All-Russian Non-governmental All-Russian Non-governmental Organization of Small and Medium-Sized Organization of Small and Medium-Sized

BusinessBusiness

OPORA RUSSIAOPORA RUSSIA

Sergey R. BorisovSergey R. BorisovPresident of OPORA RUSSIAPresident of OPORA RUSSIA

Zurich, 19 Zurich, 19 March March 2007 2007

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SMALL ENTREPRENEURSHIPSMALL ENTREPRENEURSHIPtodaytoday

1 1 millionmillion 29 29 thous.thous. – – small small enterprisesenterprises

2 2 millionmillion 600 600 thous.thous. - - entrepreneursentrepreneurs

Number of employees in SENumber of employees in SE - - 16,7 16,7 million peoplemillion people oror 25%25% of total of total number of employeesnumber of employees

13-15%13-15% in structure of GDPin structure of GDP

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Branch structure of small Branch structure of small entrepreneurshipentrepreneurship

50%

13%

13%

3%

2% 17%

2%

trade and mass cateringindustryconstructiontransport

science and informational technologies public health servicesother

Small Enterprises (SE)* SE +Private Entrepreneurs

*Number of small enterprises (legal persons) on branches of economy according to the Federal service of the State statistics

50%13%

13%3%2%

20%

80%

in other spheres in the trade sphere

2%17%

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PROBLEMSPROBLEMS of Small Enterprises’ of Small Enterprises’ DevelopmentDevelopment

financial conditionfinancial condition - - more than 50 % of entrepreneurs more than 50 % of entrepreneurs

estimate their position as estimate their position as “relatively stable“relatively stable, , enough to enough to maintain business, but not enough to develop it maintain business, but not enough to develop it further”further”;;

business real estatebusiness real estate - a- about bout 70 %70 % of entrepreneurs of entrepreneurs are unable to purchase are unable to purchase due todue to high prices or due to high prices or due to artificial restriction of access to auctions; artificial restriction of access to auctions;

influence of administrative resource on influence of administrative resource on competition.competition. Public servants are active players of Public servants are active players of market relationsmarket relations;;

costscosts to overcome administrative barriers runto overcome administrative barriers run::- - 2005 – to 8,5 % of proceeds2005 – to 8,5 % of proceeds. . - - 2006 - 2006 - 9,69,6 %. %.

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Federal Program to Support Federal Program to Support Small EnterprisesSmall Enterprises

Federal budget funds allocated to support Federal budget funds allocated to support small enterprises (small enterprises (million Rubles)million Rubles)

In 2005 – In 2005 – 15001500

In 2006 - In 2006 - 30003000

In In 20072007(already)(already) – – 38003800 Funds are submitted to regions on terms:Funds are submitted to regions on terms:

50% - 50% - from federal governmentfrom federal government

50% - from regional administrations50% - from regional administrations

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OPORA RUSSIAOPORA RUSSIA todaytoday

OPORA RUSSIAOPORA RUSSIAAll-RussianAll-Russian

Public Organization ofPublic Organization of Small and Medium-SizedSmall and Medium-Sized

EntrepreneurshipEntrepreneurship(created in September 2002)(created in September 2002)

OPORAOPORAAssociation of entrepreneurial Association of entrepreneurial

organizations of Russiaorganizations of Russia (created in September 2001)(created in September 2001)

Commissions & Commissions & CommitteesCommittees

Coordinators in Coordinators in 7 Federal Districts7 Federal Districts

EntrepreneurialEntrepreneurialregionalregional

associations and unionsassociations and unions

EntrepreneurialEntrepreneurial sectoral associationssectoral associations

and unions (101)and unions (101)

EntrepreneursEntrepreneurs

Above 330 000Above 330 000

79 regional 79 regional divisionsdivisions

EntrepreneursEntrepreneursApprox. 4,5 millionApprox. 4,5 million

jobsjobs

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REGIONAL DIMENSIONREGIONAL DIMENSION

■ ■ OPORA RUSSIA has its divisions in 79 of 88 regions of the countryOPORA RUSSIA has its divisions in 79 of 88 regions of the country

Regions where OPORA RUSSIA divisions are set upRegions where OPORA RUSSIA divisions are set up

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OPORA’s priority activitiesOPORA’s priority activities Improvement of business conditions Improvement of business conditions

administrative reform, administrative reform, tax reform, tax reform, anti-monopoly regulation, anti-monopoly regulation, fight against corruption, etcfight against corruption, etc

Diversification of small businessDiversification of small business reduction of share of retail trade, reduction of share of retail trade, increase of share of production, services, innovationsincrease of share of production, services, innovations

Development of SMEs support infrastructureDevelopment of SMEs support infrastructure industrial parks, industrial parks, technoparks, technoparks, clusters, clusters, business incubatorsbusiness incubators

Development of international cooperationDevelopment of international cooperation..

