A socially oriented non-financial development institution and a major organizer of nationwide and international conventions; exhibitions; and business, public, youth, sporting, and cultural events.

The Roscongress Foundation is a socially oriented non-financial development institution and a major organizer of nationwide and international conventions; exhibitions; and business, public, youth, sporting, and cultural events. It was established in pursuance of a decision by the President of the Russian Federation.

The Foundation was established in 2007 with the aim of facilitating the development of Russia’s economic potential, promoting its national interests, and strengthening the country’s image. One of the roles of the Foundation is to comprehensively evaluate, analyse, and cover issues on the Russian and global economic agendas. It also offers administrative services, provides promotional support for business projects and attracting investment, helps foster social entrepreneurship and charitable initiatives.

Each year, the Foundation’s events draw participants from 208 countries and territories, with more than 15,000 media representatives working on-site at Roscongress’ various venues. The Foundation benefits from analytical and professional expertise provided by 5,000 people working in Russia and abroad.

The Foundation works alongside various UN departments and other international organizations, and is building multi-format cooperation with 173 economic partners, including industrialists’ and entrepreneurs’ unions, financial, trade, and business associations from 78 countries worldwide, and 179 Russian public organizations, federal and legislative agencies, and federal subjects.

The Roscongress Foundation has Telegram channels in Russian t.me/Roscongress, English – t.me/RoscongressDirect, and Spanish t.me/RoscongressEsp. Official website and Information and Analytical System of the Roscongress Foundation: roscongress.org.

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The National Project to Develop SMEs: What Will Be Done in the Far East?
12 September 2018
Entering foreign markets is one way to develop small and medium businesses in the Far East

According to our statistics, the number of export contracts from the Far East has increased by roughly 30% over the past year. In addition to lending, we are actively developing and supporting export-oriented companies using such working capital financing instruments as trade financing, international letters of credit, and international factoring. All these instruments enable companies that are entering new markets to develop more actively and cooperate with their partners in APR countries — Ilya Polyakov, Chairman of the Management Board, ROSBANK .

All of Northeast Asia can and should be a market for the Primorye Territory [...] We are also promoting and developing expertise in this matter because one of the main problems is the inability to operate on foreign markets — Konstantin Bogdanenko, Vice-Governor of Primorsky Territory .

The number of ambitious SMEs that are entering foreign markets is constantly growing. Our corporation offers such companies a programme and mechanisms for assistance — Yasukazu Irino, Executive Vice President, Japan External Trade Organization (JETRO).

Lending to SMEs in the Far East is growing rapidly

Employment and the number of small companies in the Far East is about the same as it is throughout the Russian Federation in principle. Pay attention to how the loan portfolio behaves. Whereas growth throughout Russia is roughly 1%, it’s nice to see that lending to small businesses in the Far East is growing at a pace that is 12 times faster — Andrey Sharov, Vice President, Head of GR, Sberbank.

Low level of entrepreneurial activity

We see that the share of people who want to open a new business and want to start their own business is not very high, and this is a problem that needs to be addressed — Maxim Oreshkin, Minister of Economic Development of the Russian Federation.

The level of the economically active population in the Far East is lower than the national average. In recent years, a significant outflow has been seen in the population and this, of course, affects the quality of the population. In addition, the quality of the business environment is lower than the average for Russia [...] We need to not only concentrate on measures of monetary support, but also on training and the development of human capital — Vasily Orlov, Governor of Amur Region.

A lack of funding, bigger shadow economy, and insufficient awareness about support measures

As a factor hampering the development of SMEs in the Far East, the lack of financial resources accounts for 70%. Competition with the shadow sector is intensifying. 80% and 83% of people don’t really know about or are poorly informed about support measures and opportunities — Andrey Sharov, Vice President, Head of GR, Sberbank.

