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Small and medium-sized businesses in Moscow

Main article: Small and medium-sized businesses in Moscow

Small and medium-sized enterprises of the Russian Federation

The activities of small and medium-sized businesses in Russia are regulated by the Federal Law of 209-FZ "On the Development of Small and Medium-Sized Businesses in the Russian Federation," adopted on July 24, 2007, which specifies the criteria for classifying an enterprise as a small business^[1].

Small and medium-sized businesses include consumer cooperatives and commercial organizations included in the unified state register of legal entities (with the exception of state and municipal unitary enterprises), as well as individuals included in the unified state register of individual entrepreneurs and carrying out entrepreneurial activities without forming a legal entity (hereinafter referred to as individual entrepreneurs), peasant (farm) farms that meet the conditions listed below.

Status restriction

For legal entities - the total share of participation of the Russian Federation, constituent entities of the Russian Federation, municipalities, foreign legal entities, foreign citizens, public and religious organizations (associations), charitable and other foundations in the authorized (share) capital (unit fund) specified legal entities shall not exceed twenty-five percent (excluding assets of joint-stock investment funds and closed unit investment funds), the share of participation belonging to one or more legal entities that are not small and medium-sized businesses should not exceed 49% (this restriction does not apply to business companies whose activities are in practical application (implementation) of the results of intellectual activity (programs for electronic computers, databases, inventions, utility models, industrial designs, selection achievements, integrated circuit topologies, production secrets (know-how)), the exclusive rights to which belong to the founders (participants) of such economic companies - budgetary scientific institutions or scientific institutions created by state academies of sciences or budgetary educational institutions of higher professional education or educational institutions created by state academies of sciences of higher professional education).

(paragraph 1 of part 1 of article 4 of the 209-FZ "On the development of small and medium-sized businesses in the Russian Federation").

Limitation on the number of employees

Depending on the average number of employees for the calendar year, enterprises are divided into [2]:

• micro-enterprises - up to 15 employees;
• small enterprises - up to 100 employees inclusive;
• medium-sized enterprises - from 101 to 250 employees inclusive.

Revenue cap

Since April 4, 2016, according to the Decree of the Government of the Russian Federation of April 4, 2016 N 265 "On Income Limits, obtained from entrepreneurial activity, for each category of small and medium-sized businesses "income limits, received from the business for the preceding calendar year, determined in the order, established by the legislation of the Russian Federation on taxes and fees, summed up for all activities carried out and applied for all tax regimes, for the following categories of small and medium-sized businesses:

• micro-enterprises - 120 million rubles;
• small enterprises - 800 million rubles;
• medium-sized enterprises - 2 billion rubles.

Lending to small businesses

The largest banks in the market for lending to small and medium-sized businesses in the Russian Federation in 2009 (the rating is relevant for 07.04.10), thousand rubles:

• Sberbank 191 732 686.87
• Bank Uralsib 217 346 252.27
• Rosselkhozbank 200 140 044.30

Federal Small and Medium Business Support Program

White Paper: Federal Small and Medium Business Support Program

2024: Head of the Ministry of Digital Development Maksut Shadayev: Small and medium-sized businesses will not pay for the use of software from manufacturers who left Russia

The initiative of the Ministry of Digital Development of the Russian Federation to introduce fees for the use of foreign software will not affect small and medium-sized businesses. The department announced this on August 9, 2024. Read more here.

2023

26.9 million people are employed in small and medium-sized businesses in Russia

As of the end of 2023, the number of people employed in small and medium-sized businesses in Russia was 26.9 million people. Such data in early June 2024 was published by the Accounts Chamber.

According to the Kommersant newspaper, the disclosed values ​ ​ do not correspond to the statistics of the Ministry of Economy. Earlier, this department stated that the number of people employed in the field of small and medium-sized enterprises (SMEs) in the Russian Federation by the end of 2023 reached 31.27 million people. Thus, the indicator of the Accounts Chamber is about 14% less compared to the estimate of the Ministry of Economy. The overestimation of the value of the ministry in the joint venture is explained by the fact that the "validity of the calculation" was not provided in the national project.

As of the end of 2023, the number of people employed in small and medium-sized businesses in Russia was 26.9 million people

The Auditor of the Accounts Chamber Danil Shilkov notes that the growth in the number of employees in small and medium-sized businesses is ensured mainly due to the intensive registration of the self-employed. So, by the end of 2023, their number with a plan of 2 million people rose to 9.3 million. However, of these, more than a third, or over 3.1 million, are self-employed only nominally.

It is also said that the information contained in the Register of SMEs - recipients of support is unreliable and incomplete. Therefore, according to Shilkov, this base cannot be used as a source of information for "making further management decisions."

The Ministry of Economy agrees with the validity of the criticism. The department says that the existing problems are being solved jointly with the Federal Tax Service. In particular, since 2024, for a more accurate analysis, the ministry has switched to a new counting method, which "takes into account only active self-employed who have made at least one transaction." Taking into account these amendments, it is alleged that "the self-employed and SMEs account for about 27 million people." This value is generally consistent with the assessment of the Accounts Chamber.^[2]

The number of exporters among small and medium-sized businesses increased by 60% to 83 thousand companies

In 2023, relative to 2020, the number of exporters in Russia among small and medium-sized businesses increased by 60%, to 83 thousand. Such data at the end of February 2024 were provided by the Director General of the Russian Export Center Veronika Nikishina.

As practice shows, almost any entrepreneur who is able to produce competitive products and who has a desire can become an exporter. Exports are additional markets, they are development and expansion. And our main task is to convey to business that exporting is not as difficult as it seems, "he stressed.

In 2023, relative to 2020, the number of exporters in Russia among small and medium-sized businesses increased by 60%

As of April 2024, the share of small and medium-sized enterprises (SMEs) in Russia that are engaged in exports reached 14%. For comparison, a year earlier this figure was approximately 10%. Such data are given in the materials of Promsvyazbank (PSB) and Opora Rossii, published on May 22, 2024.

The study notes that about 25% of SMEs are engaged in the import of goods, services or components into the Russian Federation by the end of April 2024 against 18% a year earlier. The authors of the report say that companies have managed to adapt their foreign trade strategy to sanctions restrictions - the share of exporters and importers has grown almost one and a half times on an annualized basis.

More than half of SMEs engaged in export supply products or services to Belarus (53%) and Kazakhstan (57%), and every fifth company to China (21%). Another 9% of SMEs reported on the supply of products to Armenia, 7% - to Turkey, 6% - to India.

Economic ties with Belarus and Kazakhstan are strengthening, every second entrepreneur exports in this direction. Supply channels to China are expanding: twice as many SMEs as in May last [2023] export goods and services [to this country], the study says.

Friendly countries buy products, cosmetics, metals, fertilizers, as well as office software. Moreover, the involvement of Russian SMEs in foreign trade operations as a whole returned to pre-crisis levels at the end of 2020. Yegor Diashov, chairman of the financial markets commission of the Moscow branch of Opora Rossii, general director of the Dilot investment company, believes that the increase in the number of SME exporters is associated with ongoing state support and national projects such as International Cooperation and Export and SMEs and support for individual entrepreneurial initiative^[3]

44% of new businesses in Russia for the year registered people under the age of 35 years

In early March 2024, the Business Wednesday company, a member of Sberbank, published the results of a study on the situation with business registration in Russia. According to experts, 44% of new companies in 2023 were launched by people under the age of 35. The share of business registrations by entrepreneurs aged 18 to 25 was 15%. The share of those who in 2023 decided to open their own business at the age of 18-19 is 3.5%.

When compiling this study, Business Environment analysts studied the dynamics of registrations of 156 thousand individual entrepreneurs and LLCs through the online service "Business Registration and Remote Account Opening" in 2023, where individual entrepreneurs accounted for 86%, LLCs - 14%.

In 2023, almost half of new businesses were launched by people under the age of 35

According to the analytical report, the largest number of new companies in 2023 appeared in,,,,, To Moscow Moscow region Krasnodar Territory St. Petersburg Rostovskaya Sverdlovsk regions and the republic. Bashkortostan The largest increase (+ 26%) by 2022 showed. Moscow region

The ratio of men to women among those who established new companies in 2023 was 56% to 46%, respectively. At the same time, the share of representatives of the weaker sex for the year increased by 2 pp. The most "female" region in terms of doing business in 2023 was the Republic of Buryatia: here the share of entrepreneurs was 55%, follows from the materials of the "Business Environment."

The most popular business area that entrepreneurs registered in 2023 was retail. Then there are passenger and cargo transportation, wholesale trade, construction and real estate operations, catering, personal services, trade in cars and motorcycles, as well as their repair. Closes the top ten, as in 2022, the field of information technology.

State corporations in Russia increased by 13.5% the purchase of goods and services from small businesses to 8 trillion rubles

According to the results of 2023, state corporations in Russia increased by 13.5% the purchase of goods and services from small and medium-sized businesses (SMEs) compared to the previous year - up to 8 trillion rubles. First Deputy Prime Minister of the Russian Federation Andrei Belousov cited such data in mid-February 2024.

"The development of the procurement system and ensuring the participation of SME suppliers in them is one of the most important state support measures implemented within the framework of the specialized national project. The volume of goods and services supplied by small and medium-sized enterprises by 223-FZ is consistently growing. At the end of 2023, the record for the entire period of the quota for purchases from SMEs was updated, "said the Deputy Prime Minister (quoted by the press service of the Cabinet of Ministers).

State corporations in Russia in 2023 increased by 13.5% the purchase of goods and services from small and medium-sized businesses

The government's website also published statistics according to which Russian Railways, Aeroflot, Rostelecom and Rosseti became the leaders in terms of purchases from small and medium-sized businesses in 2023. Most of all, such suppliers were purchased by Moscow (2.1 trillion rubles), St. Petersburg (682 billion rubles) and the Moscow region (362 billion rubles).