99

OPORA’s studiesOPORA’s studies 2005-20062005-2006 “Innovation economy and small “Innovation economy and small

business”business”:: Study of conditions and problems of development of small Study of conditions and problems of development of small

innovative entrepreneurship (jointly with the All-Union Centre of innovative entrepreneurship (jointly with the All-Union Centre of Public Opinion Study)Public Opinion Study)

Forum “Innovation economy and small business.”Forum “Innovation economy and small business.”

2005-2005-20062006 – – “Conditions and factors of development “Conditions and factors of development of small entrepreneurship in regions of Russia”of small entrepreneurship in regions of Russia” jointly with the All-Union Centre of Public Opinion Study and in jointly with the All-Union Centre of Public Opinion Study and in

2006 - under support of the Ministry of Economic Development and 2006 - under support of the Ministry of Economic Development and TradeTrade

20072007 – – “Small and medium-sized entrepreneurship “Small and medium-sized entrepreneurship in development of industry and technologies”in development of industry and technologies”:: Forum “Innovation economy and small business.”Forum “Innovation economy and small business.” Annual forum “Small business in industrial policy” Annual forum “Small business in industrial policy” 28 28 FebruaryFebruary

2007,2007, Study of factors and conditions of development of small Study of factors and conditions of development of small

entrepreneurship in industryentrepreneurship in industry, , Covering results of the project and presenting concrete proposals Covering results of the project and presenting concrete proposals

to the bodies of powerto the bodies of power..

1010

OPORA OPORA RUSSIARUSSIA

Ministry for Economic Ministry for Economic Development and TradeDevelopment and Trade

of the Russianof the RussianFederationFederation

InternationalInternationalnongovernmental nongovernmental

organizationsorganizationsand programsand programs

International cooperationInternational cooperation

PARTNERSPARTNERS((international business-associationsinternational business-associations))

CGPMECGPMEFranceFrance

CECCCECCChinaChina

OSECOSECSwitzerlandSwitzerland

US-RUSSIAUS-RUSSIA CENTERCENTER

for entrepreneurshipfor entrepreneurshipUSAUSA

KFSBKFSBKoreaKorea

FICCIFICCIIndiaIndia

SBFSBFSingaporeSingapore

SARIOSARIOSlovakiaSlovakia

FFEFFEFinlandFinland

OPORA EUROPE OPORA ASIAOPORA EUROPE OPORA ASIA Zurich Zurich Shanghai Shanghai

Ministry for Foreign AffairsMinistry for Foreign Affairsof the Russianof the Russian

FederationFederation

UNICEUNICEEUEU

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OPORA EUROPEOPORA EUROPEOfficial representative of OPORA RUSSIAOfficial representative of OPORA RUSSIA

The main aim of OPORA EUROPE is to develop and The main aim of OPORA EUROPE is to develop and strengthen business relationships between Russian and strengthen business relationships between Russian and European small and medium-sized companiesEuropean small and medium-sized companies..

Services provided by OPORA EUROPEServices provided by OPORA EUROPEInformationInformation Business opportunities in Russia – projects overviewBusiness opportunities in Russia – projects overview Latest changes in Russian legislationLatest changes in Russian legislation Target market overview Target market overview

ConsultancyConsultancy Assistance in establishing business relationships with credible Assistance in establishing business relationships with credible

banksbanks Legal support, including legal protection and Legal support, including legal protection and

commercialization of intellectual propertycommercialization of intellectual property Key people in the target countries to facilitate businessKey people in the target countries to facilitate business

Business partner searchBusiness partner search Identifying, screening and selecting partnersIdentifying, screening and selecting partners Assistance in negotiationsAssistance in negotiations

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Joint strategy in the following Joint strategy in the following fieldsfields Introduction and using the experience of Switzerland in Introduction and using the experience of Switzerland in

development of business incubators, industrialdevelopment of business incubators, industrial parks, parks, technical parks, clusterstechnical parks, clusters

Exchange of information in current SME policyExchange of information in current SME policy

Participation of SME in creating and fulfillment of Participation of SME in creating and fulfillment of regional industrial policyregional industrial policy

Development of innovation in SME and protection of Development of innovation in SME and protection of intellectual property intellectual property

Using opportunities of SME in small autonomous energy Using opportunities of SME in small autonomous energy industry, tourism and other kinds of servicesindustry, tourism and other kinds of services

All mentioned points will be discussed during Summit in All mentioned points will be discussed during Summit in Bern in April 2007.Bern in April 2007.