THE MINISTRY OF ECONOMIC DEVELOPMENT OF THE RUSSIAN FEDERATION The Sixth (6 th ) Meeting of the SME and enterprise policy Subgroup for the EU-Russian Dialogue on Industrial and Enterprise Policy Working Group Brussels, May 12, 2011 The State Program of financial support of Small and Medium Enterprises in the Russian Federation

THE MINISTRY OF ECONOMIC DEVELOPMENT OF THE RUSSIAN FEDERATION Federal Law «On development of small and medium entrepreneurship in the Russian Federation» 2 Micro enterprisesSmall enterprisesMedium enterprises up to 15 employees employees 101 – 250 employees annual turnover up to € 1,5 mln annual turnover up to € 10 mln annual turnover up to € 25 mln SMEs Criteria

THE MINISTRY OF ECONOMIC DEVELOPMENT OF THE RUSSIAN FEDERATION SME sector main indicators 3 3,2% - SME sector growth in 2010 € 645 bln – annual turnover of SME sector 17 mln employed in SME sector 25% of total employment 21% - share of SMEs in Russia’ GDP 1,7 mln micro, small and medium enterprises and 4,1 mln private entrepreneurs

THE MINISTRY OF ECONOMIC DEVELOPMENT OF THE RUSSIAN FEDERATION SME sector main indicators 4

THE MINISTRY OF ECONOMIC DEVELOPMENT OF THE RUSSIAN FEDERATION 6 SME Support Programme

THE MINISTRY OF ECONOMIC DEVELOPMENT OF THE RUSSIAN FEDERATION SME support in 2010 Key measures on the SME development undertaken by the Russian Government in 2010 SME support in € 600 mln Support for export-oriented SMEs – € 55 mln Support for innovative SMEs – € 53 mln Start-up grants for SMEs – € 50 mln Leasing for SMEs – € 30 mln Guarantee funds – € 67,5 mln Micro loans – € 66,7 mln Business trainings – € 8,5 mln Youth entrepreneurship – € 7,5 mln 5

THE MINISTRY OF ECONOMIC DEVELOPMENT OF THE RUSSIAN FEDERATION Innovative SME support in Support for innovative SMEs Support for innovative SMEs Innovative grants – up to € for one company set up by University Subsidies to innovative companies – up to € for one company (equipment, patents, technology) Subsidies to innovative companies – up to € for one company (equipment, patents, technology) Special educational programmes 10 centers Clusters, prototype and design centers Support for small innovative companies

THE MINISTRY OF ECONOMIC DEVELOPMENT OF THE RUSSIAN FEDERATION SME support in Subsidies Registration of a trade mark Participation in exhibitions Credit rates Certification Protection of intellectual property rights Export Promotion Centers Marketing Exhibitions Export contracts support Organization of meetings Foreign markets surveys Promotion of SMEs on international markets Types of the support Financing in Financing in Financing in 2010 Financing in 2010 € 5,3 mln € 50,0 mln SMEs 575 SMEs Support for export-oriented SMEs

THE MINISTRY OF ECONOMIC DEVELOPMENT OF THE RUSSIAN FEDERATION 8 Guarantee funds The Government of the Russian Federation founded Guarantee funds for SMEs in most of regions 80 Regional Guarantee funds € 625 mln capitalization (€ 410 mln subsidized on State SME Support Programme in ) SMEs got loans from banks more than € 1,8 bln more than € 1,8 bln

THE MINISTRY OF ECONOMIC DEVELOPMENT OF THE RUSSIAN FEDERATION Micro Loans 9 To provide 68 micro loans for SMEs Russian regions in 2005 – 2010 were subsidized with € 115 mln 2010: micro loans for SMEs - € average loan

THE MINISTRY OF ECONOMIC DEVELOPMENT OF THE RUSSIAN FEDERATION Start-up grants : start-up grants - € average grant - € start-up grants for innovative SMEs -Priority to jobless start-up grants for unemployed from the Ministry of Health and Social Development Programme To provide start-up grants for new SMEs Russian regions in 2005 – 2010 were subsidized with € 95 mln

THE MINISTRY OF ECONOMIC DEVELOPMENT OF THE RUSSIAN FEDERATION Russian innovative SME support infrastructure 22 regional venture funds with total capitalization exceeding € 230 mln The fund of funds – Russian venture company with total capitalization exceeding € 675 mln Seed funds (2010 – 2012) € 90 mln Scientific research funds Foundation for Assistance to Small Innovative Enterprises – FASIE ( ) € 135 mln Innovative SMEs support 11

THE MINISTRY OF ECONOMIC DEVELOPMENT OF THE RUSSIAN FEDERATION New innovative SMEs founded by Universities SME funding January – educational institutions 116 – innovative companies 881 – employees January – educational institutions 917 – innovative companies employees 92 regional business incubators 22 business incubators in Universities 25% min 75% max Private sector invests money (min. 50%), equipment University invests intellectual property rights A new founded SMEs receive infrastructure, grants and micro loans. 12

THE MINISTRY OF ECONOMIC DEVELOPMENT OF THE RUSSIAN FEDERATION 13 € for 1 new job new J O B S saved 2010 Progress Credit market ≥ 2009 Growth in demand Lower credit rates Recovery

THE MINISTRY OF ECONOMIC DEVELOPMENT OF THE RUSSIAN FEDERATION 14 SME support in € 525 mln Youth Entrepreneurship SME support in 2011 Guarantee funds Export oriented SMEs Start-ups Micro loans Business incubators, Industrial parks, Technoparks Leasing Innovative SMEs

THE MINISTRY OF ECONOMIC DEVELOPMENT OF THE RUSSIAN FEDERATION The main directions of support in Grants, subsidies, trainings, exhibitions New engines of support in 2011 Innovations Specialized infrastructure Modernization Export Finance Assistance to companies entering a stock exchange; Trainings for business angels Assistance to companies entering a stock exchange; Trainings for business angels existing new Leasing of equipment (grants, subsidies), power efficiency Leasing of mobile platforms; Localization of production Leasing of mobile platforms; Localization of production Business Support Centers (consulting) Export Support Centers, Grants for new exporters Export Support Centers, Grants for new exporters Subsidies to micro finance organizations, guarantee funds, start-ups Guarantee fund pawns for micro finance organizations Guarantee fund pawns for micro finance organizations Leasing of equipment (grants, subsidies), power efficiency Clusters, centers of prototypes, design, centers of public access, industry parks, technoparks Clusters, centers of prototypes, design, centers of public access, industry parks, technoparks

Thank You for Attention! The Ministry of Economic Development of the Russian Federation Department of Small and Medium Enterprises Development Phone: Fax: Web: THE MINISTRY OF ECONOMIC DEVELOPMENT OF THE RUSSIAN FEDERATION