The head of the Russian Federation, Mr. V.V. Putin, spoke about the need to strengthen state support for small and medium-sized businesses in the country in the context of economic difficulties in the country that have arisen due to Western sanctions. According to the Russian president, it is small business that can pull the state out of the financial abyss that the European Union and the United States have prepared for the Russian Federation.

“Finding itself in a new Cold War with the United States, Russia no longer intends to be defeated. Therefore, as a developed country with strong potential, we are obliged to do everything to support national small and medium-sized businesses that are capable of bringing the economy to a level corresponding to its rival! ”, said V. V. Putin.

Overcoming economic difficulties is possible only if small businesses develop normally, which means that the success of the country as a whole depends on the level of activity of the self-employed population.

“Modern Russia is ready to accept any challenge from the West! Moreover, we do not intend to concede to the EU and the USA to our detriment!” - V.V. Putin.

At the same time, the Russian leader clarified that the main component of the success of the Russian Federation is the liberalization of the economy. It is in this way that we can provoke the dawn and further prosperity of domestic small business. Such a sincere recognition of Vladimir Vladimirovich literally stunned the Federal Assembly, which, according to tradition, was addressed by the Russian President at the end of the year.

The Russian President's speech took place in the Grand Kremlin Palace. All high-ranking officials of the Russian state, as well as representatives of the two chambers of the Russian parliament, arrived here. As part of the prepared report, V.V. Putin announced a number of measures that, in his opinion, could pull the country out of the economic crisis. All of them relate to liberal reforms, aimed at combating corruption, profiteering and popularizing national consolidation and patriotism.

V.V. Putin once again recalled the main goals of the EU and the United States when introducing sanctions regimes against Russia. All of them are focused on lowering the economic and political status of the Russian Federation in the world by provoking popular unrest and war in Ukraine. The only way to resist the attacks of the West is to concentrate on maximizing the use of the country’s national reserves, including the development of small businesses, as well as the search for new partners in the East.

Expert forecasts promise a recession for the Russian economy in 2015. However, this does not frighten the state government at all, since it has found a way to pull the country out of the economic crisis by strengthening measures to support small and medium-sized businesses by introducing tax holidays, eliminating bureaucratic obstacles, reducing taxation, additional financing, reducing inspections, participating in government procurement and etc. for small and medium-sized businesses in Russia.

Such events will be quickly appreciated by businessmen, because they have been talked about among entrepreneurs for many years, but this is the first time they have been talked about in the government!

Vladimir Putin himself assures that he has thought about national small business before. Offers of support for entrepreneurial activity often came from his lips. But the representatives of the self-employed population were not yet ready to work efficiently; their patriotic consciousness was not sufficiently developed.

Analyzing the current business environment in the country, we can identify a number of problems that are hindering the progressive development of small businesses in Russia:

