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State Support for Small and Medium-sized Businesses in Russia
August 26, 2018 00:13


The auditors of the Accounting Chamber have made a conclusion about the inefficiency of measures of state support for small and medium-sized businesses, as RBC reports.

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Having analyzed the measures of state support for three years (2014-2017), they came to the conclusion that the program does not contribute to the growth in the number of jobs in the sector of SMEs, and the grants are distributed between regions in a non-uniform way.

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The program target indicators set for 2017 were mostly achieved; while the planned values themselves were significantly reduced, as compared to 2014.

For example, the target indicator titled ”The number of newly created jobs in the sector of SMEs” fell from 108 thousand (2014) to 25 thousand (2017). A total of 120.5 billion roubles from the federal budget have been spent on the development of the sector of SMEs from 2014 to 2017. In 2014-2016, only 5 regions out of 85 received 20% of grants. In the past year 11 regions received about 40% of the allocated funds - more than 200 million roubles each, and 8 regions received less than 0.7% of grants.

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The auditors also noted that the indicator on the increase in long-term loans to SMEs was not achieved as well: the share of loans secured by guarantees under the National Guarantee System (NGS) has grown from 1.5% in 2016 to 4.8% in early 2018, but it still remains insignificant. The overall volume of loans given to the sector of SMEs decreased in the years 2015-2017.

We recall that the loyalty index of small businesses fell in the first half of 2018, as compared to the previous year, reaching 27 points, according to Inc.Russia referring to the study of Alfa-Bank titled “Small Business Pulse”. A more pessimistic attitude was previously noted only in November 2015, when the figure dropped to -38. The vast majority of respondents (83%) believe that the current economic situation in the country hinders the development of business, and the purchasing power of the population decreases (73%). 50% of respondents think that the economic situation will become even worse in the next six months, and the purchasing power will continue to decline (59%). More than half of respondents note a drop in their profits, another third of respondents observe a decrease in the number of customers and purchases. Besides, one of the factors of growth of pessimism is called the expected increase of value-added tax (VAT) up to 20%. How to chose you tax regime online - find here or consult our attorneys.

Author: Anna Dorozhkina

Tags: Russian laws Russian business Legal Services in Russia   

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