Small and medium entrepreneurship in Russia

Small and medium-sized companies all over the world play an important role in economies aimed at industrial production and innovation.

As most of the dynamic SMEs world-wide, Russia's emerging enterprises face the challenge of internationalization from the very first day of their existence. They need to organize research and development partnerships in order to generate new products, processes and services. They have to look for suppliers and distributors abroad. Or they have to move abroad, because their main clients are internationalizing. Some companies have to export most of their products from the start. More advanced companies look for new markets, establish joint ventures or create a subsidiary abroad.

Large enterprises like Gazprom or NorilskNikel have their own departments for business development. Most SMEs, however, need support in forging international ties. They look for basic information about foreign markets, legal conditions for doing business abroad, or finding the right partners. The success of Russia's booming SMEs thus also depends on their ability to get international.

In the structure of small entrepreneurship still dominates a trading sector - nearly 80%.

In the sphere of high technologies - about 1% of small enterprises.

12% of small enterprises are dealing in construction and 11% in industry.

In public health – only 2% of the total structure of small entrepreneurship. This means about 20 thous. enterprises.

The Federal Program of support of small entrepreneurship is up and running, which realization is entrusted with the Ministry of Economic Development of the RF.

• Every year the Russian Government increases volume of financing of measures aimed at support of small business (158 million US Dollars in 2007, 160 million US Dollars in 2008. This year 145 million US Dollars.
• This program gave a serious incentive to development of small entrepreneurship in regions, since it is co-financed by the federal government and regional authorities on conditions 50/50.

• construction of business incubators;
• development of a system of lending;
• support of export-oriented small enterprises,
• creation of venture funds;
• support of other regional measures on development of entrepreneurship.