• -- difficult financial and economic situation prevailing in the country: inflation, decline in production, severance of economic ties, deterioration of payment discipline, high interest rates, weak legal protection of entrepreneurs;
• -- low level of organizational, economic and legal knowledge of entrepreneurs, lack of proper business ethics and economic culture, both in business and in the public sector;
• -- negative attitude of a certain part of the population that associates entrepreneurship directly only with mediation, buying and selling; -- undeveloped organizational and legal framework for regulating the development of entrepreneurship at the regional level; -- weakness of the mechanism of state support for small businesses. The current economic situation has a negative impact on small businesses in all areas. The level of inflation and rising prices for all factors of production are putting many small businesses on the brink of bankruptcy. And among them, first of all, are enterprises operating in the production of domestic goods and consumer services for the population, consuming raw materials, materials, the cost of which is constantly growing. The tax pressure is putting pressure on manufacturing enterprises in the small business sector. Surveys of small business leaders conducted by the Institute for Strategic Analysis and Entrepreneurship Development showed that “over 80% of survey participants noted that they need government support for their business activities, and 70% that they need reliable legislative guarantees.” Research shows that about 75% of small businesses are constantly in need of direct financial support from Federal, regional and local authorities, about 83% are in need of tax benefits, 57% of small businesses surveyed are in need of soft loans for the implementation of specific projects . The main contradiction in the current situation of small business in Russia is that it is characterized by high socio-economic significance and at the same time a relatively low level of viability. This contradiction predetermines the need for state support. The necessary conditions for the development of small business in modern Russia are: The first condition is related to the formation of a favorable business climate. This requires the implementation in regions and municipalities of the laws on de-bureaucratization adopted by the State Duma. The second condition is the need for a rapid and sharp reduction in the tax burden, especially for beginning entrepreneurs. For these purposes, drastic measures must be taken - up to the introduction of tax holidays for the first two (adaptation) years of work for new production-innovative, construction, "officer", "disabled" small enterprises, as well as for social small entrepreneurship - medical centers , educational institutions, libraries, etc. The third condition is the establishment of interdepartmental coordination and the establishment of control in the field of small business at the federal level over the implementation of decisions of the President of the Russian Federation. The fourth condition is the activation of consumer demand and the gradual overcoming of the dominant conservative type of consumer behavior. The state policy of supporting small businesses is an independent systemic direction of the state’s socio-economic policy. Basically, it is carried out in two options: the first is broad government regulation of small business activities in combination with protectionist policies to support it; the second is moderate government regulation of small businesses in conditions of fierce competition, stimulating the viability and development of competitive small businesses. These two options are acceptable for Russia and can be used at different stages of development of market relations. Today, Russian entrepreneurship needs a version of state policy that includes the following areas: -- “formation of an infrastructure for the support and development of small businesses; -- creation of preferential conditions for the use by small businesses of state financial, material, technical and information resources, as well as scientific and technical developments and technologies; -- establishing a simplified system for registering small businesses, licensing their activities, certifying their products, and submitting state statistical reports; -- support for foreign economic activities of small businesses, including assistance in the development of their trade, scientific, technical, production, and information relations with foreign countries; -- organization of training, retraining and advanced training of personnel for small enterprises, etc.” The forms of state support for small businesses are: - provision of financial assistance on a reimbursable and gratuitous basis; -- financing of federal programs for the support and development of small businesses, providing tax benefits to small businesses carrying out priority activities; -- preferential lending and insurance for small businesses, etc. Measures of state support for small businesses can be classified as follows: this is support for small businesses at the federal, regional and local levels. State support measures at any level are based on: the relevant (federal, regional, local) normative act of representative authorities, which establishes the basis for such support; appropriate (federal, regional, local) program to support small businesses. These two documents usually contain both real benefits and instructions to executive authorities to develop individual support measures. In the latter case, the benefits themselves are enshrined in the regulations of executive authorities at the appropriate level. The measures to support small businesses provided at all levels can be conditionally divided into those related to taxation, accounting and accounting, and other benefits and advantages, for example, simplified registration, preferential lending, etc. State support for small businesses is carried out in the following areas: formation of infrastructure for the support and development of small businesses; creation of preferential conditions for the use by small businesses of state financial, material, technical and information resources, as well as scientific and technical developments and technologies; establishing a simplified procedure for registering small businesses, licensing their activities, certifying their products, submitting state statistical and accounting reports; support for foreign economic activities of small businesses, including assistance in the development of their trade, scientific, technical, production, and information relations with foreign countries; organization of training, retraining and advanced training of personnel for small enterprises. Currently, the main sources of financing for small businesses, in addition to entrepreneurs’ own funds, funds from their relatives and friends, are “direct financial support for small businesses from the state and bank lending.” Most experts note the low efficiency of the system of state support for small businesses through the Federal Fund for Support of Small Businesses (FFSMP), which has now been abolished. The existing system provided for the transfer of funds from the Federal Fund to its regional branches, followed by direct (“targeted”) financing of individual entrepreneurs. As a result, the previous version of the Federal Law of June 14, 1995 No. 88-FZ “On State Support of Small Business in the Russian Federation” is not only outdated, but has also largely discredited itself. The reason is simple - corruption. Persons close to distribution authorities often registered small businesses, received money, and then artificially went bankrupt, keeping budget funds for themselves. State funding rarely reached actual entrepreneurs. As a result, government funding for small businesses has now been reduced to four projects. The first project is the creation of business incubators. A business incubator is a fairly large premises where small businesses are located. A budding entrepreneur is allocated 2-3 workstations or a small room, depending on his needs. Typically, one business incubator can accommodate up to 100 companies. In the first year, they have a preferential rental rate, in the second year it increases, and in the third year the company must leave the incubator and be replaced by another. The constituent entities of the Russian Federation themselves decide where to create such incubators. Financial support from the federal budget is limited to financing the construction or reconstruction of a building, providing communications, computers and office equipment. The object itself is the property of a constituent entity of the Russian Federation, and the burden of expenses for its maintenance is borne by the owner. The second project is support for export-oriented small businesses. If a small enterprise has the opportunity to participate in foreign economic activity, then its support from the state budget is as follows: - “subsidizing the interest rate at which the small enterprise received a loan from the bank for an export contract in the amount of 50 percent; -- compensation of 50 percent of the costs associated with registration of entry into the foreign market, in the form of the cost of certificates, licenses, confirmation of conformity; -- compensation for the costs of renting exhibition space abroad in the amount of 75 percent of the rental cost.” Subsidies are provided to the regional executive for the implementation of the compensation mechanism within the framework of this program. It determines the body that will issue compensation. To obtain it, entrepreneurs have a declarative procedure. The third project is support for microfinance organizations (credit cooperatives). The essence of credit cooperatives is that individuals unite in such cooperatives for the purpose of lending to each other for business activities on the basis of mutual guarantees. State support consists of the fact that the budget compensates the interest rate (no more than half) for microfinance organizations, so that the cost of the loan for the end borrower is somewhat lower. The fourth project is support for small innovative companies. The main obstacles in obtaining bank loans for small businesses are the following circumstances: - high degree of risk; -- high level of costs. A high degree of risk lies in the fact that small businesses often cannot pay the high interest rate on the loan, they do not have collateral, a credit history, and have difficulties in drawing up a business plan and a feasibility study for the project. The high level of costs is that the bank’s costs for issuing one large loan are significantly less than for a hundred small loans. The currently used express lending models also have a number of serious inconveniences for entrepreneurs. “Firstly, the loan amount obtained using the express method without providing collateral does not exceed 30,000 rubles. Secondly, larger loan amounts can only be obtained with collateral, which entrepreneurs often do not have, or the bank does not satisfy.” As a result, in order to support small businesses in the process of obtaining bank loans, the state budget must bear financial losses. State financial support consists of the following: -- payments are made to small business support structures for the development of business plans and feasibility studies of projects for small businesses; -- interest rates on bank loans are partially subsidized; -- collateral is provided as a guarantee of loan repayment. Summarizing what was stated in this chapter, we can draw the following conclusions. Small and medium-sized businesses occupy a special place in the economies of many countries, including Russia. Currently, a legislative framework has been developed to support small businesses, and the criteria by which an enterprise is classified as a small or medium-sized business have been determined. The stages of small business development in Russia show the disadvantages and advantages of small business development. Currently, small businesses have a sufficient number of problems, which government policy in the field of supporting small and medium-sized businesses helps to solve.

