2. SME in the Komi Republic 1 In the Komi Republic Today:  4982 small businesses are registered.  34.8 thousand people are entitled to practice entrepreneurial activity.  45.5 thousand people are employed by SME.  Average number of employees in SME equals 6 persons.  20% of total labor force is being employed by SME of the Komi Republic.

3. SME in the Komi Republic 2 Small business is actively operating in the nonproductive sector of economy  More than 70% of entrepreneurs and nearly 40%of small businesses are concentrated in trade and catering.  Together they account for 3/4 of the Republican retail turnover and almost 2/3 of consumer services in Komi.  In 2003 the sales of services by small businesses made up 2.2 billion rubles, small business retail trade turnover accounted for 34.5 billion rubles.

4. SME in the Komi Republic 3 Small business is also operating in the business sector of economy  Industrial output of small businesses in the Komi Republic in 2003 accounted for 4.1 billion rubles.  Small enterprises play a significant role in the production of consumer goods: doors and windows, furniture, footwear, mineral water and many other goods are mainly produced by small businesses in the Republic.

5. SME in the Komi Republic 4 The share of small businesses in:

6. SME in the Komi Republic 5

7. 6 The goal of the Program:  To enhance the rate of small business growth, to provide available financing to small enterprises, to develop the enabling psychological environment for sustainable operation of small business enterprises. The Program is aimed at:  Improvement of government regulation of small business development in the Komi Republic, including:  building of favorable legislation and investment climate to support small business operation, and available financial assistance to small businesses  development of small business support network.  freer entrepreneurs’ access to information technologies  support to small business skilled labor  development of interregional and international small business partnership

8. SME in the Komi Republic 7 Financing of Republican Program «SME development and support in the Komi Republic (2004-2005)»

9. SME in the Komi Republic 8 Interaction with business community Ministry of Economic development of the Komi Republic Coordinating Council for Small Business of the KR Government Komi Republic Chamber of Commerce Komi Republic Department of the Russian Union of Business Organizations “OPORa Rossii” Union of Public Associations of Entrepreneurs Of the Komi Republic “Sodeystviye” Association of Small Business Development “Perspectiva” Union of Industrialists and Entrepreneurs of the Komi Republic Sector associations of entrepreneurs

10. SME in the Komi Republic 9 The expected Program outputs are:  The increase in SME number  The extension of government support to SME  The growth of services and goods production  Support to employment in SME sector and creation of new jobs  The increase of SME contribution to the Republican budget  Higher sustainability of SME operation  Finding the additional non-budget financial resources for SME