REGIONAL COOPERATION FORUM “SMALL BUSINESS IN RUSSIAN REGIONAL DEVELOPMENT” Sergey Borisov, President of All-Russian public organization of small and medium business OPORA RUSSIA Geneva, July 9-10, 2006

2 OPORA RUSSIA All-Russian public organization of small and medium business (founded in September, 2002) OPORA All-Russian Union of business organizations (Founded in September, 2001) Committees and commissions Regional coordinators (7 RF federal districts) Entrepreneurs Entrepreneurial regional Unions and Associations Entrepreneurial branch associations, unions (96) Entrepreneurs More than Regional departments in 78 RF regions About 3,5 million job places

3 Small entrepreneurship in Russia today and plans for the future 979,3 thousands of small enterprises 979,3 thousands of small enterprises Aim – annual increase minimum Aim – annual increase minimum5-10% 13-15% in production of Gross Internal Product 13-15% in production of Gross Internal Product Aim – more than 50% Aim – more than 50% 24,7% of economically active population is involved in small and medium business 24,7% of economically active population is involved in small and medium business Aim – more than 50% Aim – more than 50% 979,3 thousands of small enterprises 979,3 thousands of small enterprises Aim – annual increase minimum Aim – annual increase minimum5-10% 13-15% in production of Gross Internal Product 13-15% in production of Gross Internal Product Aim – more than 50% Aim – more than 50% 24,7% of economically active population is involved in small and medium business 24,7% of economically active population is involved in small and medium business Aim – more than 50% Aim – more than 50%

4 Branch structure of small entrepreneurship Small Enterprises (SE)*SE +Private Entrepreneurs *Number of small enterprises (legal persons) on branches of economy according to the Federal service of the State statistics 50% 13% 21% 2,5% 17%

5 Rating of the regions Successful regions Moderate + Moderate - Lagging

6 Actual risks

7 Index of OPORA (the index of enterprise climate) Tula area Yamalo-Nenetskyi AR Moscow Krasnoyarsk region

8 Programme of support of small entrepreneurship Directions of support: Creation of business incubators; Development of micro-financing; Support of exports; Creation of venture funds; State guaranty for SME credit. Volume of funding: From funds of the federal budget Raised funds from the regional budgets 2005$50 Millionabove $50 Million 2006$100 Million above $100 Million 2007$200 Millionabove $200 Million

9 Decisions of the Government of May 24, 2006 New law for small business Increasing possibilities of using of the simplified taxation system Reducing of administrative barriers for small enterprises Simplification of access of small enterprises to property leased from the government Developing simplified procedure of connecting small enterprises to electricity networks and reduction of prices for connecting to networks of natural monopolies Developing of credit system for SME

10 Examples of potential clusters in Russia Perm Region Machinery; Chemical industry, Timber industry Samara region/ Tolyatti Automobile industry Arkhangelsk region Timber industry Republic of Tatarstan /Naberezhnye Chelny Automobile industry; /Nizhnekamsk Petrochemicals Tver region Recreation & tourism Krasnodar territory Recreation & tourism Irkutsk region and Republic of Buryatia Recreation & tourism Leningrad region Transportation & logistics Astrakhan region Recreation & tourism Moscow and Moscow region Biotechnologies; Information and communication technologies