The year 2014 turned out to be quite eventful with all sorts of political events, which ultimately led to economic wars breaking out between countries (mainly the European Union and the United States against Russia). And now we have cheaper oil, the dollar is growing by leaps and bounds, an increase in prices for imported (and even our own) products by 15-20% or more.

It is clear that everything is developing in a spiral and this crisis will be replaced by an upswing, you just have to survive. But here’s what to do if you want to do business in today’s conditions of sanctions, but there is no confidence in the future. Come here, we’ll tell you a little about what’s expected in the future and what to do when there’s economic chaos all around.

Today, the economic and political situation in Russia is very unstable. The daily decline in oil prices, the rapidly growing exchange rate of the dollar and euro, the falling exchange rate of the ruble - all this points to disappointing economic forecasts.

How will domestic business react, what prospects for development or liquidation await it?

Geopolitical dynamics

Foreign policy relations are aggravating Russia's economic situation. A rapid increase in prices, an increase in the budget deficit, an excess of demand for jobs, a significant reduction in GDP to 0.5% - aggravates the situation of our state.

But is everything so bad? Many experts see the coming crisis as an opportunity for Russia to take a new path and boost its economy.

For many years now, the oil and gas industry has contributed the lion's share of Russia's economy. The reduction in oil exports and the cost of oil itself significantly reduces the federal budget. Thus, Russian exports consist of 75% of oil sales, and this is approximately half of the federal budget.

We should not forget about the sanctions imposed by the West, which are also slowing down the economy at this stage. This whole crisis situation can affect the social policy of the state. When the saving mode is turned on, subsidies to companies and citizens will be cancelled, and the situation will be unfavorable for the entire business as a whole.

What will the budget deficit lead to?

In order to replenish the state budget, it is not enough to reduce expenditures, since the budget needs constant replenishment for a more stable position. Where will the state get this replenishment? Naturally, the entire burden falls on tax policy. The state has no choice but to raise tax rates and introduce new taxes.

Since 2015 introduced new property tax scheme for individuals. A new transport tax in the price of gasoline, as a result, car owners will pay taxes for their movable property repeatedly; this decision caused a great resonance in society, but is no longer subject to revision. State policy is constantly trying to find a middle ground, not to kill business with the tax burden and to squeeze out payments from it as much as possible.

For the companies themselves, tax increases can force management to go into the shadows and hide their income, since surviving in harsh economic conditions is very difficult. And a large reduction in workers and an increase in the unemployment rate will increase government spending on social benefits.

Another new tax is the sales tax (SST), which will be 3%. The tax will definitely be included in the price and will fall on the shoulders of the buyers themselves, as a result the inflation rate will increase. The positive side is only an increase in the state treasury.

Crisis for the benefit of economic development

Thanks to the sanctions imposed against our country and Russia's response, the economy has set a new course for its development. There was a huge incentive to develop agriculture, and competition in the market decreased. On the one hand, manufacturers can supply and sell their products on the market more profitably, on the other hand, they may turn out to be of lower quality than before.

The changes will also affect the banking industry. Thus, after foreign banks refused to issue loans to Russian banks, this led to an increase in lending rates, which, in turn, reduced the percentage of the population with debt. The population's inability to pay and the growth of total debt to credit institutions forces banks to offer more favorable loans and favorable investment conditions, which will generally have a positive impact on the population.

The import substitution policy also has a positive impact on the economy. Russia used the services and goods of other states according to the “historical pattern”, which did not allow goods with more favorable prices to enter the market. Now countries that have not adopted sanctions against Russia are increasingly offering commodity substitution on more favorable terms.