As for the products that small and medium-sized businesses supply in the public sector, in 2023 the leaders were manufacturing products (the volume of purchases for the year amounted to 2.45 trillion rubles), structures and construction work (1.9 trillion rubles), as well as services related to scientific, engineering and technical and professional activities (401 billion rubles).

According to the SME Corporation, at the end of 2023, the share of SME purchases from a single supplier decreased in Russia (to 8.5% from 9.5% in 2022) and the level of competition increased. In 2022, one purchase accounted for 2.15 applications, and a year later - 2.22 applications. At the same time, the total number of applications submitted for participation in the procurement of state-owned companies from small and medium-sized businesses in 2023 increased by 15%, to 349 thousand units.^[4]

Kalmykia, Chechnya and Dagestan topped the rating for the growth of entrepreneurs in Russia

On February 5, 2023, Tochka Bank issued a rating of the regions of the Russian Federation for the growth rate of the number of entrepreneurs. The leaders were:

• Chechnya (in 2023 the number of entrepreneurs in the republic increased by 10.7% compared to 2022);
• Dagestan (growth of 10.5% year-on-year);
• North Ossetia (8.5% increase);
• Trans-Baikal Territory (7.5% increase).

In Kalmykia, the number of online stores has immediately tripled - this is the highest figure among all business segments in the region. The second place in the opening of new companies was taken by the sphere of trade in non-food products (+ 41%) - the whole of 2023 there was an increase in turnover in this area. In third place in terms of the growth of new legal entities and individual entrepreneurs in Kalmykia - operations with real estate (+ 18.68%).

Rating of regions of the Russian Federation to the growth rate of the number of entrepreneurs

In Chechnya, the situation is similar: in 2023, the number of online stores increased 2.5 times. This is confirmed by fresh statistics: the number of sellers on Ozon and Wildberries in Chechnya in 2023 increased 3.8 times - this is the third indicator in the country. In Chechnya, companies from the field of sports, recreation and entertainment are increasingly opening - an increase of 12.7% year-on-year. Among the leaders are also wholesale trade and non-food trade - an increase of 8.16% and 4.56%, respectively.

In Dagestan, companies from the field of Internet sales and tourism are also in the top for discoveries. Thus, the number of online stores in the region over the year increased by 65%. In second place are travel agencies and tour operators (+ 28%), hotel business and hostels (+ 14%) close the top three.

In North Ossetia, the most companies from the field of sports, recreation and entertainment appeared in a year (+ 13%) - this is due to the active development of tourist projects. The second place was taken by companies engaged in cargo transportation (+ 11%) - the growth was due to an increase in the transit of goods through North Ossetia to Georgia. In third place are restaurants and cafes (+ 9%) against the background of an^[5]Russian Federation

In Russia, the number of small and medium-sized businesses increased to 6.31 million

By the end of December 2023, the Unified Register of Small and Medium-Sized Businesses of the Federal Tax Service has 6.31 million small and medium-sized businesses (SMEs) against 5.97 million a year earlier. The number of employees in such companies over the same period decreased from 15.1 million to 15.2 million people.

It also follows from the register of the Federal Tax Service that by the end of 2023, the Central Federal District (FO) accounts for 32% of representatives of small and medium-sized businesses. The share of the Volga Federal District was 17%, the North-West and South Federal District - 11% each. Another 10% of SMEs were registered in the Siberian Federal District, 8% - in the Ural Federal District, 5% - in the Far Eastern Federal District, 4% - in the North Caucasus Federal District.

According to the publication Forbes in the company, "Contour" the largest industry in terms of the number of small and medium-sized businesses is wholesale trade (534,558 organizations by the end of 2023). In second place is retail with 189,196 organizations.

At the same time, the number of legal entities for the year slightly decreased against the background of a significant increase in the number of individual entrepreneurs. The share of the latter among organizations increased by 4% in two years, to 57%. The influence of marketplaces is also obvious here, says Anton Yakovlev, an expert at Kontur. Focus. Designers, packers, photographers, lawyers and other employees are not required to trade on online sites, Yakovlev lists. And without full-time staff, it is easiest to conduct business through individual entrepreneurs.

In terms of the number of legal entities, two interconnected industries are in the lead - real estate operations (297,710) and construction (196,840), as well as education (117,572). The growth of the last segment is associated with the active development of private schools, which, among other things, offer distance learning, as well as the popularity of various kinds of educational courses - from culinary to music, Yakovlev said.^[6] 

The number of people employed in small and medium-sized businesses in Russia exceeded 30 million people. Regions

From September 2022 to September 2023, the number of Russians employed in the segment of small and medium-sized businesses (SMEs), as well as self-employed and individual entrepreneurs (individual entrepreneurs) increased by 8.5% and amounted to 30.5 million people. Such data in November 2023 are given in the Finexpertiza study.

As analysts noted in a report published on November 7, 2023, the total number of employees of SMEs, individual entrepreneurs and self-employed in recent years has been steadily growing and today accounts for about 40% of the total number of people employed in the economy. At the same time, employment in SMEs increases mainly due to an increase in the number of self-employed. By September 2023, there is an average of 5.5 employees per small or medium-sized enterprise, compared to 3.3 a year earlier.

Against the background of economic recovery and consumer demand, financial indicators of SMEs are also growing: since May 2023, revenue has been increasing, in September 2023, the growth in turnover per company amounted to 6.2% in real terms year-on-year, the study says.

The best dynamics of growth in the number of employees in small and medium-sized businesses was demonstrated Kalmykia by (+ 54.8%, or + 18.5 thousand people, by September 2023 compared to September 2022), Ingushetia (+ 44.9%, or + 7.8 thousand people) Dagestan and (+ 38.7%, or + 98.5 thousand people).

Employment in SMEs has decreased only in five regions - the Nenets Autonomous Okrug (-7.8%, or -710 people), the Kamchatka Territory (-6.6%, or -4.5 thousand people), the Chukotka Autonomous Okrug (-4.6%, or -341 people), the Magadan Region (-1.9%, or -627 people) and the Sakhalin Region (-0.6%, or -629 people).

In absolute terms, the largest increase in employees in SMEs was noted in Moscow (+ 354 thousand people), Moscow region (+ 161.4 thousand people), St. Petersburg (+ 147.2 thousand^[7]

Bill on electronic business registration submitted to the State Duma

Member of the State Duma Committee on Information Policy, Information Technology and Communications, deputy of the United Russia faction Anton Nemkin, first deputy chairman of the committee on information policy, information technology and communications, deputy of the New People faction Anton Tkachev and chairman of the committee on small and medium-sized enterprises, Deputy of the New People faction Alexander Demin introduced into the bill, which invites individual entrepreneurs and legal entities to register through a special system using an email address. This will allow you to determine the legal address of the organization based on the electronic platform. This was announced on July 11, 2023 by the press service of the State Duma deputy RFAnton Nemkin.

The main goal of the bill is quick and convenient business registration. The changes are proposed in the context of the digital transformation of the Russian economy, the popularization of remote forms of employment, as well as taking into account the request of small and medium-sized businesses to reduce costs. We are talking about spending, primarily related to the maintenance of office space, which many organizations working remotely do not actually use. As a study by the National Agency for Financial Research (NAFI), conducted in 2020, showed, 62% of representatives of micro and small businesses support the initiative to abolish the mandatory indication of the legal address when registering a company. At the same time, as an alternative to the legal address, they propose to use the taxpayer's office on the FTS website (38%) or the data of open bank accounts (37%) as a tool for identifying the company.

As the experience of the pandemic has shown, employees often work remotely even more efficiently than in the office. At the same time, the regulatory requirement for the availability of a place of registration entails significant costs for companies that must pay not only for renting office premises, but also for utilities, etc. Despite the fact that, in fact, these premises are almost empty, and all communication with employees goes through online meetings or meetings in coworking spaces, - said the deputy.

Thanks to the bill, registration of legal entities will be possible by e-mail address formed in a special system. At the same time, without specifying the place of residence or, at least, finding a representative of a legal entity and without confirming it, registration of a personal account in the system will be impossible in principle. This approach will help reduce the risks of not being able to determine who is running a legal entity. Also, the impossibility of conducting control measures by tax and other state bodies will be ruled out, "Nemkin emphasized.

As the authors of the bill note, in fact, it creates organizational prerequisites for registering legal entities at a virtual address. The specific procedure for electronic registration should be determined in the law on state registration of legal entities after the creation of the appropriate information infrastructure. The very procedure for "electronic" registration and the cases in which it is possible will be determined in the Law on State Registration of Legal Entities. This will require the development of a separate bill based on a comprehensive discussion.

In Russia, the number of new businesses in the IT industry increased by 17%

The number of new registered businesses in the IT industry increased by 17% in the first four months of 2023 compared to the same period in 2022. In general, the IT sphere remains the leader in this indicator - in total, more than a thousand new individual entrepreneurs and LLCs were opened during this period. Such data are given in a joint study of the Business Environment company and the Rambler & Co media holding, published at the end of May 2023.

"In 2022, this area became the leader in the growth of small businesses. The first four months of 2023 confirmed the growth in the popularity of the industry: in comparison with the same period in 2022, the IT sector increased by 17% and again became number one in terms of the growth of new businesses, "says the results of a study by Business Environment and Rambler & Co.

In the ranking of cities with the largest number of entrepreneurs who opened a business in IT, the first position is taken by Moscow. 57% of businessmen over 35 are concentrated there. Further, in second place, is St. Petersburg, followed by the Moscow and Leningrad regions, as well as the Krasnodar Territory, where the highest share of young entrepreneurs is 59%. Most new IT companies register men - 77% versus 23% among women.

