Support of small and medium-sized businesses in NCFD discussed in Moscow

Today, a meeting, chaired by the Deputy Plenipotentiary Representative of the President of the Russian Federation in the North Caucasus Federal District, Oleg Fadeev, was held in Moscow with the participation of the Deputy General Director of the Federal Corporation for the Development of Small and Medium Business (SME Corporation) Svetlana Kuznetsova and representatives of the executive authorities of the NCFD constituent entities. The meeting was devoted to discussion of support of small and medium business.

As Oleg Fadeev noted in his introductory speech, the possibility of organizing a private entrepreneurial initiative and small/medium business is a necessary condition for the country's successful development. "Small business is an institution that provides employment for the population. In order to develop small and medium-sized businesses in Russia, a multi-channel financial support system has been formed. The relevant program 'Economic development and innovative economy' is being implemented in the Ministry of Economic Development," he said.

"The total amount of subsidies provided by this program from the federal budget to our subjects in the NCFD in 2017 is about 778 million rubles. The Federal Corporation for the Development of Small and Medium-Sized Enterprises renders its support to entities in the framework of providing guarantees, which allows entrepreneurs to attract financing," the Deputy Plenipotentiary Representative of the President of the Russian Federation in the NCFD added.

There are mechanisms of microfinance, credit and guarantee support for small and medium-sized businesses in the NCFD, but problems remain. "In order to support the activities of the constituent entities, business incubators operate in the Okrug to provide office and industrial premises on preferential terms of rent. But despite the measures taken, key problems remain in the region - such as violation of the time for provision of state and municipal services, lack of positive changes in financing of small and medium-sized businesses with long-term credit facilities with a low interest rate," Oleg Fadeyev explained.

He recalled that almost all subjects of the North Caucasus Federal District depend on the federal budget.

"The biggest illness of the North Caucasus Federal District is a large number of unemployed, 10% of population or more." The development of small and medium-sized businesses should be one of the directions of work. There is a hope to convert medium-sized businesses into a large one. Then it will be possible to count on incomes to both the republican and federal budgets," Oleg Fadeyev concluded.