Governmental support

On February 1, 2008, on the initiative of V.V. Putin created the Russian National Welfare Fund, thanks to which Russia adequately survived the global crisis of 2008. This fund continues to operate to this day; many experts hope that in 2015 the Russian economy will withstand economic losses. Naturally, one cannot fully rely on such help.

At the drafting stage, the state has many development programs at its disposal: the creation of technology parks, the introduction of tax holidays for some industries, the creation of special economic zones that will have tax breaks and free customs regimes.

Most experts do not advise expecting too much help from the state and advise dealing with problems on your own. They note that the state will most likely pursue a policy of helping existing business projects, and those that are only at the business plan stage will have to properly convince the state to invest in the project or look for other investors.

The opinion of other experts says that under any circumstances it is not profitable for the state to ignore innovative projects, since they are the ones that drive economic development.

And yet, no matter what economic and political policy Russia pursues, it is impossible to predict the results with one hundred percent certainty. But it’s time for such a territorially large state to stop economically depending on gas and oil production.

We need to take an example from the United Arab Emirates, which, in 30 years since the discovery of oil deposits, was able to boost its economy and now become completely independent of oil resources. Perhaps the coming crisis will force Russia to change its priorities in economic development.

2. How to make money on sanctions. Top business ideas.

The creation of new jobs and supplying the country with goods of its own production was discussed back in the 90s. Today, senior officials openly state that even during the economic reforms of the last century, it was necessary to work on import substitution, but they still could not start. And then the petrodollar rain happened, and they completely forgot about this topic.

Today everyone knows about the events taking place in the world, and therefore, we return to the topic of import substitution. Under the conditions of economic sanctions, it became possible to develop domestic raw materials industries and make money from it, while creating new jobs.

Compound feed for fish

After the introduction of sanctions, everyone noticed the sudden disappearance of red fish from the shelves; even the increase in the value of the dollar did not cause so many negative emotions. Almost all red fish was supplied to Russia from Norway, where it was grown on farms.

In our country, organizing the production of red fish is not difficult, and soon after the disappearance, trout and salmon reappeared on sale, but at an inflated price of up to 1000 rubles per kilogram.

The thing is that Russian farms also purchased fish food from Norway, since local resources are insufficient and the available products are of low quality. That is, at this stage there are good prospects for the development of fish feed production in our country.

Russian fast food

In Soviet times, there were so-called “Snack Bars” where people preferred to eat. The menu consisted of the usual sandwiches with sausage or cheese, simple salads and dumplings with soups. Such establishments had good turnover with high trade margins.

If we translate the prices of those times into our money, then the cost of a sandwich is 15 rubles, tea - 7 rubles, dumplings one serving - 30 rubles. Without a doubt, the client will visit an establishment with such prices much more often than McDonald's, where the cost of one hamburger exceeds 100 rubles.

Opening such eateries in Russian cities will definitely lead to good profits, especially since McDonald's may soon cease operations altogether due to tightening sanctions.

Milk

The process of import substitution must begin with milk production in Russia. As it turned out, about 80% of the milk consumed in Russia was imported. Currently, opening a dairy farm will become the most profitable business.

Oil industry tools

In our country, for the petrochemical industry, installers used equipment, in particular pipelines, made in America or Europe. For this industry, the greatest importance is not the pipes themselves, but their threaded connections, which in our country supposedly cannot be produced of high quality.

Where can I get money to start my own business? This is exactly the problem that 95% of new entrepreneurs face! In the article, we revealed the most relevant ways to obtain start-up capital for an entrepreneur. We also recommend that you carefully study the results of our experiment in exchange earnings:

And the import of such pipes was in fairly large quantities. In fact, Russian engineers are quite capable of designing a tool that is not inferior in quality to well-known foreign manufacturers. And the production of such equipment can be carried out by small businesses using small production facilities.

Pipeline instruments

It just so happens in our country that we import almost all equipment. Take, for example, route finders. Russian organizations purchased only American equipment. Installers explain this by the fact that foreign route finders are much better and faster at finding underground pipes, plus convenient navigation and connection to GPS.

Although, it’s no secret that Soviet designers were the best in the development of locator-route finders. Our country today can do an excellent job of producing such equipment; the most important thing is to purchase the necessary components of good quality. This can also be done by small companies specializing in the production of industrial electronics. For the best tracking of terrain coordinates, the national GLONASS system will help.

Thermal imagers

Russian electricians very actively use thermal imagers to detect problems in electrical networks, and these devices also help monitor the thermal insulation properties of buildings. All thermal imagers came to us from Europe, and now they are also subject to sanctions. In fact, Russia has everything necessary to launch the production of compact thermal imagers. Until the early 1980s, Soviet scientists were the first in this scientific field, along with the Germans.

Beef

For a long time, our country purchased beef from Europe, as it was more profitable for us. Russian production of cattle meat developed poorly. Today, beef imports from Europe are being sanctioned and prices have skyrocketed.

Now this product is in short supply due to the lack of opportunity for most citizens to purchase it. In Russia, the development of livestock farms is supported by the regional government, so now is the time to start producing domestic beef.

