1 The Republic of Tatarstan Agency of Entrepreneurship Development Infrastructure and Mechanisms of State Support and Development of Entrepreneurship in the Republic of Tatarstan 1

2 The Republic of Tatarstan Agency of Entrepreneurship Development State RT Agency of Entrepreneurship Development State Non-profit Organizations Banks Entrepreneurs Population Working places creation, social issues solution, «Middle Class» formation Increase of welfare Credit resources, investments Venture capital, investments Realization of state policy of RT entrepreneurship support efficiency increase Creation of favorable business climate Development of business 2

3 The Republic of Tatarstan Agency of Entrepreneurship Development 3 Structure of the Agency :  Legal Department  Department of Economy  Information-Analytical Department  Accounting Department  Organization Department  Agency Representatives in the cities and regions of the Republic of Tatarstan

4 The Republic of Tatarstan Agency of Entrepreneurship Development 4 Agency Representatives in 40 cities and regions of the Republic of Tatarstan (out of 43 total number of representatives)

5 The Republic of Tatarstan Agency of Entrepreneurship Development 8 The Law of the Republic of Tatarstan №105-ЗРТ «On the Program of Small Entrepreneurship Support in RT for the years of » has been developed and adopted on October 21, 2005

6 The Republic of Tatarstan Agency of Entrepreneurship Development 6 Legal Department  Gathers, analyses and considers proposals and complaints coming from small business entities as well as proposes measures for their solution  Renders legal assistance and represents interests of the entrepreneurs in the state power bodies  Assists the RT law enforcement bodies in creation of business protection system in accordance with established procedure  Participates in activities aimed at administration barriers negotiation

7 The Republic of Tatarstan Agency of Entrepreneurship Development 7 Legal Department (Continued)  Participates in preparation and realization of target programs in the field of business support  Cooperates with the Chamber of Commerce and Industry of the Republic of Tatarstan, public associations of entrepreneurs and other non-profit organizations, aiming in their activity at support and development of business  Participates in development of normative-legal acts, concerning the interests of entrepreneurs

8 The Republic of Tatarstan Agency of Entrepreneurship Development 8 Organization Department Coordinates its activity with the RT President Administration, RT State Council, RT Cabinet of Ministers, ministries and RT industrial departments, city and regional Administrations of RT Organizes and holds meetings, “round tables”, conferences, exhibitions, congresses concerning the issues of small and medium size business Coordinates and controls the activity of the Agency representatives in the RT cities and regions Gathers information for analysis of small business conditions in the RT cities and regions

9 The Republic of Tatarstan Agency of Entrepreneurship Development 9 Information-Analytical Department Disseminates information via electronic and printed mass media regarding the activity of the Agency, problems and perspectives of business activity in the RT cities and regions Organizes educational activity and holds consultations, seminars, training regarding the issues of business management in RT cities and regions (organizes the annual competition of draft projects and research works among schoolchildren, pupils and students of the Republic “YOUR OWN BUSINESS. BUSINESS-PLAN FOR TATARSTAN”)

10 The Republic of Tatarstan Agency of Entrepreneurship Development 10 Creates positive image of businessmen organizing the annual competition among journalists of the Republic “We, the Middle Class” by the nominations: «Problems and perspectives of business development in the RT cities and regions», «Role of personality in business», «Innovational business» Information-analytical department (Continued)

11 The Republic of Tatarstan Agency of Entrepreneurship Development 11 Information-analytical department (Continued) Develops guiding materials and recommendations regarding issues of small and medium size business (17 digests have been developed regarding urgent issues of business management) Organizes participation of RT small and medium size enterprises in exhibitions and fairs of commodities and services in RT and RF Maintains the work of the official site of the Agency Provides international and inter-regional cooperation of the Agency in the field of small business

12 The Republic of Tatarstan Agency of Entrepreneurship Development 6 The official site of the Agency in the internet –

13 The Republic of Tatarstan Agency of Entrepreneurship Development 13 Department of Economy Coordinates its activity with RT financial credit organizations: IVF RT (Investment Venture Fund ), banks etc. with the aim of development and realization of small and medium size business financial support programs in various branches of economy Participates in the competition «Subsidies and subventions into the budgets of the RF legal entities for financing of activities fulfilled by the RF legal entities in the frames of state support of small business” organized in the Russian Federation and aimed at realization of small and medium size business financial support programs  Monitors RT small and medium size business activity with the aim of state support directions determination  Explains to the entrepreneurs the system of bank loans and credits in micro- financial organizations acquisition, procurement of property for lease.

