Small businesses in Ingushetia

Businessmen complain about high taxes, continual inspections, red tape
and kickbacks

Ingushetia remains a labour-abundant region with large numbers of
unemployed people. Taking this into consideration, the authorities
decided that the development of the small-scale business should become
a crucial task for the stable development of the republic. The complex
support of small and medium-scale business in Ingushetia provided by
funding has been implemented only from 2009 in the framework of the
program “Development of subjects of small and medium-scale business in
the Ingushetia republic for 2009-2012”. Previously, in connection with
the scantiness of the republic’s budget and the lack of approved
machinery, state support of small-scale business was conducted in a
very frugal way.

Meanwhile, businessmen complain about the lamentable state of
small-scale businesses, about very high taxes and continual
inspections, ineradicable red tape barriers and kickbacks of every
sort. The contribution of Russia’s small-size business to the GDP of
the country is negligible, whereas in developed countries it exceeds
40%. But Moscow realizes that by resolving the problems of small-scale
business it will get a boost in the form of the growth of Russia’s
living standards and economy. President Dmitry Medvedev specified the
problem, saying that small-scale business must become a leader in
working efficiency. The Federal Ministry of Economic Development and
Trade has highlighted the current problems of the organization of
efficient micro financing of small-scale businesses.

The ministry of economy and industry of Ingushetia has managed to
safeguard the co-financing of the “Development of subjects of small
and medium-scale business in the Ingushetia republic for 2009-2012.”
Ingush minister of finance and industry, Visita Aushev, state support
for small and medium business will create 1,132 new jobs, on top of
the 283 created already. Business courses and seminars have also been
started.

According to Aushev, the problems curbing the further development of
small and medium-scale business in Ingushetia are slightly different
from elsewhere in Russia- namely a weak legal system to protect the
activities of “miniature enterprises,” restricted access to funds,
mainly due to a lack of mortgage fund for the credit institutions and
high rental for premises, a lack of land in places accessible for
business, high tax rates and the problem of sales of goods. Measures
for removing these obstacles are being introduced. A commission for
the protection of sole traders and business has been created by order
of the president of Ingushetia.

Pavel Tzoroev, Nazran. Exclusively for VC