Cheeses

One of the most favorite products of almost every Russian also turned out to be in short supply. Sanctions have been imposed on the import of cheeses. Meanwhile, all imported cheeses are produced on private farms, usually small in size, and all equipment is standard. In Russia, we have an excellent opportunity to start cheese production; it is advisable to locate the farm where the climate resembles that of southern Europe. Thanks to sanctions, there is an opportunity to make money here too.

GLONASS receivers

GPS navigation is in great demand in Russia, which you can take advantage of. Having purchased a national chip for encryption and decryption, launch your own development and implementation of GLONASS receivers on the domestic market. Until this time, all GPS navigators were assembled in China; all parts were produced ourselves, except for chips, which were purchased from microelectronics manufacturers.

Apples

For quite a long time, Russians consumed mainly apples imported from Poland. This has been the case since the time of the Warsaw Pact, although domestic apples have always been considered the best and tastiest, take Antonovka for example. Today, Polish apples are also banned. The time has come to correct the situation and resume growing apple orchards.

3. Comments from entrepreneurs on how sanctions affect business

The first wave of opinions about the positive consequences of sanctions against Russia has passed. Many businessmen note the possibility of serious consequences due to all the restrictions introduced. Which areas of the economy are affected first? How can you start making a profit again if your income has dropped significantly?

First of all, companies whose profits depend on the exchange rate suffer. Due to the sharp depreciation of the ruble, firms that spend foreign currency on production suffer significant losses, since market regulators do not allow a sharp increase in the price of finished products.

The next group is companies that are subject to sanctions for working with certain types of goods or services. And finally, the smallest group is people-clients who are on the blacklist, who are partners or clients of companies. In general, it can be noted that sanctions of various kinds, even if not significantly, slow down business and the economy.

According to Georgy Gasparyan, the founder of the Russian Club of Directors, domestic and foreign automakers are suffering big losses.

Car dealer companies need to modernize their activities and try to create additional service packages: for example, car service, insurance, lending and others.

Financial institutions with state capital also suffer heavy losses. These banks issued loans for the development of small and medium-sized businesses. Today this area is slowed down.

But like any economic phenomenon, sanctions have a positive impact. After the introduction of restrictive measures, legal and consulting businesses experienced a high growth rate. With the daily rise in the exchange rate of the dollar and euro, domestic manufacturers of import-substituting products felt a positive trend in sales.

The Russian defense complex was also subject to Western sanctions. On the one hand, the country lost foreign assets and defense products, but on the other hand, it freed itself from computer numerical control machines - which, according to experts, are military spies.

To get out of this situation, Russian business needs to create internal resources, learn to survive with their own help, and improve the professionalism of their employees.

It's time for the country to set a course for the development and modernization of information technology, thereby helping absolutely all industries and helping Russia launch companies of its own production that are not dependent on foreign capital.

Several entrepreneurs spoke on the Kontur.ru website regarding how sanctions affect their activities.

Pavel Spichakov, General Director of the KIT company:

Sanctions affect our business indirectly - through a sharp increase in the exchange rates of the euro and dollar. The company is just now completing a large purchase of equipment in Europe; due to a sharp jump in exchange rates, this purchase cost us several million rubles more than we planned.

And this despite the fact that we bought euros for 5 rubles. lower than the market rate because we insured the purchase rate in advance. But if we had not fixed the upper euro limit at the start of the project, the company would have suffered significant losses, and not only the project, but also our entire small LLC would have been under threat.

In general, any fluctuations in exchange rates have a negative impact on us: we regularly incur losses due to the increase in the cost of purchased materials for our medical masks from abroad. Sanctions also increase the price of European components and spare parts for production equipment, reduce the availability of loans and increase the cost of various financial services and instruments.

Production projects involving European equipment will now not only be more expensive, but also significantly riskier. I believe that many companies will even refuse new projects or postpone their implementation.

All this will result in a slowdown in business development and a reduction in the number of new high-tech jobs, because in some cases it is simply impossible to replace European or Japanese high-quality highly automated equipment with equipment from other countries.

To reduce the impact of sanctions, you need to have a reserve of financial stability, reduce dependence on external creditors and banks, and also reduce imports from abroad. For example, for many years we have been importing elastic for the ear loop for a medical mask from China. Last month we launched our own production of this elastic band. Now we import only a filter from abroad for our medical masks; the rest we purchase in Russia and Belarus or produce ourselves.

Denis Mazurov, General Director of Denis Cleaning:

The imposed sanctions have not yet affected my business. Perhaps in the future I will feel this influence. In general, sanctions greatly worsen the overall financial condition of the country and its residents: global trade turnover is declining, foreign investment is declining, and the average standard of living in the country is falling.

Evgeniy Dyachenko, creator of the Supl.biz platform:

The sanctions will likely lead to a general economic downturn. Problems may arise with the import of equipment, which will greatly hit both wholesalers/retailers (including online stores) and customers - prices will rise. This applies not only to household appliances, but also to industrial equipment. All businesses will strive to cut costs, and this will primarily have a negative impact on the B2B sector.

