Attempts to bring entrepreneurship to the economic forefront are known to be carried out at the federal and regional levels of executive power; municipalities do not take part in the process.
Still, development of small and midsize businesses must begin at the level of municipalities, says Aleksandr Kislov, chairman of the Chamber of Commerce and Industry of the Leningradsky rayon. He was quoted as saying recently that the rayons know little about what small businesses are doing in the municipalities. “They may assign some 200,000 [rubles] to six or seven businessmen – and consider their mission fulfilled. The municipalities are not at all engaged in what they should be engaged,” said Mr. Kislov. Unfair competition is a big problem: it is legal businesses that has to endure a number of different controls and checkups – as a result, the entrepreneurs tend to retreat into shadow.
At the same time, much can be done if some municipal land control be arranged – for now a great many of garage cooperatives and car washes do work but do not pay any taxes, because they are not registered as small businesses. So, these ‘garagistes’ may be driven out of the grey segment – but nobody cares to contact them.
“Governmental clerks must leave their offices and inspect the neighbourhoods,” recaps Kislov. “They must search for entrepreneurs, offering them various perks and supports: tax holidays, purpose-oriented subsidies, guarantee fund services, micro financing, etc. By the way, Governor [Kondratiev] keeps on saying the same for months – but no real feedback has been seen yet.”
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