Presentation of the President of the All-Russian Non-governmental Organization of Small and Medium Business “OPORA RUSSIA” Sergey R. Borisov Amsterdam, November 18, 2007

2 SMALL ENTREPRENEURSHIP today 1 million 37 thous. – small enterprises 2 million 994 thous. - entrepreneurs Number of employees in SE – 16,7 million people or 25% of total number of employees 15% in structure of GDP

3 Sectoral structure of small entrepreneurship Small Enterprises (SE)*SE +Private Entrepreneurs *Number of small enterprises (legal persons) in sectors of economy according to the Federal service of the State statistics 50% 13% 3% 2% 17%

4 Conditions and factors of development. OPORA RUSSIA’s monitoring Estimation of sustainability of financial position Access to industrial and office premises Limited access to some industries Administration preferences to “friendly” companies Obstacles of public authorities Bribes as a usual matter Checks impede the companies’ activity Incompetence of businessmen Positive estimations Negative estimations

5 OPORA RUSSIA today OPORA RUSSIA All-Russian Public Organization of Small and Medium-Sized EntrepreneurshipOPORA 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 (100) Entrepreneurs About regional divisions Entrepreneurs Approx. 4,6 million jobs

6 ■ OPORA RUSSIA has its divisions in 80 of 88 regions of the country Regions where OPORA RUSSIA divisions have been set up Regional dimension

7 OPORA’s priority activities Improvement of conditions for development of SME: - programs and infrastructure of SMEs support - legislative regulation - procedures and state management - law implementation - access to resources

8 OPORA’s priority activities Fight against corruption Administrative reform Anticorruption expertise of legislation Protection of entrepreneurs rights

9 OPORARUSSIA Ministry for Economic Development and Trade of the Russian FederationInternationalnongovernmentalorganizations and programs International cooperationPARTNERS (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

10 OPORA’s priority activities Diversification of small business –reduction of share of retail trade, –increase of share of industry, services, innovations Development of international cooperation

11 Survey «Small Entrepreneurship in development of industry and technologies» conducted in 5 pilots regions Perm region Chemical industry Arkhanghelsk region Wood processing Republic of Tatarstan Automotive industry Nizhegorodskaya area Automotive industry Krasnodarsky kray Food industry Tomskaya area IT Republic of Tatarstan Petrochemistry

12 System of factors of development of small and medium- sized business in industry Cooperation with parent companies Access to market and competition Financial resources Infrastructure Human resources and skills Technological and innovation potential Administrative regulation Access to market Access to raw materials Sectoral structure Conditions for competition Relationship with parent company Cooperation of suppliers Specialized services Industrial equipment Access to technologies Administrative barriers Sectoral regulation and standards Engineers and technicians Qualified workers Management Specialized programs 1 Financing of the launch of the company Resources for development Industrial premises Logistics infrastructure Exhibition space Incubators

13 Mechanism of contest co-financing stimulates regions to construct industrial parks Project Assignee Federal Ministry Business associations Expert community Assignee Institute of development Contest Contest commission ) Subject of Federation Investor 30% 50% 20% Project

14 The most important direction – assistance to export Assistance to export compensation of expenses on goods promotion (exhibitions, certification); training and consulting centers; creation of special structure.

15 Thank you!