Most of all, in the IT sphere, entrepreneurs are attracted by its popularity (41% of respondents answered this way), which, in their opinion, will continue for a long time, as well as the niches vacated after the departure of foreign vendors (the opinion of 39% of respondents). Among the important reasons for opening a new business in this area, 16% of the study participants indicated the country's need for high-quality and secure software.

"The growth of new businesses by almost 20% in just a few months is quite massive. However, it is not surprising, since demand, as we know, always gives rise to supply. Obviously, our camp today especially needs new high-quality digital solutions that will appear quite quickly and will ensure safe work in various sectors of the economy, including key ones, - said Anton Nemkin, a member of the State Duma Committee on Information Policy, Information Technology and Communications. - Perhaps we will not immediately notice the results of activities of these companies, as all of them will have to gain weight and establish themselves in the market. Nevertheless, in the foreseeable future, it seems to me that we will see a real boom in new IT solutions and products that we can introduce into our economy for its further development. "

According to the deputy, a large number of businesses will create the necessary competition in the market, which will help improve the qualities and reduce the cost of each individual product.

Along with the opening of new enterprises, the demand for specialists in the field of information technology is growing. According to Artem Kumpel, managing director of the Avito Rabota platform, the number of vacancies in the IT, Internet, telecom sector on the platform in the first quarter of 2023 increased by 51% compared to the same period in 2022. In general, at the beginning of May 2203, more than 40 thousand offers in the IT sphere were available to applicants on the platform, the expert shared.

In addition to IT (34%), 9% of respondents noted construction as a promising business sphere, 7% each - retail/wholesale trade and catering, 5% each - passenger and cargo transportation, trade in motor vehicles and motorcycles (as well as their repair), 1% - operations with real estate.

In general, during the survey, 20% of Russians noted that they are entrepreneurs. At the same time, a fifth of them are already engaged in a business in the field of software development.^[8]

The results of the study were obtained based on the results of an analysis of over 45 thousand. Individual entrepreneur and LLC opened through the Business Environment service (a subsidiary of Sberbank) from January to April 2023, as well as according to the results of a survey in which more than 46 thousand users of the assets of the Rambler & Co media holding took part. The survey of Internet users was held on Rambler & Co media resources from May 11 to 18, 2023^[9]

2022

Government purchases from small businesses in Russia increased by 13% and reached 4.3 trillion rubles

Small businesses and socially oriented non-profit organizations (SMP and SONKO) in Russia concluded 2.1 million state contracts for 4.3 trillion rubles in 2022, which is 13% more than a year earlier. This is stated in the report of the Ministry of Finance of the Russian Federation published at the end of May 2023 on the results of monitoring the procurement of goods, works, services carried out in accordance with the law "On the contract system" (44-FZ). Read more here.

The volume of purchases of the largest state-owned companies from small businesses in the Russian Federation for the year increased 1.6 times

The volume of purchases of the largest state-owned companies from small businesses in the Russian Federation in 2022 increased 1.6 times compared to 2021 and amounted to more than 7 trillion rubles. This is stated on May 15, 2023 in the message of the SME Corporation (engaged, in particular, in monitoring the fulfillment of requirements for the volume of purchases from small businesses). Read more here.

The adaptation of the Russian economy will depend on the functioning of SMEs, which provide about 40% of turnover

As of November 2022, the Russian economy is undergoing a difficult period of economic transformation, which has a multifactorial impact on small and medium-sized enterprises (SMEs). The pace of adaptation of the Russian economy will greatly depend on the successful functioning of SMEs, which provide about 40% of the turnover and the total number of employees. This was announced on November 17, 2022 by Interfax.

Moreover, in the context of the almost total coverage of large Russian business by sanctions, the role of SMEs in socio-economic development will increase.

Official data show that sanctions pressure and the worsening economic situation could not stop the progressive development of private entrepreneurship in Russia. The average number of SMEs registered monthly in March-September 2022 turned out to be 20% more than the indicator of the first two months of this year and 39% more than the average indicator of 2021.

Meanwhile, new economic challenges could not but push small and medium-sized businesses to clarify industry priorities. In this regard, data on the registration of new SMEs can be considered as an indicator of the formation of more favorable conditions for business in a number of industries during the period of economic transformation, on the one hand, and a decrease in the attractiveness of some markets, on the other. The analysis of the latest trends may be of interest to both investors and banks, as well as government agencies responsible for improving the mechanisms for supporting SMEs.

A number of indicators can be identified that determine the change in sectoral priorities of SMEs. Key of them are shifts in the sector's share in the total number of registrations in March-September 2022 compared to 2021, as well as the intensity of the creation of companies (per 1000 organizations). An additional indicator is the change in the average number of registrations per month to the level of January-February 2022. The results of the three quarters of 2022 show that SMEs respond quickly enough to changes in the business environment during the initial period of economic transformation.

About half of the new registrations are in only two sectors - wholesale and construction. It was these types of activities that managed to increase their shares to the greatest extent in 2022. The share of construction increased by 5.0 percentage points - to 23.3%, wholesale trade - by 1.5 percentage points, to 23.8%. At the same time, both sectors remained in the top three in terms of the number of registered SMEs per 1000 companies - 15.2 and 10.7, respectively.

Despite economic difficulties, the construction sector provides favorable opportunities for the development of SMEs. Substantial state support (preferential mortgages, financing of large infrastructure projects, incentives for regional construction, simplification of regulation, etc.) made the construction sector one of the drivers of the economy. The turnover of the sector's companies in January-August 2022 increased by 8% at the annual level. The rapid growth of housing construction continued, which provides most of the construction contracts. At the same time, the commissioning of residential buildings increased 1.3 times. The sector continues to be profitable: its financial result (pre-tax profit minus loss) in the 8 months of 2022 was 4.2 times higher than the level of 2021. However, construction has not yet managed to cope with the problem of payments: the level of delinquency on payables and receivables, as well as loans and loans remains high. In addition, there is a deterioration in payment discipline in general and in SMEs in particular. Thus, according to SPARK-Interfax, the share of small and medium-sized businesses with the High Risk Payment Discipline Index increased from 10% in February to 12% in September 2022.

The rapid growth of SME registrations in the wholesale sector was stimulated, apparently, by a violation of the established supply chains and the emergence of a shortage of a number of types of raw materials, materials and equipment, which were provoked by the imposition of sanctions. Meanwhile, the growth dynamics differed across individual segments. The average monthly number of SME registrations in the trade in construction materials increased at a faster pace (by 30% in March-September 2022 compared to January-February), agricultural raw materials and food (by 30%), chemical products (by 29%). The trade in fuel and energy goods, mechanical engineering products, metals and metal products aroused less interest among small and medium-sized businesses. The wholesale sector maintained profitability, although turnover slightly exceeded the indicators of the beginning of the year. The financial condition of organizations was quite stable if assessed on the basis of the SPARK-Interfax Financial Risk Index. The share of small and medium-sized businesses with a high risk of losing solvency on the horizon in a year and a half was only 8%, compared with 15% in the manufacturing industry and 12% in transportation and storage. However, problems in the economy could not but affect payment discipline. The share of SMEs with the High Risk Payment Discipline Index increased from 9% in February to 12% in September 2022.

The third priority for SMEs during the transformation period was the information technology sector, which showed the fastest growth in the number of new registrations (by 81%). The sector's share reached 4.1%, up 0.8 percentage points. The launched system of state support, the improvement of which in the current conditions remains one of the priorities of Russia's economic policy, also contributes to the growth of the attractiveness of the IT sector for SMEs. It is important that the IT sector has so far successfully resisted the impact of sanctions. The turnover of IT companies still noticeably exceeds the level of January-February 2022. So, in August, the sector's turnover was 17% higher than the average indicators of the beginning of the year. Although there are certain negative trends in the field of payments, expressed in the acceleration of the growth rate of overdue payables and receivables, as well as debt on loans and loans, the level of delay remains insignificant. The share of SMEs with the High Risk Payment Discipline Index even decreased - to 4.9% in September 2022, after a slight increase in the previous months.

Registration statistics also show a minimal increase in the relative interest of SMEs in the transportation and storage sector. The sector's share in the total number of registrations increased by less than 0.1 percentage points - to 7.2%. The attractiveness of the sector is associated with both the emerging logistics problems and the reorientation of freight flows to the Asian markets. Since the opportunities for small and medium-sized businesses in such industries as railway, pipeline, aviation transport are limited, the outstripping growth in the number of registrations was noted in the field of warehousing and auxiliary transport activities (by 22%). This industry, which accounts for about 23% of SMEs in the sector, is characterized by good financial stability, high return on assets, low levels of overdue payables and receivables, as well as debt on loans and loans. The SPARK-Interfax financial risk index among SMEs is only 8%. The vulnerability of the business remains the deterioration of payment discipline. The share of SMEs with the High Risk Payment Discipline Index reaches 15.0%. At the same time, growth in SME registrations on the freight automobile, transport the largest industry within the transport sector (about 67% of SMEs), was moderate. Their number increased in March-September 2022 by only 9%.

The most significant decrease in relative attractiveness was recorded in the trade in vehicles, as well as in the activities of professional, scientific and technical, by 4.3 and 1.5 percentage points, respectively. The aggravation of problems in the automotive industry due to violations of the supply of components, a reduction in the import of finished cars, as well as the departure of Western companies seriously undermined business opportunities in this market. In the summer months, vehicle trade turnover was almost a third below the level of the beginning of the year. Although professional, scientific and technical activities remain one of the major sectors for the creation of SMEs (more than 7% of the total number of registrations), interest in it was less significant compared to 2021. The determining negative contribution to the position of the sector was made by the reduction of registrations in the field of architecture and engineering design (by 9%), while indicators in the field of law, accounting, consulting, scientific research managed to maintain growth. A particularly rapid increase in SME registrations (by 41%) was noted in the field of R&D, which may have been stimulated by the needs of accelerated "import substitution" in a wide range of products and technologies.

