This research was conducted in Macedonia between November 2012 and May 2013, as part of the fifth round of the Business Environment and Enterprise Performance Survey. The objective of the study is to obtain feedback from enterprises in client countries on the state of the private sector. The research is also used to build a panel of enterprise data that will make it possible to track changes in the business environment over time, thus allowing, for example, impact assessments of reforms. Through face-to-face interviews with firms in the manufacturing and services sectors, the survey assesses the constraints to private sector growth and creates statistically significant business environment indicators that are comparable across countries. In Macedonia, data from 360 establishments was analyzed. Stratified random sampling was used to select the surveyed businesses. The survey topics include firm characteristics, information about sales and suppliers, competition, infrastructure services, judiciary and law enforcement collaboration, security, government policies, laws and regulations, financing, overall business environment, bribery, capacity utilization, performance and investment activities, and workforce composition. In 2011, the innovation module was added to the standard set of Enterprise Surveys questionnaires to examine in detail how introduction of new products and practices influence firms' performance and management.