The regional budget has reportedly planned considerable resources for the development of small and midsize businesses.

Altogether about 450 million rubles will be allocated for the support of small and midsize entrepreneurs, compared with 380 million last year. Will this money give an expected effect? Our experts gave an optimistic answer to this question.

According to a report announced by the regional branch of the Federal Tax Agency, there were 232,000 officially registered entrepreneurs in the Krasnodar region at the end of the first quarter of this year, as against 224,000 a year ago.

A number of expert institutions that monitor the wellbeing of small and midsize businesses, for instance, the annual report of the National Institute of System Research of the Problem of Entrepreneurship, have also stated that this year a number of new enterprises grew as compared with 2016.

“However, one should not unambiguously perceive this positive balance as evidence of growth,” says Viktor Loshchinsky from the above mentioned Institute. “In the Krasnodar region, for example, such growth of the number of small enterprises may be related with massive layoffs in the industrial and governmental sectors during the crisis.”

The expert considers that the opening of an individual small business, even some outwork, is a chance for independent progress if not a guarantee of stability.

“A lot of startup support programs are being fulfilled in a number of sectors, to which fact the appearance of new businesses may be related,” considers Prof. Aleksandr Polidi. “For me, it is obvious: there are much more tools of governmental backup and subsidies helping to open a business even with a minimum starting capital in the Krasnodar region now [than ever before].”

In their turn, officers of various controlling authorities announce that governmental pressure on business in gradually going down. For instance, Labour Inspectorate has refused to inspect the companies whose activities are not connected with risks to life, while Tax Inspection has promised tax holidays and no checkups until 2018 to all newly registered entrepreneurs.

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