The study of the dynamics of registrations in a number of industries also reveals a noticeable drop in their attractiveness for registering SMEs, which was not so noticeable at the level of sector statistics. In particular, there was a significant decrease in the number of monthly registered companies in forestry and logging (by 74% in March-September 2022 in relation to the beginning of the year), in the production of leather and leather products (by 27%), in the production of other non-metallic mineral products (by 14%), in the production of rubber and plastic products (by 13%), in the production of drinks (by 8%), in the field of employment (by 7%), in the field of tourism (by 7%).

Thus, an analysis of statistics on new registrations of SMEs for the three quarters of 2022 shows that sanctions pressure and complications of economic conditions not only did not lead to the curtailment of small and medium-sized businesses, but also created new niches for the accelerated development of private entrepreneurship in Russia. Along with the rapid increase in the number of registrations, there are shifts in relative industry attractiveness, which have already manifested themselves in a noticeable increase in SMEs' interest in construction, wholesale trade, and information technology. Meanwhile, it is important to monitor the decline in business interest in a number of important industries in order to possibly adjust existing regulation, which would minimize the potential negative impact of this trend on some markets for goods and services, as well as employment.

Growth in the number of employees in SMEs by 0.5 million to 22 million people, not counting self-employed

The number of people employed in the SME sector, despite the conflict in Ukraine, increased - in the second quarter of 2022 it amounted to 22 million people, not counting the self-employed. This is half a million more than in 2021.

2021

Almost a third (30%) of SME owners have already completely switched to cashless payments

On January 21, 2021, the conclusions of the Visa study became known, according to which Russian business also assessed the possibilities of e-commerce. Three out of five (58%) of the surveyed owners of medium and small enterprises said that the transition to new payment methods has become the main driver for the growth of their business. A quarter (23%) expect that the possibility of non-cash payment will attract new customers to them in 2022.

Almost a third (30%) of SME owners have already completely switched to cashless payments. According to this indicator, Russia ranks second among the markets studied.

Russian small and medium-sized businesses are leading among other markets in the number of accepting contactless payment methods (54% versus 39% in the world). Read more here.

26% of entrepreneurs would trust artificial intelligence to communicate with customers

On October 13, 2021, Platforma (Big Data Platform) analysts were joined by the results of a study of the attitude of small and medium-sized businesses to artificial intelligence (AI) and big data. More than a third of respondents (36.8%) believe that the work of AI requires control and verification of results. But every fifth (22.1%) entrepreneur is already ready for October 2021 to replace a personal assistant with a smart program for fulfilling personal instructions.

The opinion on the confidence of Russian business in technology is divided. Only 22% of entrepreneurs surveyed are ready to unconditionally trust the conclusions of artificial intelligence. The main argument for them is the accuracy of the mathematical models and big data underlying AI. At the same time, the same number (21.8%) of the study participants assign the role of a consultant to artificial intelligence: a person should make conclusions and decisions in business, AI only helps and recommends something.

The vast majority (73%) of SMEs have no experience in their own development software or application of big data for business. Entrepreneurs are used to using ready-made solutions to automate various processes. For example, almost 40% databases of enterprises managed to automate the distribution of notifications, a quarter (24.4%) of companies set up a customer update (24.4%), almost the same (22.5%) began to monitor the quality of the sales department in real time (22.5%).

The majority of entrepreneurs assess the experience of automation positively - 29.9% believe that they have noticeably improved the speed of solving problems, and 27.2% that they managed to exclude the human factor from important and accurate processes.

If the business had the opportunity to delegate specific tasks to artificial intelligence, then first of all, entrepreneurs would refuse to communicate with customers and work with reviews (26.1%). 23% of companies are ready to entrust AI with assortment management, the same number are the tasks of a personal assistant (calendar maintenance, appointment, regulations, ticket ordering) - 22.1%. The TOP-5 of tasks for artificial intelligence also included sales management (17.4%) and the dismissal of employees (13.1%). In the case of the latter, entrepreneurs are confident that the solution based on the analysis of big data on the work of a particular employee will be the most objective for business.

Tasks that business wants to delegate to artificial intelligence

The survey involved 1,238 entrepreneurs and heads of small and medium-sized businesses aged 20 and over. Research regions - Moscow, St. Petersburg, Volgograd, Kazan, Voronezh, Yekaterinburg, Krasnodar and other million-plus cities.

The study was conducted by online questionnaire in October 2021.

Raiffeisen Bank named the main fears of small businesses in Russia

Raiffeisen Bank on April 23, 2021 named the main fears of small businesses in Russia.

Three-quarters of Russians would like to open their own business, but they are stopped by fear of bureaucracy, financial risks and a lack of experience in operating processes, a study by the Raiffeisen Bank "The case is small: why Russians are afraid to open their own business" showed. Future entrepreneurs are motivated by the opportunity to earn more money and do what they love, but the situation in the economy and the need to submit a large number of reports that are difficult to work with repel. Raiffeisen Bank asked business owners and individual entrepreneurs to tell what they were afraid of at the start, what fears were realized and how they managed to cope with risks and difficult situations.

Income growth, financial independence and a dream job are the top 3 reasons to start a small business. Most often, Russians under the age of 45 think about their business - almost 90% of people in this age group would like to engage in their projects. At the same time, almost half of them are ready to combine them with work in hiring. Marital status also affects interest in the career of an entrepreneur - the most motivation for those who are engaged, but have not yet married.

The most popular business segments among Russians are construction, repair, design, cafes, restaurants, selling food and IT solutions. Areas such as tourism, education, the arts and waste management are also popular.

For the start, many would have enough 100 thousand rubles - 14% of respondents estimated their initial capital at such an amount. However, most aim at an amount of 100 thousand to 1 million rubles.

However, many put off business ideas because of real risks, but more often because of fears that seem insurmountable.

Russians call the economic situation the main barrier to opening their own project - 31% of respondents called it inappropriate for doing business. In second place is a lack of money, and in third place is a shortage of ideas. In the ranking of psychological barriers, the fear of losing all money and getting into debt leads. Slightly less future entrepreneurs are afraid of problems with tax and accounting, as well as lack of knowledge and experience.

We open accounts for a huge number of startups. And the founders tell us how risky and difficult the process of creating a business from scratch is, "says Denis Skokov, head of small business at Raiffeisen Bank. - They spend all their efforts on organizing work, the first sales and search for investors, and they have no time to deal with pieces of paper that always accompany any business. The good news is that the entire bureaucracy in our time can be transferred to online services. Often you can get everything you need to manage the bureaucracy remotely online right at the bank in which you open an account, and this can noticeably reduce the administrative burden,

2020

Small business revenue collapsed by 2.8 trillion rubles

The revenue of small businesses in Russia at the end of 2020 collapsed by 2.8 trillion rubles, experts from the National Rating Agency (NRA) calculated.

According to the data cited by Izvestia, wholesale trade suffered greatly, where turnover fell from 6.7 to 5 trillion rubles. The largest drop in the turnover of small enterprises was recorded in the third quarter of 2020. The most affected was the tourism industry, where the revenue of enterprises decreased by 70%.

According to the Center for Strategic Research, the number of people employed in small and medium-sized enterprises (SMEs) in 2020 decreased by 1.1 million people. The Ministry of Economic Development does not agree with these data and told the newspaper that in 2020 the number of personnel in this segment increased by 170 thousand people compared to 2019. The activities of SMEs during this period were relatively stable, including due to an increase in the availability of loans and a halving of insurance premiums, the press service of the department said.

As the financial support from the state ceased, SMEs began to take more loans. So, in 2020, the number of loans issued increased by 80% compared to 2019, according to NRA data. At the same time, the average loan size decreased by 45%, from 7.29 million to 3.98 million rubles. Despite the increase in lending volumes, delinquency on them did not increase due to restructuring measures, the study said.

In 2020, there was an almost twofold increase in lending under special programs, the press service of St. Petersburg Bank said. At the same time, the number of loans and their average size increased compared to 2019. Growth was 30% and 40%, respectively.

The volume of loans issued by small and medium-sized agribusiness last year amounted to more than 260 billion rubles, which is 44% higher than the same indicator in 2019, the Rosselkhozbank told Izvestia.^[10]

Small and micro businesses have not yet recovered to pre-crisis levels

Small and micro businesses in Russia began to recover after the lifting of most restrictions related to the spread of the coronavirus. However, there is no talk of returning to pre-crisis turnover, Raiffeisenbank analysts found Raiffeisen Bank, having studied the activity of more than 130 thousand companies from the small and micro business segment throughout Russia.

Since the beginning of 2020, receipts to customer accounts in the small and micro business segment have grown steadily. In March, despite the emergence of restrictions related to the spread of a new type of coronavirus, receipts increased by 23.5%. The fall began in April and continued throughout May. In June, the trend changed, but so far companies cannot return to March indicators. So the incoming turnover on the accounts of entrepreneurs in June increased by 26% compared to May, but this is 10% lower than in March 2020.

In June, many entrepreneurs were able to return to work - receipts to accounts resumed. And those who continued to work during the period of restrictions increased the number of transactions. However, turnover did not recover to pre-crisis levels in all regions. Siberia and the Urals suffered the least, and the fall is felt the most in Moscow.

In June, company turnover in most cities grew. The strongest increase was observed in Anapa, Kazan and Tomsk. Active recovery went on in Perm, Ufa, Volgograd, Pyatigorsk, Smolensk and Moscow.

Ministry of Economic Development announced plans to monthly update the register of SMEs

On August 14, 2020, it became known that the Ministry of Economic Development of Russia and the Federal Tax Service are working on the issue of a monthly update of the Unified Register of Small and Medium Enterprises. This was reported to Vedomosti by a representative of the ministry.

"The Ministry of Economic Development of Russia, together with the Federal Tax Service of Russia, is working on the possibility of a monthly update of the register. Thus, the risks of exclusion from the register of entrepreneurs in August will be minimized, "‒ ministry spokesman said.

