth and expansion in Slovenia and other markets for 2025, the survey records a large decline in expansion plans in Slovenia (mostly due to a larger share of foreign-owned firms planning to maintain the same extent of business activity in the market). The share of surveyed foreign-owned firms with expansion plans in Slovenia decreased under 20 % - for the first time following 2010.

Learn more about the research Foreign investors about Slovenian business environment conducted by members from Centre of International Relations, Prof. Dr. Andreja Jaklič and Teaching Assistant Dr. Iris Koleša on the link.

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