Development of small business in Russia

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development of small business in Russia has a short history in the country's economic development.Small business goes back to 1990, when it was formed through the establishment of a limited liability company, which became part of their receivers previously created cooperatives.

Small business - a business that is based on the business activities of small enterprises and small firms, non-industrial and industrial associations and corporations.For business entities SME business organizations include the formation of a legal entity, and individuals engaged in business activity without formation of legal entities, but with the introduction of the Unified State Register of individual entrepreneurs, as well as peasants and farmers.

In the first half of the nineties the development of small business in Russia has received a new round of mass due to the process of privatization of state enterprises.The redistribution of state property further contributed to the development of entrepreneurship.In 1995, it adopted the Federal Law "On State Support of Small Business in the Russian Federation", which regulated the general issues and the development of small business in Russia.There were also identified organizational and legal norms, criteria for small businesses, including aspects of state support of small business, taxation and more.

development of all forms of business activity depends on two conditions - the economic situation in the country and the ability of the business object avail himself of his right to further implement economic purposes and profit.These factors affect the development of small business, which is very sensitive to the conditions created by him.

history of Russian business in a short time has passed all stages of evolutionary development.The result is a certain capital, which contributed to the expansion of investments in all areas of the national economy.

Currently, the development of small business in Russia is included in the program of de-monopolization of all the structures of the economy.At this stage, it envisages unbundling of monopoly-scale industries through the provision of production units into separate small organizations, and the establishment of subsidiaries.State program is also designed infrastructure to support small business in the face of the network of the largest Russian banks, which has worked for many years in the lending market, including small and medium-sized businesses.Among the banks that will issue preferential loans to small businesses - the Savings Bank, the Agricultural Bank, Bank Uralsib and others.

Today, a group of international experts identified a number of reasons, which hamper the development of small business in Russia:

  1. difficult economic and financial situation in the country, the decline in production, a weak legal protection of entrepreneurs, the gap of economic ties.
  2. low level of legal and economic knowledge of entrepreneurs, bad business ethics, both in business as well as in the public sector.
  3. negative attitude towards entrepreneurs of the population.
  4. Weak action in the field of state support of small business.
  5. Reduced purchasing power of the population into mass production.

However, as international experience shows that small business is unparalleled in their ability to revive the economy and bring it out of the crisis.