We have concluded a concession agreement for 12 years. This is a long contract, and we could not fully utilize the legislation that currently exists because banks aren’t really providing money for 12 years down the line at this point [...] Banks are ready to give money for 3 years. We’ve only read about project financing in books — Vladimir Rimer, Co-Founder, Safe Roads of the JAR.

Underdevelopment of additional sources of funding

It would be nice to additionally focus on unconventional sources of funding — ones that don’t presume the existence of any physical infrastructure: crowdfunding, crowdsourcing, factoring — these are what could serve as an additional source of funds for entrepreneurs, and what has been forgotten for some reason today — Vadim Zhivulin, Deputy Minister of Economic Development of the Russian Federation.

Making it easier for SMEs to access financing

The most costly project in terms of budget funds associated with the new programme is the subsidization of interest rates for SMEs. The key product that the end borrower will receive is a loan at a rate of the key interest plus 2%, but no more than 8.5%. So it’s a rate that is acceptable and substantially lower than the average level of the borrowing cost on the market. We need to reach a point under the programme where the volume of loans granted exceeds RUB 1 trillion — Maxim Oreshkin, Minister of Economic Development of the Russian Federation.

There are sectors or areas where respected banks are extremely reluctant even with the subsidizing of rates. I’m referring to startups, agricultural cooperatives, the Far Eastern Federal District as a regional section, and the North Caucasus Federal District. We will supplement our guarantees in the sectors there, gradually stepping them up from RUB 1 trillion to RUB 1.2 trillion and over the years to RUB 10 trillion. This will substantially expand the market and be a significant help to the market — Alexander Braverman, Member of the Board of Directors, Chief Executive Officer, Chairman of the Management Board, SME Corporation.

We have provided RUB 142 million in business support this year. This is 20 times more than last year — Vasily Orlov, Governor of Amur Region.

Bringing the self-employed out of the shadow sector

Another aspect is related to shadow employment and shadow competition. A separate project is being implemented in this regard to get the self-employed involved in the legitimate stream of commerce. This means creating new tax regulations with a rate of 4% when providing services or selling goods to individuals and a 6% rate when providing services to legal entities — Maxim Oreshkin, Minister of Economic Development of the Russian Federation.

Promoting entrepreneurship

We need to actively promote success stories that we already have and talk about positive trends, how to do business, and that this isn’t as big of a problem as it seems to many, and show that you can achieve great success in this way — Maxim Oreshkin, Minister of Economic Development of the Russian Federation.

Modernizing control and oversight activities

We can cite the example of France when our colleagues introduced some very good things that led to a reduction in control and oversight activities and saved EUR 2.2 billion. There are a few basic principles. The first is the declarative procedure for SMEs: if the monitoring authorities don’t respond within a certain time, the reporting is conditionally taken into account, information is accepted, etc. The second important principle is to say once and for all that enterprises don’t have to submit the same information in different forms to different control and oversight bodies. The third thing is to simplify access to public procurements in terms of the administrative burden — Alexey Nazarov, Partner, Head of Strategy and Operation, KPMG in Russia.

Developing channels for communication between business and the government

We should once again take a look at the channels of communication with entrepreneurs. There is still demand for convenient, comfortable, and high-quality channels for interaction between entrepreneurs and the authorities [...] We should also focus on the use of digital platforms and electronic methods of interaction. This is something that will seriously enhance the convenience of working with support institutions — a format in which entrepreneurs can learn about services, receive services, and interact with the authorities and development institutions all within a single window. This is something that has been talked about for a long time, but we still haven’t managed to realize at all — Vadim Zhivulin, Deputy Minister of Economic Development of the Russian Federation.

Attracting entrepreneurs to public business organizations

Public organizations must play an enormous role. Only every tenth entrepreneur is a member of a public business organization in Russia. And this is probably one of the reasons why our business environment is not what we would like it to be — Alexander Kalinin, President, All-Russian Non-Governmental Organization of Small and Medium-Sized Businesses Opora Russia.

The material was prepared by the Russian news agency TASS