Various trading platforms that establish horizontal connections between owners of different businesses will help reduce the negative consequences of sanctions. For example, our Supl.biz platform helps companies find new suppliers to replace imported ones or receive services and products with savings of 15-25%.

Tightening sanctions is a good opportunity for domestic import-substituting companies to increase sales and develop their production.

Artem Subbotin, creator of the SoftBag company:

The sanctions affected us only indirectly: our partners and clients, concerned about the current state of affairs, are asking us to register a company outside of Russia in order to be able to continue cooperation. I am concerned about the exchange rate of the ruble against the dollar and euro. If the ruble continues to fall, it will be difficult for us to work according to the old scheme with clients in Russia and production in China.

It will be necessary to decide: either we work in Russia and move production and equipment here, or we move abroad and work and produce everything there.

Vasil Zakiev, head of the Navigator Campus technology park:

There is no direct impact on the technology park and our companies. The sanctions will have the greatest impact on large businesses, primarily the banking and insurance sectors. And retaliatory sanctions will probably be on retail. It’s hard to say whether it’s negative or not, but there will be more domestic products on the shelves.

For the high-tech development that we are engaged in, everything is still twofold: on the one hand, domestic demand will increase sharply, on the other, the possibilities of importing components and technologies from abroad will decrease.

Head of a manufacturing company importing goods from the USA:

All entrepreneurs transporting goods or raw materials from the United States may suffer from sanctions. There are few of them, but they exist. And our company is one of them.

Recently, my colleagues who import American drinks (sodas like the original Pepsi and Coca-Cola) had their container “wrapped” and sent back at customs. Colleagues said that now customs is finding fault with documents and finding reasons not to allow goods from the United States into the Russian Federation. The industry tries not to talk about this because it could negatively affect contracts with distributors and networks.

We will, of course, find a way to import products and raw materials. But the situation is getting worse, and counterparties may consider cooperation with companies like ours too risky.

Good contracts may fall through: retail chains fear that the supplier will not be able to deliver products on time and in full.

Shidov, A. Kh. Small and medium business, development prospects in modern conditions / A. Kh. Shidov, B. Z. Batova, I. Yu. Gedgafova. // Economics and business: theory and practice. – 2017. – 11. – P. 217-220.

SMALL AND MEDIUM BUSINESS, DEVELOPMENT PROSPECTS IN MODERN CONDITIONS

OH. Shidov, Doctor of Economics. sciences, professor

B.Z. Batova, Ph.D. econ. Sciences, Associate Professor

I.Yu. Gedgafova, Ph.D. econ. Sciences, Associate Professor

Kabardino-Balkarian State University named after. HM. Berbekova

(Russia, Nalchik)

The article is published with the support of the Russian Humanitarian Fund, project No. 17-02-00467

Annotation . The article discusses small and medium businessesEU as an important factor once economic development in unstable conditions foreign economic environment. ABOUT it is justified that only with the effective use of go toolsgovernment regulation, this area will be able totake a worthy place in the country's economy. For this purpose, analysis And Quantity data provided subjects small and medium business; O the main factors are identified,influencing low level of participation in the formation of GDP, development prospects are outlined in modern conditions.

Keywords: small and medium-sized businesses, competitiveness, investments, inn O national development, financing, economic sanctions, economic crisis, g O government regulation.

One of the main elements of the market h economy is a small business that can revive the country’s economy, forming suchneeded nowadays middle class, constituting a significant a significant share of the economically active us e leniya. It is with increasing importance of small business associated with stable economic growth in highly developed countries A Western countries, where this sector is O nomics is given a leading place.

Innovative development promotes small business creating new heights O co-productive jobs, increased incomes of the population, creating benefits conditions for the formation scientific but production potential, what about especially relevant in the conditionsunstable external economic environment.

Russian practice and world experience indicate that state government need th intervention in small business development for fulfillment of their general e significantly significant f functions, which is my destiny special attention is given in Russia . And in conditions of crisis, sanctions, as well as restrictions budget fundsthere is a need to select effective m e mechanisms and new forms of incentives development this kind of enterprise. But for production is effectivegovernment measures government policy it is necessary to have real modern performance a lot about standing of this sector of the economy, its development features in the country.

In Russia, small business means a collection of small and medium d them enterprises that directly n but are participants in the economic market.According to the Unified Register of Subъ small and medium enterprise projects and the number of these enterprises for the first half of 2016 year decreased by 650,000 units. Already in the second half of the yearthere was a positive growth trend, which is associated with revision of the criterion And ev classification as small and medium-sized businesses(SME) and is included in this list microenterprises. Resulting in they had the opportunity to take advantage receive appropriate benefitswhat influenced the growth quantity

N and the beginning of November 2017 years in Russia there were 5862360 SMEs , including small businessesno. 265339, medium-sized enterprises – 19813, microenterprises – 5577208 units. In I and II quarters lah of the current year their number increases, and then at the beginning of the third quarter begins sharply decrease (decrease by 10 % ) , moving into slow growth with September to November. The reason for this decrease in topics growth rate of SMEs is ba n meekness enterprises caused by change e reduction of the Central Bank key rate and fall in consumer demand associated with sleep and the same re real income of the population(Fig. 1) .