The tax service publishes updated data in the register of SMEs monthly on the basis of information about new registered legal entities and individual entrepreneurs or about the termination of their activities, manufactured products or participation in public procurement. But the very inclusion of companies in the register, which allows companies to receive significant benefits, occurs only once a year ‒ August 10, on the basis of tax reports provided to the Federal Tax Service before June 30. Because of this, companies cannot receive timely state support and benefits, Maria Glukhova, vice president of the Russian Union of Industrialists and Entrepreneurs, told Vedomosti. In her opinion, if the register is updated once a month, this will provide the registry with the necessary dynamism and more effective access for SMEs in case of receiving support or other benefits that are provided to SMEs. Since the criterion ‒ precisely the presence of companies in the register.

In 2020, due coronavirus to the pandemic, SMEs are allocated a significant number of benefits and support measures. In addition to the "supervisory holidays," a lower income tax rate than that of large businesses, and the expansion of access to public procurement government introduced additional measures to stimulate SMEs. For example, companies that are included in the register of SMEs and have OKVED industries, included in the list of victims of coronavirus, they can receive a subsidy for the payment of the minimum wage to employees, provided that employment remains at the level of 90% of the indicator as of April 1, 2020. In addition, for small businesses, reduced the rate on insurance contributions from 30 to 15%, provided the opportunity to lease on preferential terms state and guarantees in the field. bank credits

As of August 10, 5.6 million companies were included in the register of SMEs, in which 15.52 million people work. The number of companies in the register for the month decreased by 7.6% compared to July.^[11]

Raiffeisen Bank: small business plans to restore turnover by the end of the year

On June 9, 2020, it became known that according to a survey of company owners conducted by Raiffeisen Bank, most entrepreneurs from small and micro businesses expect to restore the turnover of their projects by the end of 2020. As support measures, they are waiting for preferential rates for renting premises and reducing the bureaucratic burden. During the quarantine period, 40% of respondents were able to transfer many processes and employees online, and this helped to preserve the business. However, after the restrictions are lifted, 65% of entrepreneurs want to return to their usual life and restore offline work.

As reported, the restrictions associated with the spread of the coronavirus did not affect only a third of small businesses. Another 2% were even able to increase turnover and increase the client base. The majority - 65% - faced losses or other negative events.

The main means to preserve and support the business was the transfer of employees and processes online, in whole or in part - this was the answer of 40% of respondents. 16% were looking for projects that were relevant at the time of quarantine, and the main business was paused. Another 13% cut employees. 29% noted that practically nothing has changed in their business - their restrictions either did not affect them, or acted for a short time.

The digital format is now used in the most unexpected segments - for example, an online football school has appeared. Many had to master these channels from scratch, self-isolation forced the process. For June 2020, almost everyone can peer to simple landing through a designer, set up targeted advertising on the Internet, embed payment using a QR code on the site, and so save on acquiring. Quarantine has also changed our priorities: for example, we at the bank thought for a long time about making the call center remote, and due to restrictions, we transferred it to this format in a few weeks. The same applies to other tasks: as of June 2020, we introduced the formation of a declaration in online accounting and free delivery of certificates and statements so that customers leave their homes less often. Market conditions are changing the vector of development of many companies, and this applies primarily to services. told Denis Skokov, head of the small business department Raiffeisen Bank

The top processes that entrepreneurs were able to transfer online were: exchange of documents with the bank and other counterparties, accounting, exchange of documents with the tax office and interaction with other government agencies.

Every fifth entrepreneur would like to refuse to rent an office in conditions of restrictions, but could not agree with the landlord. 60% retained the premises in full. Another 12.5% abandoned the office completely and do not plan to return. And 7.5% of respondents temporarily do not rent a room - furniture and equipment for June 2020 are in stock.

Without "leverage," that is, early withdrawal from the contract or completion of the terms and conditions of the contract, it is difficult for the tenant to get a discount, says Natalya Nikitina, partner, head of the office real estate department at Cushman & Wakefield. According to the company, owners of class B offices and landlords of small space in class A are more willing to give discounts for the time of isolation, unlike owners of class A office real estate.

They most often meet halfway if the client has such a lever, that is, for example, the lease agreement will soon end, or if the client has the possibility of early exit. The reasons why the owners are guided by June 2020 are their debt burden and obligations to the bank. explained Natalia Nikitina, partner, head of office real estate at Cushman & Wakefield

Against this background, the demand for self-storage solutions has grown. As Mikhail Semenov, CEO of the warehouse service with QB delivery, noted, from March 2020, a lot of furniture, office equipment and other office utensils began to arrive for storage - the share of such orders increased by 30%.

Somewhere we took out the entire offices, somewhere - several separate premises, because the client moved to a smaller space. But some customers, after settlements, realized that their things were more profitable to sell than to keep a few months of uncertainty. added Mikhail Semenov, warehouse service with QB delivery

Most of the business owners surveyed did not use salary loans and credit holidays. 57% of respondents do not want to restructure the loan or take holidays, fearing to spoil the credit history. Only 8% received a deferral on loan payments. 34% said they could not agree with banks on the necessary conditions. Not everyone needs loans for salaries: about 3% of respondents received such a loan, 64% said that they are still doing their own, and 33% for various reasons did not receive a loan.

Most of the appeals come from borrowers from industries that have suffered the most from restrictive measures aimed at containing the coronavirus, said Yulia Yakupova, a leading analyst on bank ratings at Expert RA. These are industries such as non-food retail, restaurant and cafe activities, tourism, hotel business, transport and transportation, as well as the provision of various services (beauty salons, dry cleaning). The current restrictions also had a negative impact on borrowers who are engaged in the construction and rental of real estate, the expert added.

Credit holidays can only be received by companies from the affected industries, but the turnover decreased for everyone. Therefore, other mechanisms are needed if suddenly, according to some formal criteria, the company is not suitable for this program. noted Denis Skokov, Head of Small Business at Raiffeisen Bank

According to the Expert RA forecast, entrepreneurs will continue to use the opportunity to restructure the loan.

It will take a certain time to recover the economy, while borrowers took loans based on other expectations for the macroeconomic situation. In addition, the debts accumulated during the pandemic will not soon allow entrepreneurs to work at a loss, so the possibility of reducing current loan payments will be in demand. told Yulia Yakupova, leading analyst on bank ratings of the agency "Expert RA"

The index of business activity of small and medium-sized businesses fell to the lowest values ​ ​ since 2014

These are the results of a monthly survey of entrepreneurs conducted by Promsvyazbank together with Opora Rossii and the Magram Market Research agency, RBC reports . If in January 2020 the index reached a value of 51.4 points, then in March it amounted to 45, and in April - 38.5. This indicator is the minimum for the entire time of the survey, that is, since 2014.

Experts state that in April of this year, the number of small and medium-sized businesses that fired part of the employees increased. Their share reached 35%, another 31% said they planned state cuts in the coming quarter.

In March 2020, the share of companies that fired employees did not exceed 15%. Due to restrictions against the background of the spread of coronavirus infection, demand began to fall and business activity slowed down. As a result, the heads of enterprises began to send employees on unpaid leave, conduct layoffs.

Small and medium-sized businesses demonstrated a kind of anti-record in the sales sector. Revenue fell in 78% of respondents, 60% expect further income cuts in the near future. At the same time, the fall in sales in the segment of small and medium-sized businesses has been noted since the end of 2019.

Micro-enterprises suffered the most from the economic consequences of quarantine, among them 82% of respondents noted the fall. In the small and medium-sized businesses sector, the decline was 74 and 75%, respectively.

2019

Small business activities in Russia

Raiffeisen Bank ^[12] the main activities of their clients from small businesses and found out which of them are the most popular in Russia, and whether there are features depending on the region or specific city.

Raiffeisen Bank serves 120 thousand small business customers in 43 cities with branches, and in more than 100 cities of Russia - remotely. And in all regions, the distribution of industries in which our clients work is approximately the same. Wholesale trade (22%), construction (15%) and retail trade (11%) were among the top 3 most common industries throughout Russia. The share of companies that provide transport services amounted to 10% of the total number of customers. Real estate closes the top five most popular activities, it was indicated as the main OKVED ^[13] 5% of Raiffeisen Bank clients.

The interests of small businesses may still differ depending on the region. For example, in Anapa, the largest share of all types of activities is occupied by catering enterprises (OKVED 56.10), which is logical for a resort tourist city with many cafes and restaurants.

In Moscow, as in many regions, construction is in first place in popularity (OKVED 41.20), but advertising services occupy the second largest share of all industries in the region (OKVED 73.11). In none of the regions, advertising is one of the five popular activities, which allows us to talk about the concentration of advertising agencies in Moscow.

In Belgorod, Zheleznogorsk, Orel, the leading place is occupied by cargo transportation (OKVED 49.41) with more than 10% share of all industries in each region (Belgorod - 13%, Zheleznogorsk - 14%, Orel - 10%). These regions are noteworthy precisely because cargo transportation occupies more than 45% of the top 5 most popular industries in the region, and in Zheleznogorsk even more than 50%. This shows that this type of activity is much more popular than the rest of the TOP 5 in the region.

The IT industry has not yet become a leader in any region of Russia, however, there are five cities in which computer software companies (OKVED 62.01) are at least in the top 10. Kazan and Oryol share the first and second places among themselves, IT in them occupies the eighth position in terms of the share of all industries in the region. They are followed by Moscow, Saratov and Tomsk (10th place).

"Small business pulse": threat No. 1 - a decrease in the purchasing power of the population

Alfa-Bank presented the Pulse of Small Business study in December 2019. The ^[14], Reflecting the</ref> moods of entrepreneurs in the first half of 2019. Small businesses have increased pessimism regarding both the current situation in the economy (index minus 73) and the situation in their own company (minus 17). Small businesses were set up more negatively only in the crisis year of 2015.

