All-Russian Non-governmental Organization of Small and Medium-Sized Business OPORA RUSSIA Borisov Sergey President July 2-3, 2007 Liechtenstein

2 SMALL ENTREPRENEURSHIP today 1 million 33 thous. – small enterprises 2 million 900 thous. - entrepreneurs Number of employees in SE – 16,7 million people or 25% of total number of employees ~ 15% in structure of GDP

3 Branch structure of small entrepreneurship Small Enterprises (SE)*SE + Entrepreneurs *Number of small enterprises (legal persons) on branches of economy according to the Federal service of the State statistics 50% 13% 3% 2% 17%

4 PROBLEMS of Small Enterprises’ Development business real estate - about 70 % of entrepreneurs are unable to purchase due to high prices or due to artificial restriction of access to auctions; financial condition - more than 50 % of entrepreneurs estimate their position as “relatively stable, enough to maintain business, but not enough to develop it further”; influence of administrative resource on competition. Public servants are active players of market relations; costs to overcome administrative barriers run: from2005 – 8,5 % of turnover to ,6 % of turnover.

5 Federal Program to Support Small Enterprises The Federal government spend to support small enterprises (euro) In 2005 – In In 2007(already) – Funds are submitted to regions: 50% - from the federal government 50% - from regional administrations

6 Researches OF OPORA RUSSIA Directions: Business climate Innovations Industry and Technology Quality of laws Administrative barriers Actions of administration …. Federal program Regional program Municipal reform; Administrative reform … separate actions Estimation of business climate regularly selectively Estimation of business activity Estimation of State policy

7 OPORA RUSSIA today OPORA RUSSIA All-Russian Public Organization of Small and Medium-Sized Entrepreneurship (created in September 2002) OPORA Association of entrepreneurial organizations of Russia (created in September 2001) Commissions & Committees Coordinators in 7 Federal Districts Entrepreneurialregional associations and unions Entrepreneurial sectoral associations and unions (101) Entrepreneurs Above regional divisions Entrepreneurs Approx. 4,5 million jobs

8 REGIONAL DIMENSION ■ OPORA RUSSIA has its divisions in 79 of 88 regions of the country Regions where OPORA RUSSIA divisions are set up

9 OPORA’s priority activities Improvement of business conditions –administrative reform, –tax reform, –anti-monopoly regulation, –fight against corruption, etc Diversification of small business –reduction of share of retail trade, –increase of share of production, services, innovations Development of SMEs support infrastructure –industrial parks, –technoparks, –clusters, –business incubators Development of international cooperation.

10 OPORARUSSIA Ministry for Economic Development and Trade of the Russian FederationInternationalnongovernmentalorganizations and programs International cooperationPARTNERS (international business-associations) CGPMEFrance CECCChinaOSECSwitzerland US-RUSSIACENTER for entrepreneurship USA KFSBKoreaFICCIIndia SBFSingapore SARIOSlovakia FFEFinland OPORA EUROPE OPORA ASIA OPORA EUROPE OPORA ASIA Zurich Shanghai Zurich Shanghai Ministry for Foreign Affairs of the Russian Federation UNICEEU

11 OPORA EUROPE Official representative of OPORA RUSSIA The main aim: to develop and strengthen business relationships between Russian and European small and medium-sized companies. Services provided by OPORA EUROPE (Zurich) Information Consultancy Business partner search