Putin says Russia’ small, mid-sized businesses develop slowly

MOSCOW, Apr 7 (PRIME) -- Business climate in Russia is improving, but small and mid-sized businesses are developing very slowly, President Vladimir Putin said Tuesday at a meeting of the country’s State Council

“Their contribution to the country’s gross domestic product does not exceed 21%,” while in the developed countries the figure reaches 50% and even more, Putin said.

Risks and obstacles prevent Russians from starting own businesses, and they must be eliminated through integrated measures. The federal and regional governments should establish special departments that would solve issues of the businesses’ development within five years, he said, adding that he supports the idea of simplifying the process of starting own business for Russians.

Russia’s Economic Development Ministry has suggested the government create a single agency to support small and medium-sized businesses, Minister Alexei Ulyukayev said separately at the meeting.

Currently, MSP-Bank provides credits to regional banks to finance these businesses, while Credit Guarantees Agency provides guarantees to small and mid-sized businesses. “We could transfer some powers to this institution, which would act as an agency for state development of small and mid-sized businesses,” Ulyukayev said.

The institution may also receive the right to set quotas for access of the businesses to state procurements, and may even receive some powers of the economic Development Ministry in the financing of state program for supporting the businesses through grants, microloans and business-incubators, he added.

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