However, entrepreneurs retain faith in the future - macroeconomic and market expectations have improved for the first time in two years. As a result, the total small business sentiment index in June 2019 amounted to minus 32 points, remaining at the level of the end of 2018.

Main trends:

• 86% of respondents believe that the current economic situation in the country hinders business development. 82% note a decrease in purchasing power. More companies are recording a decline in profits, the average check and the number of customers.
• The reduction in consumer demand, the tax burden (the effect of raising VAT to 20%, as well as - indirectly - the effect of the mandatory introduction of online cash registers in small retail), the aggravation of competition for a client with large companies are the main problems of small businesses. Representatives of retail and construction are most pessimistic.
• In 2019, small businesses had a new alarm - chipping/labeling clothes entered the top 5 problems called entrepreneurs.
• The main task of small businesses is to save customers. To do this, entrepreneurs intend to improve the quality of service, expand the line of goods/services, change pricing and trade formats, taking into account new consumer requests.
• The number of respondents who perceive state support as a driver of small business has noticeably decreased. The current support programs have not yielded a noticeable result, small businesses do not believe the rhetoric of the state to reduce the burden on business.
• The development of small businesses can be helped by a decrease in the tax burden, an increase in consumer demand, and a softening of the banking policy for lending to small businesses.

The No. 1 threat to small businesses is a decrease in purchasing power and demand for goods/services. In 2019, the share of entrepreneurs who called this the main problem increased sharply (48% versus 37% at the end of 2018). The decline in purchasing power comes to the fore in the list of small business problems. A high tax burden worries 49% of respondents (this share has not changed). In third place is the lack of funds for development (35%).

The increase in VAT and the slowdown in the growth of the Russian economy (0.7% in annual terms in January-June 2019) increased the pessimism of entrepreneurs. The economic situation as a whole indicates a low level of aggregate demand in the economy. Small businesses continue to operate in unfavorable environmental conditions, and internal growth reserves are almost exhausted.

The current economic situation in the country slows down business development, 86% of respondents believe, and will deteriorate in the next 6 months (52%). In the first half of 2019, the purchasing power of the population in the country decreased (82% of respondents), and will continue to decline (54%).

At the same time, the share of those who expect an improvement in the situation in the next six months has noticeably increased. This is seasonal optimism - the second half of the year is traditionally more active, the growth rate in the second half of the year is stimulated by an increase in budget expenditures, as well as the effect of a decrease in the key rate of the Central Bank.

However, more than half of entrepreneurs still expect the situation to deteriorate both in their industry and in the country as a whole.

In the industry context, the most pessimistic assessments are given by representatives of retail and construction, most acutely experiencing the consequences of a decrease in demand, an increase in the tax burden and increased competition with large businesses. The least pessimism is noted in the IT sector. Over the years, the growth of demand for IT services, the low share of operating costs, the ability to work with customers remotely and integrate into any market, tax incentives - all this allows the IT sector to become one of the most promising segments of small and medium-sized businesses.

Describing the situation in their own company, 53% of respondents recorded a decrease in profit, 32% - a decrease in the average check, 35% - a decrease in the number of customers.

21% of entrepreneurs consider their business to be successful - this share practically does not change in the entire history of measurements. Half of those who have not yet achieved success are ready to wait no more than two years. At the same time, the share of those confident in achieving the planned business results is decreasing (20% in 2019 against 23% at the end of 2018), and the share of those wishing to close or sell the business is growing (19% against 17%, respectively).

The priorities for all industries are to increase profitability and attract customers. Against the background of low purchasing power, rising tax burden and increased competition, the profitability of companies decreases to a critical level. In almost all areas, small businesses will be busy improving business efficiency and maintaining their client base. Entrepreneurs intend to fight for customers primarily by improving the quality of service and flexible pricing (payment with deferred payment, price reduction, launch of loyalty programs).

In which industries are the most employed in small and medium-sized businesses

The number of employees involved in Russian enterprises of small and medium-sized businesses as of mid-2019 is 18.3 million people, according to the results of the SberData study. Experts estimate that this sector provides 25.6% of jobs.

71% of Russian entrepreneurs consider unfavorable conditions for doing business in Russia

On July 12, 2019, it became known that the All-Russian Center for the Study of Public Opinion (VTsIOM) presented data from a survey of Russian entrepreneurs on modern conditions, factors and risks that affect business in the country, as well as prospects in this area. 71% of Russian entrepreneurs believe that unfavorable conditions for doing business in Russia, and 51% that the situation will worsen in the next five years. 80% of respondents replied that the state pays insufficient attention to the development of measures to support entrepreneurs. Despite this, 76% would prefer to deal with their own business when possible.

Only 15% of respondents believe that the state actively supports businessmen, 27% - that the country has good conditions for business and 20% - that these conditions will become even better in the future.

Among the factors that worst affect business conditions, 81% of entrepreneurs named the low level of well-being of citizens, 72% - corruption, 71% - energy prices. 62% are dissatisfied with the work of the judicial system and the level of protection of the owner, another 62% - with the regulatory and legal regulation of entrepreneurship, 63% - with the work of control and supervisory authorities. Among the positive factors for business, 47% named competition in the domestic market, 35% - the stability of power and domestic policy, 28% - the availability of loans.

Among the most likely risks, 72% named a decrease in demand for products and services, 70% - a tax increase, 64% - unpredictable changes in legislation, 41% - the emergence of problems with the security forces, 25% - the likelihood of a raider seizure. 52% of respondents are afraid for their own protection against the background of the imperfection of the judicial system and a low percentage of acquittals. Least of all, business fears default and destabilization of the economy (20%) and a change in the political situation (22%).

10% of respondents called the best business plan for the next three years - to curtail business and close the company. 33% of businessmen plan to maintain their business at the achieved level, 26% consider it right to develop a business with an early return, 23% prefer to invest in long-term development.

More than half of the respondents (51%) are skeptical about the future, and in the five-year perspective they expect a deterioration in the conditions for doing business. Only 23% of Russian businessmen plan to implement long-term strategies. In the next three years, every third entrepreneur plans to maintain his business at the achieved level, about the same number (26%) are aimed at development with a return in the short term. Another 10% are thinking about closing their own business, 6% would like to sell it.

The survey was attended by representatives of large, medium and small businesses of the Russian Federation. 500 respondents were interviewed. The maximum error size with a probability of 95 percent does not exceed 4.5 percent, specified in VTsIOM.

Sberbank: Where the main centenarians of small and medium-sized businesses work in Russia

• 64% of SMEs that were active in January 2016 are still operating today.
• On average, 56 thousand new active businesses appear in Russia every month, and 28 thousand stop operations.
• The likelihood that the enterprise will continue to operate is especially high after the first year of existence.
• SMEs registered in the Far East live longer than others.
• Major "centenarians" in small and medium-sized businesses - in the medical sector and the extractive industry.
• 167 companies operating now are registered at the most "active" businessman in Russia.

Sberbank analyzed how many small and medium-sized businesses live in Russia. According to analysts of the SberData project (Sberbank's initiative to process and analyze big data), more than 70% of companies in the country live for three full years or more. On average, in the world, about half of new small enterprises work up to 5 years, and a third - from 5 to 10 years. However, in our country there is a colossal spread of indicators depending on the registration region and scope of activity.

The main "centenarians" in small and medium-sized businesses capable of working for more than 3 years are noted in both capitals, as well as in Kamchatka and Chukotka. At the same time, the expected life expectancy of SMEs is maximum in the Far East (about 37 months per sample of 40 months). Analysts suggest that at this turn the European part is lagging behind, as many re-register enterprises to avoid scheduled inspections. Thanks to the specifics of the legislation, new companies face them less.

On the graph of the intensity of business closures, a surge in the wave of closures upon reaching the age of 36 months is clearly visible. Since we analyzed a sample of 40 months in length, there are no statistical data on the future fate of enterprises. Most likely, the process is quickly normalized. It is also curious that the "death" of companies abnormally often occurs before reaching the age of 6 months. In the first six months, 6.5% of registered legal entities leave the market, which is about one and a half times higher than the norm. A significant part of them are probably one-day firms.

The most stable were companies operating in the field of health care (94 out of 100 companies continue to operate in the market for more than three years). In the top lines of the rating - those areas where significant capital investments are required: metallurgy, extractive industry, power.

The land transport business turned out to be less stable on the horizon for 36 months. In the first half of the year, 8.7% of companies are closed, only 58.4% survive to the age of three, which is 12 pp below the average for all OKVED groups.

In the construction sector, 11.5% of registered companies cease operations within six months. A similar situation is noted in the non-bank financial sector, advertising, and certain areas of retail trade.

However, after the closure of the legal entity, Russians most often continue to do business. Almost 20% of our fellow citizens who have ever opened their own business registered more than one legal entity. 16% of active entrepreneurs are shareholders of more than one enterprise, 1% have five companies and more. According to SberData estimates, the record was the participation of one person at once in 167 legal entities, all of them work today.

Rosstat for the first time revealed the share of small and medium-sized businesses in the economy

The share of small and medium-sized businesses in the Russian economy is 21.9%. The corresponding data on its website was first published by Rosstat^[1]. This is an estimate for 2017, the results of 2018 have not yet been summed up Rosstat for^[2] of^[3].

The share of small and medium-sized businesses is calculated as the ratio of the total volume of gross added value created by medium and small enterprises (including micro-enterprises) and individual entrepreneurs to gross added value in the main prices of all economic entities, follows from the methodology approved by Rosstat at at the end of December 2018. In money, this is more than 20 trillion rubles. for 2017.

