All-Russian Non-governmental Organization of Small and Medium-Sized Business OPORA RUSSIA Sergey R. Borisov President of OPORA RUSSIA Zurich, 19 March 2007

2 SMALL ENTREPRENEURSHIP today 1 million 29 thous. – small enterprises 1 million 29 thous. – small enterprises 2 million 600 thous. - entrepreneurs 2 million 600 thous. - entrepreneurs Number of employees in SE - 16,7 million people or 25% of total number of employees Number of employees in SE - 16,7 million people or 25% of total number of employees 13-15% in structure of GDP 13-15% in structure of GDP

3 Branch structure of small entrepreneurship 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% 3% 2% 17%

4 PROBLEMS of Small Enterprises’ Development PROBLEMS of Small Enterprises’ Development financial condition - more than 50 % of entrepreneurs estimate their position as “relatively stable, enough to maintain business, but not enough to develop it further”; financial condition - more than 50 % of entrepreneurs estimate their position as “relatively stable, enough to maintain business, but not enough to develop it further”; business real estate - about 70 % of entrepreneurs are unable to purchase due to high prices or due to artificial restriction of access to auctions; business real estate - about 70 % of entrepreneurs are unable to purchase due to high prices or due to artificial restriction of access to auctions; influence of administrative resource on competition. Public servants are active players of market relations; influence of administrative resource on competition. Public servants are active players of market relations; costs to overcome administrative barriers run: costs to overcome administrative barriers run: – to 8,5 % of proceeds ,6 %.

5 Federal Program to Support Small Enterprises Federal budget funds allocated to support small enterprises (million Rubles) Federal budget funds allocated to support small enterprises (million Rubles) In 2005 – 1500 In In 2007(already) – 3800 Funds are submitted to regions on terms: 50% - from federal government Funds are submitted to regions on terms: 50% - from federal government 50% - from regional administrations

6 OPORA RUSSIA today OPORA RUSSIA All-Russian Public Organization of Small and Medium-Sized Entrepreneurship (created in September 2002) OPORA Association of entrepreneurial organizations of Russia (created in September 2001) Commissions & Committees Coordinators in 7 Federal Districts Entrepreneurialregional associations and unions Entrepreneurial sectoral associations and unions (101) Entrepreneurs Above regional divisions Entrepreneurs Approx. 4,5 million jobs

7 REGIONAL DIMENSION ■ OPORA RUSSIA has its divisions in 79 of 88 regions of the country Regions where OPORA RUSSIA divisions are set up

8 OPORA’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, etc fight against corruption, etc Diversification of small business Diversification of small business reduction of share of retail trade, reduction of share of retail trade, increase of share of production, services, innovations increase of share of production, services, innovations Development of SMEs support infrastructure Development of SMEs support infrastructure industrial parks, industrial parks, technoparks, technoparks, clusters, clusters, business incubators business incubators Development of international cooperation. Development of international cooperation.

9 OPORA’s studies “Innovation economy and small business”: “Innovation economy and small business”: Study of conditions and problems of development of small innovative entrepreneurship (jointly with the All-Union Centre of Public Opinion Study) Study of conditions and problems of development of small innovative entrepreneurship (jointly with the All-Union Centre of Public Opinion Study) Forum “Innovation economy and small business.” Forum “Innovation economy and small business.” – “Conditions and factors of development of small entrepreneurship in regions of Russia” – “Conditions and factors of development of small entrepreneurship in regions of Russia” jointly with the All-Union Centre of Public Opinion Study and in under support of the Ministry of Economic Development and Trade jointly with the All-Union Centre of Public Opinion Study and in under support of the Ministry of Economic Development and Trade 2007 – “Small and medium-sized entrepreneurship in development of industry and technologies”: 2007 – “Small and medium-sized entrepreneurship 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” 28 February 2007, Annual forum “Small business in industrial policy” 28 February 2007, Study of factors and conditions of development of small entrepreneurship in industry, Study of factors and conditions of development of small entrepreneurship in industry, Covering results of the project and presenting concrete proposals to the bodies of power. Covering results of the project and presenting concrete proposals to the bodies of power.

10 OPORARUSSIA Ministry for Economic Development and Trade of the Russian FederationInternationalnongovernmentalorganizations and programs International cooperation PARTNERS (international business-associations) CGPMEFrance CECCChinaOSECSwitzerland US-RUSSIACENTER for entrepreneurship USA KFSBKoreaFICCIIndia SBFSingapore SARIOSlovakia FFEFinland OPORA EUROPE OPORA ASIA OPORA EUROPE OPORA ASIA Zurich Shanghai Zurich Shanghai Ministry for Foreign Affairs of the Russian Federation UNICEEU

11 OPORA EUROPE Official representative of OPORA RUSSIA The main aim of OPORA EUROPE is to develop and strengthen business relationships between Russian and European small and medium-sized companies. Services provided by OPORA EUROPE Information Business opportunities in Russia – projects overview Business opportunities in Russia – projects overview Latest changes in Russian legislation Latest changes in Russian legislation Target market overview Target market overviewConsultancy Assistance in establishing business relationships with credible banks Assistance in establishing business relationships with credible banks Legal support, including legal protection and commercialization of intellectual property Legal support, including legal protection and commercialization of intellectual property Key people in the target countries to facilitate business Key people in the target countries to facilitate business Business partner search Identifying, screening and selecting partners Identifying, screening and selecting partners Assistance in negotiations Assistance in negotiations

12 Joint strategy in the following fields Introduction and using the experience of Switzerland in development of business incubators, industrial parks, technical parks, clusters Introduction and using the experience of Switzerland in development of business incubators, industrial parks, technical parks, clusters Exchange of information in current SME policy Exchange of information in current SME policy Participation of SME in creating and fulfillment of regional industrial policy Participation of SME in creating and fulfillment of regional industrial policy Development of innovation in SME and protection of intellectual property Development of innovation in SME and protection of intellectual property Using opportunities of SME in small autonomous energy industry, tourism and other kinds of services Using opportunities of SME in small autonomous energy industry, tourism and other kinds of services All mentioned points will be discussed during Summit in Bern in April 2007.