Despite the stable growth in the number the existence of SMEs, according to the Ministry of Department of Economic Development, their contribution to Russia’s GDP is minimal, in comparison and with other developed countries.

As can be seen from the figure 2, their contribution in Russia's GDP in 2011 year amounted to 19.4%, in 2012 – about 20%, in 2013 – 20.1%, in 2014 – 19.2%, in 2015 – 19.9%, in 2016 – 21.2%, and in 2017 this is still the applicant can achieve only 21%.

Decrease in spruce indicator in 2014 to minimum level explained by the increase global economic crisis and influence economic sanctions directed against Russia.

During the study period this the figure did not exceed 21.2% when V England, USA, France it accounts for 50% of GDP, and in Japan and China reaches 60%, providing e accounting for up to 70% of jobs. When in Russia, according to Rosstat, number of employees in a given om sector in 2015 amounted to O just over 28% of all jobs in eco nomics, and in 2016 about 32% .

One of the main reasons is not enough Participation of SMEs in the formation of GDP we consider precisely the influence of periods of recession indomestic economy, since it is more difficult for these enterprises to survive in difficult timesy conditions of the competitive environment.

Consideration at changing the sectoral structure of SMEs in 2016 it is clear that a large share made up the enterprises wholesale and retail trade – about 37%. In second place are enterprises carrying out transactions with real estate with a share of 21.7%. In third place edpr and tions of the construction sector, components about 9%. Although recalculation for wholesale and retail trade and transactions with non-residential And added an additional 0.5 to total gross value added p.p., we believe that yes structure indicates ineffective government at gift policy to support m A bad enterprises, what abouttestify high rates of development specifically in the field of trade(Fig. 3) .

In this regard, we believe that measures must be developed, standards created and must be realized etc programs to increase the share of SMEs in others about sectors of the economy. IN in particular, there should be measures have been takento attract small businesses in agriculture, teaches the urgency of the problem impotosis agricultural products Today .

Thus, the main directions e efficiency improvements Functional activity rationing of SMEs we consider:

1. Improving lending conditions aimed at reducing interest rates and solving collateral problems.

2. Providing long-term th mov for innovative enterprises with s juice-producing jobs a mi.

3. Grant support for enterprises in areas such asagriculture, industry, commodity production, IT technologies, social services.

4. Creation of a flexible taxation system , providingbenefits for developedand new types of activities.

5. Creation infrastructure volumes To comrades who make a difference new types of help cabbage soup for entrepreneurs.

6. Carrying out constant monitoring n ha efficiencyundertaken by government the gift of measures under support of enterprises in this area and their improvement.

Unfortunately, in conditions economic crisis Isa is the first to suffer from SMEs as less protected from external economists And ical influences. Despite many O government's numerical efforts to d keep small business before delivering tax holidays, subsidies,loans, grants, undertaking other measures it’s hard for him to get up to a new level of development in modern conditions. Poet o mu t Only the effective use of all instruments of state registry at ligation will help SMEs borrow own place in the Russian economy and becomesolving its modern problems.

Bibliography

1. Batova B.Z. Problems of small business development in the Kabardino-Balkarian Republic / B.Z. Batova, Z.M. Yakhutlova // Modern concepts of scientific researchdovaniya. – 2015. – No. 4. - WITH. 9.

2. Official siteMinistry of Finance of the Russian Federation: URL: http://www.minfin.ru/ (date of access: November 26, 2017).

3. federal Servicestate statistics: URL:http://www.gks.ru/wps/wcm/connect/rosstat_main/rosstat/ru/statistics/enterprise/(date of access: November 27, 2017).

4. Shidov A.Kh. Formation and management of innovative segments of the rural market b household products in solving the problemimport substitutionregional agricultural production about diators / A.Kh. Shidov, B.Z. Batova, L.Kh. Shidova // Economics and entrepreneurquality – 2014. – No. 8 (49). - WITH. 964-967. URL: http://www. intereconom. com/component/content/article/213. html.

SMALL AND MEDIUM BUSINESSES, THE PROSPECTS OF DEVELOPMENT

IN MODERN CONDITIONS

A.H. Shidov, doctor of economic sciences, professor

B.Z. Batova,

I.Y. Gedgafova, candidate of economic sciences, associate professor

Kabardino-Balkarian state university of H.M.Berbekov

(Russia, Nalchik)

Abstract. In the article, small and medium business as an important factor of development of economy in conditions of unstable external environment.It is proven that only with the effective use of tools of state regulation of this sphere will be able to take its rightful place in the economy of the country. For that analyzed data on the number of subjects of small and medium business; identifies the main factors influencing low participation in GDP, the perspectives of development in modern conditions.