Rosstat published the contribution of small and medium-sized businesses to GDP for the first time. Earlier, Rosstat and the Ministry of Economic Development carried out their analysis of the share of SMEs in gross value added, but did not publish its results, the report of the Accounts Chamber said. According to these data, the contribution of small and medium-sized businesses to the economy in 2014 was 19%, in 2015 - 19.9%, in 2016 - 21.6%.

The share of small and medium-sized businesses in the GDP of developed countries is 50-60%. So, in the UK it is 51%, in Germany - 53%, in Finland - 60%, in the Netherlands - 63% (data from the Institute of Growth^[4]

Siluanov: the share of small and medium-sized businesses in the economy will be 23%

The share of small and medium-sized businesses in the Russian economy in 2019 will be 23%. This was announced at a meeting of President Vladimir Putin with members of the government by First Deputy Prime Minister and Minister of Finance Anton Siluanov, RBC reported in January. Last year, the share of small businesses in GDP reached 20%^[5]

The authorities want to increase the number of employees of small companies this year to 19.6 million people. By 2024, the government plans to increase the share of small and medium-sized businesses in the economy to 32%, the minister added.

2018

Research by Tinkoff and Inc.

Business growth and profits

Almost half of the respondents noted an increase in profit last year (47%), for a fifth of those who answered questions from Tinkoff and Inc. Russia in 2018 did not change (20.4%). Less than a third of entrepreneurs (28.7%) said that profits fell. Almost 3.9% could not give a specific answer, as Tinkoff and Inc. magazine have been working on the market ^[6]first ^[7]the ^[8]

As for scaling, here, as it turned out, mainly the business remained at the same level (about 40%) or grew (37%). Only every fifth company (19.7%) had to optimize processes so that the business remained afloat. Another 3.7% of respondents noted that they had to close their case.

Relations with government agencies

Almost 86% of entrepreneurs surveyed said that in 2018 they did not encounter facts of corruption in their activities. Only about 12% reported such cases in their practice with the participation of officials. In addition, some entrepreneurs noted that they are generally trying not to deal with government orders in order to avoid corruption risks in principle. Several survey participants spoke about the relevant hints from representatives of government agencies, but it did not come to specific facts of corruption in their case.

The fiscal authorities, judging by the results of the survey, cause the most complaints from Russian business. Almost every third company (about 30%) faced problems one way or another related to the activities of the Federal Tax Service. Entrepreneurs criticize the tax authorities for unfair, in their opinion, fines, errors and confusion with documents, bureaucracy, as well as incomprehensible and sometimes absurd requests. But at the same time, two-thirds of the respondents (67%) did not experience any special problems in communicating with the tax service in 2018.

Sanktsii

More than half (57.6%) of the entrepreneurs participating in the survey said that the sanctions did not affect their business in any way. About 37% of respondents answered that it became more difficult for them to earn money. At the same time, every tenth participant in the survey noted sanctions as an indirect reason for the fall in profits - customers had less money, the average check decreased. Other negative consequences of sanctions are difficulties with the import of raw materials and equipment, problems due to currency jumps, the inability to attract foreign investment.

Entrepreneurs who, on the contrary, have earned money on the current situation, import substitution was called the main benefit of the sanctions - in some markets, domestic producers replaced foreign companies. True, there were few winners - only 5.3% of business owners who participated in the survey noted the positive effect of the sanctions.

Results

The main conclusion that can be drawn from the survey is that two-thirds of Russian small and medium-sized companies do not reduce turnover or increase profits. The main obstacles to development are insufficiently intelligible actions and requirements from the tax authorities and other officials. The problems of entrepreneurs, as it turned out, are largely related not so much to corruption as to bureaucracy, insufficiently configured tax administration and the consequences of sanctions.

Alfa-Bank: Small Business Sentiment Index

The small business sentiment index in November 2018 was minus 32 points. Entrepreneurs were more pessimistic only in November 2015 (minus 38). With a moderately negative assessment of the current economic situation, entrepreneurs have sharply worsened forecasts for the next six months - the business expectations index reached minus 54 points. This is the lowest mark during measurements.

Main trends:

• The prevalence of negative expectations regarding the prospects for the economic situation and the purchasing power of the population in the next 6 months. The increase in VAT from 18% to 20%, a sharp decline in oil prices in November, a weakening of the ruble exchange rate and an acceleration of inflation affect.
• Since 2015, the share of companies whose activities are related to imports has decreased from 36% to 22%. Nevertheless, small businesses - especially in wholesale and retail trade and production - remain dependent on imports and, for the most part, do not seek to change anything.
• Compared to the first half of the year, there were more companies noting an increase in sales, the average check and, as a result, an increase in profit and revenue.
• High taxes and lack of financial resources for business development are the most pressing problems in all industries. At the same time, IT companies suffer from a lack of qualified personnel. Entrepreneurs see the key tasks for themselves as expanding their client base and increasing business profitability in the face of an increasing tax burden.

• Entrepreneurs reacted sensitively to the slowdown in the growth of the Russian economy (according to the Ministry of Economic Development, the GDP growth rate in the third quarter was 1.3% against the 1.8% in the second quarter) and a sharp drop in oil prices in November 2018 and gave more negative assessments of the situation in the economy than six months ago.
• 85% of respondents believe that the current economic situation in the country slows down business development and will deteriorate in the next 6 months (63%). Since the beginning of the year, the purchasing power of the population in the country has deteriorated (78% of respondents), and will continue to decline (68%).
• The most negative in the estimates for the future are representatives of wholesale and retail trade, which are under pressure from inflation expectations.
• Describing the situation in their own company, 47% of respondents noted a decrease in profit, 28% - a decrease in the average check, 30% - a decrease in the number of customers.
• At the same time, over the past six months, the number of companies that managed to increase profits (18% of respondents), the number of customers (28%) and the average check (24%) have increased.
• The expansion of the staff is planned by every fourth company, 12% of entrepreneurs announced their intention to raise salaries.
• 21% of entrepreneurs consider their business to be successful - this share practically does not change.
• Russian entrepreneurs understand the success of "high income," "the possibility of expanding their business" and "the creation of products or services of the highest quality." These are the three main signs of success that our respondents most often call.
• However, in November 2018, amid a slowdown in economic growth, small businesses began to talk less often about creating high-quality products as a criterion for success and more often about stability and maintaining current business volumes.
• The share of companies ready to continue their activities for success has significantly decreased over the past year - from 41% to 35%.
• 17% are ready to close or sell the business if they do not succeed in the foreseeable future (1-5 years). 31% and 24% are ready to change the business model or type of activity, respectively.
• The main problems entrepreneurs call high taxes (49%), lack of funds for development (38%) and a decrease in demand (37%).

2017

Markswebb: Which banks open a settlement account for small businesses quickly and easily?

The opening time of a current account with Russian banks varies from several hours to several weeks. In some, it is enough to fill out several fields online, download a couple of scans and assure the documents that the bank will prepare and bring the client manager. In others, in order to open a current account, you will have to independently fill out bales of documents (sometimes by hand), go to the branch 2-4 times and wait for days and weeks until the bank considers the application.

Which bank to contact an entrepreneur who wants to open a current account as quickly as possible, remotely and simply? According to the results of the Business Bank Account Opening 2017 study conducted by Markswebb, these are Modulbank, Alfa-Bank, Tochka Bank, Tinkoff Bank and Promsvyazbank. Out of ^{[9] [10]}

Characteristics of leaders and outsiders of the rating

Modulbank, Tochka, Alfa-Bank and Tinkoff Bank showed the best results in terms of the combination of factors. All four banks offer the possibility of opening an account without visiting the bank's offices, but otherwise, despite similar ratings, they differ greatly in the organization of the account opening process and in certain key metrics.

At the Point, the easiest process for the customer to open an account, which consists of 12 "conditional actions":

• 6 actions at the stage of filling out the application on the site: the client enters his phone number, e-mail and TIN, downloads the scan of the passport, SNILS and income declaration;
• 3 actions during the next contact: the client answers the manager by phone to 3 questions: the type of business of the company, the tax system, turnover (real or expected);
• 3 actions during the meeting with the client manager: 1 signature, confirmation of access to the Internet bank with a code from sms, confirmation of email.

The nearest Vesta Bank in terms of simplicity of the process opens a settlement account after 23 "conditional actions," and Modulbank after 28. At the same time, the Point among the four leaders showed the longest waiting time for the bank's reaction - almost 68 hours, of which most was the waiting time for a meeting with a client manager, which could not be appointed earlier than 2 days after filling out the application.

Alfa-Bank showed the shortest total time to contact the bank in the process of opening an account - 31 minutes, including a meeting with a client manager. Tinkoff Bank showed the shortest waiting time for the bank's reaction among banks opening accounts with the departure of a client manager - just under 26 hours.

The process of opening a settlement account in outsider banks is dramatically different from the organization in leading banks. First of all, this is expressed in the number of visits to the bank's offices to fully open a current account: it can vary from 1 to 4. Taking into account the temporary costs (on average 1 an hour 10 minutes for a round trip), the need to go to the bank's office increases the client's time spent on opening an account by 5 or more hours.

In the banks that took the last places in the rating, it takes much more effort and time from the client to open a settlement account for small businesses. One of the key factors that significantly increase the complexity of the process is the completion of long paper or electronic questionnaires. For example, in the Asia-Pacific Bank, you need to fill out 11 different documents in electronic form (a total of about 150 fields). In VTB24, when submitting an application at the bank's office, it is necessary to fill out in two copies an application for opening an account and an individual entrepreneur's questionnaire (by hand, fill out more than 30 fields, including OGRNIP and TIN).

An important difference between the leaders of the rating and outsiders is that the process of opening a current account is organized centrally, and the influence of the human factor is reduced to zero. Point, Modulbank and Tinkoff Bank process each application according to the same scheme and automate most processes.