14 The Republic of Tatarstan Agency of Entrepreneurship Development 14 Investment – Venture Fund of the Republic of Tatarstan The Republic of Tatarstan innovational potential increase, development of science intensive production lines and introduction of new progressive technologies Participation in realization of investment and venture projects, including through subsidies for compensation of part of the interest by the commercial loans; small business enterprises support through the mechanism of leasing, realization of various programs: middle-term micro-crediting as well as crediting of small and medium-size business, engaged in the real sector of economy. Main goal: The Fund activity aimed at the financial support of small and medium-size business:

15 The Republic of Tatarstan Agency of Entrepreneurship Development INVESTMENT- VENTURE FUND OF THE REPUBLIC OF TATARSTAN Floats the replenished deposit into authorized banks for the period of under 3 years at 1 % annual interest and controls the target use of monetary funds SMALL BUSINESS ENTERPRIZES THE REPUBLIC OF TATARSTAN AGENCY OF ENTREPRENEURSHIP DEVELOPMENT Controls fulfillment of trilateral agreement of cooperation and monitoring of the program realization Agreement of cooperation THE REPUBLIC OF TATARSTAN PROGRAM OF MICROCREDITING FOR SMALL BUSINESS ENTERPRIZES 15

16 The Republic of Tatarstan Agency of Entrepreneurship Development TOTAL AMOUNT OF GIVEN CREDITS 250 mln. rb. THE REPUBLIC OF TATARSTAN PROGRAM OF MICROCREDITING FOR SMALL BUSINESS ENTERPRIZES NUMBER OF GIVEN CREDITS 919 AVERAGE CREDITS INTEREST RATE 8,7% AVERAGE Trade 67,2% Services 13,8% Agriculture 5,4% Public catering 0,8% Construction 2,6% Production 8,6% Other 1,6% REINVESTED FUNDS As of : given 180 credits for the sum of over 50 mln. rb. 16

17 The Republic of Tatarstan Agency of Entrepreneurship Development PROGRAM OF MICROCREDITING ALLOWED : Get cheap middle -term credits, including «For Launching» Realize their projects, extend business Form credit history Small business enterprises The Republic of Tatarstan Allow broader access to the credit resources for the entrepreneurs Create new working places Increase tax proceeds into the budget Increase investment attractiveness 17

18 The Republic of Tatarstan Agency of Entrepreneurship Development INVESTMENT- VENTURE FUND OF THE REPUBLIC OF TATARSTAN Deposits money in the amount of 150 mln.rb. at 1% of annual interest for the period under 3years. Controls the target use of monetary funds SMALL BUSINESS ENTERPRIZES THE REPUBLIC OF TATARSTAN AGENCY OF ENTREPRENEURSHIP DEVELOPMENT Controls fulfillment of trilateral agreement of cooperation and monitoring of the program realization Agreement of cooperation THE REPUBLIC OF TATARSTAN PROGRAM OF CREDITING FOR SMALL BUSINESS ENTERPRISES REALIZING THEIR PROJECTS IN THE REAL ECONOMY SECTOR 18 SMALL BUSINESS ENTERPRIZES -ОАО «Ak Bars» Bank carries out crediting for the total sum of 450 mln. rubles ( including 300 mln. rubles from the own funds of the Bank) - Credit amount - from 500 thousand rubles to 3 mln. rubles - Interest rate by the credit – from 8 to 12% of annual interest rate for the period under 3 years.

19 The Republic of Tatarstan Agency of Entrepreneurship Development 19 ОАО «Innovation-Production Technopark «Idea», KAZAN

20 The Republic of Tatarstan Agency of Entrepreneurship Development 20 Measures of investment attractiveness increase in the Republic of Tatarstan  The Law N 1872 of the Republic of Tatarstan “On the Investment Activity in the Republic of Tatarstan” was adopted on November 25, 1998 (alterations of June 24, 2003 and July 18, 2005) for the purposes of investment attractiveness increase in the Republic of Tatarstan. The Law envisages the following benefits for the enterprises engaged in the investment activity: beneficial conditions of land tenure and other natural resources in the ownership of the Republic of Tatarstan use; benefits in the regional taxes and dues (transport tax, land tax, corporative property tax); corporation profit tax rate decrease

21 The Republic of Tatarstan Agency of Entrepreneurship Development 21 Progress in the number of small business enterprises in the Republic of Tatarstan unit Private entrepreneursSmall enterprises

22 The Republic of Tatarstan Agency of Entrepreneurship Development 22 The amount of taxes and dues paid by the small business enterprises into all levels of budget 5,5 bln.rubl. 6,07 8,3 bln. rubl. 6,79 10,3 bln.rubl. 7, Amount of the taxes and dues paid by the small entrepreneurship, billion rubles Unit weight of the small business in general proceeds into the RF and RT taxation system, %

23 The Republic of Tatarstan Agency of Entrepreneurship Development 23 Share of small and medium size business (SMB) in gross produce of the Republic of Tatarstan (GP RT) (according to Tatarstan statistics “Tatarstanstat”) SMB share 14,6 % GP RT 2003 GP RT 2004 SMB share 16,9 % GP RT 2005 SMB share 16,2 %

24 The Republic of Tatarstan Agency of Entrepreneurship Development 24 Progress of number and amount of loans given to small business by the banks in the Republic of Tatarstan 15,3 thous. cases 35,0 bln. rubl. 21,2 thous. cases 61,9 bln. rubl. 28,3 thous. cases 77,4bln. rubl Loans number given to small business Loans amount given to small business

25 The Republic of Tatarstan Agency of Entrepreneurship Development 25 Small enterprises in the Republic of Tatarstan Employment size by the payroll of employees in the Republic 89,8 thousand 133,4 thousand 146,5 thousand

26 The Republic of Tatarstan Agency of Entrepreneurship Development 27