Keywords: small and medium businesses, competitiveness, investment, innovation development p ment, financing, economic sanctions, economic crisis, state regulation.

Sanctions. Some people see this phenomenon as purely negative, but is it really that bad? Food sanctions, that is, a ban on the import of certain goods from abroad, have caused a phenomenon called import substitution. Products that were previously imported from the West must now be replaced with similar, but domestically produced ones.

There is often an opinion among economists that import substitution should have been started a couple of decades ago in order to provide the country with goods of its own production and create new jobs, which are always so lacking. Why they didn’t do this earlier, we won’t discuss. Now the more pressing question is: is it possible to build a small business under sanctions? We answer: you can! Business under sanctions will rely on the fact that the market niches vacated by foreign manufacturers need to be filled by someone, and small and medium-sized businesses are ideal for this. What should you do to make the most of the sanctions?

Business ideas under sanctions

Fast food with Russian food

Some of you may remember that the Soviet Union also had fast food. Only they sold not hot dogs and hamburgers, but sandwiches and dumplings, and such establishments were called “Snack Bars.” I must admit, they were quite popular. What is stopping you from opening such a Russian fast food now? The cost of producing sandwiches, dumplings, soups, pancakes and other our native food is quite low, and the establishment can be decorated quite modestly, without restaurant decor and frills.

Rest assured, you will visit such fast food no less often than Burger King or McDonald's, or even more often. After all, the price of one lunch at McDonald's will be equal to two, or maybe three lunches at a Russian diner. And if American fast foods are closed down completely soon (in modern realities, anything can happen), then people simply will have no choice.

Cheese production

Cheese is loved and consumed in almost every family. But the sanctions also affected this product - it is no longer imported from abroad. It is interesting that elite French and Italian cheeses are mainly produced in small production facilities, or even very small ones. Organizing such production in our country will not be difficult. This business idea is especially relevant for those regions whose climate is most similar to the climate of Southern Europe.

Thermal imaging equipment

All thermal imaging devices previously came to Russia only from abroad. Domestic production, if there was any place to be, was on an insignificant scale. But the areas of its application are quite wide - construction, medicine, mechanical engineering, metallurgy. If you set a goal for yourself, you can begin the profitable production of such equipment without any problems. It will definitely be in demand.

Production of fish feed

Red fish, which disappeared from store shelves due to sanctions, but soon returned, domestically produced and much more expensive, is a different story. From the perspective of small businesses, the production of compound feed is more interesting in this area. Previously, they were purchased in the same place where the fish itself was purchased - mainly in Norway. Norwegian food is of high quality, but still too expensive for many Russian fish farm owners. If you find a way to produce fish feed at a lower price point, you will definitely be in the black.

Milk farm

Milk is a product consumed by our people in incredible quantities. Before the sanctions came into force, 80% of the milk on our shelves was from abroad. Just think about how much its availability to the population has now decreased and what kind of profits you can get if you start your own dairy production. And in addition to the milk itself, you can also produce cottage cheese, sour cream, butter and other dairy products, which in any case will always be in demand.

Elite schools

Access to foreign education is now denied to many officials. And they are accustomed to teaching their children only in the best, elite educational institutions. Of course, opening an elite school for children or expensive business courses is a slow and rather complicated process. However, under sanctions, such a business becomes very, very promising.

Animal farm

Particular attention should be paid to beef production. It has always been much more profitable for our country to purchase imported beef for sale to the population than to produce it ourselves. Due to the current situation, the cost of meat has increased significantly, and now not every Russian can afford a piece of fried beef for dinner. By producing beef on domestic farms, you can sell it at an affordable price for most consumers, while still having a good income.

IT sphere

Activities in the IT field, and in particular the installation of various software, can bring additional income to programmers and other computer scientists during sanctions. This is due to the fact that the government is now gradually introducing censorship on the Internet, closing or blocking some Internet resources. It is so close to banning the use of social networks, which will undoubtedly cause a wave of discontent among the population. There will be people who want to bypass the ban and use special programs to remove blocking from sites that interest them.

Once you understand this software, learn how to install it and work with it, you’ll earn extra income.

Apple production

Most of the apples consumed by the Russian population were imported from Poland. Now Poland has imposed a ban on their import to Russia. Are we not capable of growing our own apples, no worse than Polish ones? Yes, easily. Apple trees and orchards in general are an excellent business, both “tasty” and profitable.

Real estate

Now there is more and more talk that Russia is facing a wave of emigration. Consequently, active real estate operations will begin, which will give many real estate agencies the opportunity to earn good money. It is also advised to pay attention to luxury housing outside the city - cottages, estates. In the current conditions, not every rich person will take the risk of purchasing villas abroad. You'll have to be content with real estate near Moscow.

There is no need to turn a blind eye to the negative consequences of sanctions, which also occur. But you shouldn’t allow yourself to become depressed about this either - learn to see the positives and benefit from any situation, even the not so good one. And the situation that brought us the opportunity to start a new profitable business cannot in any way be called unfavorable!