When an application is tied to a specific bank office and a specific person is responsible for the client, it is likely that something will go wrong. For example, the time declared by the bank to process the application in fact turns out to be significantly higher: Bank Uralsib promised to check the documents in 5 days, and in fact announced the decision 15 working days after the client's independent call to the bank.

Alfa-Bank: Small Business Sentiment Index

The small business sentiment index, calculated by Alfa-Bank experts together with the MARC International Research Center according to its own methodology, turned out to be the highest in two years of the study in June 2017 and amounted to minus 21 points (the index value can vary from minus 100 to 100).

During an online survey of 2.3 thousand bank customers - entrepreneurs and company leaders - an assessment of the impact of the changes in the economy on small businesses was obtained, the main factors were analyzed and forecasts for the future were collected.

"Negative sentiment regarding the economic situation has remained almost unchanged for two years. According to the results of the study, it is clear that entrepreneurs have become a little more positive about their business and prospects for its development, while they rely only on themselves. Every third company has changed its sales model over the past six months. Companies are actively investing in the development of their employees and increasing expertise. Also, entrepreneurs more often began to declare that they invest in digital technologies and automation of business processes - almost 70%. Another trend that we have seen since 2015 is a decrease in the number of companies whose activities are related to imports, now only 23% of small businesses say that they buy goods from foreign markets, as of June 2015 this figure was 36%, "said Denis Osin, head of the Mass Business block of Alfa-Bank.

For two years, companies in the fields of marketing, business services (minus 15) and IT (minus 14) have been feeling more confident. The index of sentiment of representatives of wholesale trade and production returned to the level of one year ago - minus 20 and minus 19. The growth, in comparison with the fall of last year, amounted to 8 and 7 points, respectively.

The final index is formed by four intermediate indices characterizing the assessment of the current situation in the economy and in its own business, as well as expectations for the next six months in the country and in its company:

• index of the current economic situation minus 64, in November 2016 minus 67;
• Business expectations index minus 28, in November 2016 minus 35;
• current situation index for the company minus 12, in November 2016 minus 15;
• Company expectations index 20, November 2016 - 9.

The assessment of the current economic situation both in the country and by industry, in comparison with November 2016, increased by 3 points and amounted to minus 64. Small businesses in almost all regions note an increase in the purchasing power of the population at almost the same level as expected (5% in the country versus 8% expected, and 7% in the industry versus 10% expected). In many respects, the improvement was facilitated by a slowdown in inflation and a decrease in overdue wage arrears (according to Rosstat - by 3.7%).

The assessment of business expectations for the country and industries compared to November 2016 also became more positive. This is largely due to the fact that the consequences of the cold summer will affect the rise in prices only in 2018 - due to the weather conditions of this summer, the harvest of fruits and vegetables may be partially lost, and less stocks will be transferred to the next year.

Freight companies gave a more negative forecast regarding the economic situation than six months ago. In the areas of construction, production and wholesale trade, they expect some revival in the next 6 months. As for the regional specifics, the expectations of entrepreneurs in the Central and Ural regions have significantly improved.

The situation in their business is assessed more positively compared to November 2016, but the expectations of entrepreneurs six months ago turned out to be better than the real situation. This is largely due to the fact that a third of companies note stagnation. At the same time, representatives of small businesses are less likely to talk about the negative impact of sanctions, despite the extension of EU sanctions against Russia and the expansion of the sanctions list by the United States.

In November 2016, entrepreneurs were more restrained in assessing the situation for the next six months, then the index reached 9, in June of this year the expectation index was 20. Entrepreneurs are optimistic about the future, with more players targeting growth in profits, revenue, shopping frequency and customer base. First of all, this is due to the expected improvement in the purchasing power of the population (including in connection with the increase in the minimum wage).

2016: Alfa-Bank: Small Business Sentiment Index

The assessment of the current economic situation in both the country and industries has become more positive in comparison with November 2015. At the same time, companies are more restrained in assessing purchasing power. Traditionally, the assessment of the current situation in the country is more negative than the assessment of the situation in the industry. This can be the result of both a general negative information background and a deeper knowledge by entrepreneurs of their own industry.

Representatives of all companies, except IT and cargo transportation, noted the negative impact of the sanctions

^[11], an index of small business sentiment calculated by Alfa-Bank experts together with MARC International Research Center using its own methodology, slightly decreased at the end of 2016 compared to June of this year - (-27) and (-24), respectively (the index value may vary from -100 to 100) ^[12]..

During an online survey of the bank's clients - entrepreneurs and company leaders - an assessment of the impact of the changes in the economy on small businesses was obtained, the main factors were analyzed and forecasts for the future were collected.

The final index is formed by four intermediate indices characterizing the assessment of the current situation in the economy and in its own business, as well as expectations for the next six months in the country and in its company:

• Index of the current economic situation (-67), in June (-68);
• Business Expectations Index (-35), in June (-27);
• Current situation index by company (-15), in June (-16);
• Company expectations index (9), in June (17).

Sentiment Index by Industry

For two years, companies have been more confident in the areas of marketing, business services and IT (-17) and (-19), respectively. Companies engaged in cargo transportation (-24) feel noticeably better - the highest figure in two years, in June 2016 (-32). This is due to imports, which regain their positions, while slowing down the development of production (-26), this summer (-19). Against the background of a fall in real incomes of the population, a deterioration in the situation is expected by wholesale (-28), retail (-33) and construction (-31) companies.

The assessment of the current economic situation both in the country and by industry, in comparison with June 2016, practically did not change - (-67). At the same time, the optimistic sentiment regarding the growth of purchasing power that entrepreneurs had 6 months ago did not materialize: only 2% noted an improvement, which is 5 times lower than expected.

The assessment of business expectations in the country and industries decreased in all indicators - (-35). Less optimistic are production (-40), construction (-37) and wholesale (-33) companies. In the field of cargo transportation, expectations from the next six months are more optimistic - (-27).

Entrepreneurs assess the situation in their business at about the same level (-15) as in June 2016, while the real situation at the end of 2016 turned out to be worse than they expected in the summer. The negative impact of the sanctions was noted by representatives of all companies, except for IT and cargo transportation.

See also:

• US and EU sanctions on Russian oil and gas sector
• Sanctions of Ukraine against Russia
• Foreign sanctions against Russian citizens and companies
• Top 10 countries affected by sanctions from Russia. Zyfras

In November 2016, entrepreneurs were more restrained in assessing the situation for the next six months (9) than in June of this year. However, positive expectations prevail over negative ones in all business indicators, except for profit and revenue, primarily due to the expected increase in business expenses in 2017 (in order to meet the requirements of No. 54-FZ (as amended by No. 290-FZ), entrepreneurs will have to replace the cash register fleet) and tax burden.

The index of small business sentiment in the first half of 2016 increased markedly

Small Business Sentiment Index According^[13]calculated by Alfa-Bank experts together with the MARC International Research Center according to its own methodology, in the second half of 2016 it grew to (-24) points, returning to the level a year ago. Six months ago, its value was (-38) points, a year ago - (-25) points. The company's expectations index returned to positive territory, rising to 17 points.

• Small business pulse (1H 2016)

The contribution to the recovery of the index was made both by the respondents' assessment of the current situation and by more optimistic forecasts of entrepreneurs than at the beginning of the year. At the end of 2015, the study showed that entrepreneurs tuned in to a protracted recovery.

"One of the reasons for the increase in the level of sentiment in the first half of 2016 is the signs of stabilization of the economic situation and the information background. Almost all business activity indices calculated by infrastructure and analytical organizations also increased significantly compared to November 2015, which indicates an improvement in the overall state of the business environment, "analysts at Alfa-Bank's mass business unit say following the third wave of the Pulse of Small Business study.

The final index is formed by four intermediate indices characterizing the assessment of the current situation in the economy and in its own business, as well as expectations for the next six months in the country as a whole and for its company:

• Index of the current situation in the economy: (-68) points, an increase of 10 points;
• Economic Expectations Index: (-28) points, up 19 points;
• Index of the current situation by company: (-16) points, an increase of 8 points;
• Company expectations index: 17 points, up 18 points.

"Now we see more companies planning to increase turnover and enter new markets - their share for six months increased from 42% to 46% of respondents. Small businesses are flexible and responsive to changing conditions, and the current recovery in optimism reflects entrepreneurs "susceptibility to even small positive signals from markets. At the same time, small businesses continue to focus on working with costs and profit, increasing customer focus and quality of service and products. says Denis Osin, head of Alfa-Bank's mass business unit. Alfa-Bank has chosen to support our business clients. One of the support tools is business conferences and seminars with the participation of experts in marketing, online promotion, financial management and personnel. As part of these meetings, best practices in attracting and building customer relationships, as well as practical cases, are becoming available to entrepreneurs across the country. "

The study also revealed a decrease in pressure on small businesses of such problems as a reduction in demand for goods and services - this factor was named by 49% of respondents against 55% six months ago, as well as a lack of financial resources for development - 40% against 42%. Among other pressing problems, entrepreneurs still name high taxes, difficulties in finding personnel and premises, etc. 3% of the surveyed companies experience no difficulties (against 1% six months ago).

              

To calculate the Small Business Sentiment Index and its components, customers of Alfa-Bank's Mass Business block were interviewed - individual entrepreneurs and companies with revenues of up to 350 million rubles per year. The bank occupies 4.7% of this market on average in the country and more than 10% in the largest cities. In an online survey, experts found out estimates of changes in indicators such as profit, revenue, average check size, number of customers, frequency of purchases and others, asked questions about company development plans and success criteria. An assessment of the impact of changes in the economy on small businesses was obtained and forecasts for the future were collected. The statistical sample of the study was 2554 companies in cities Russia. Positive index values ​ ​ mean the predominance of positive estimates, negative values ​ ​ - negative sentiments over positive ones. The range of the index is between 100 and (-100) percentage points.

The results of the first^[14] and the second wave^[15] in June 2015 and December 2016.

Notes