Interview with Larisa Butenko , a member of the Public Expert Council on development of small and medium-sized businesses in Primorsky region.  

Topic: support of small and medium-sized business in Primorsky region.

- How do the entrepreneurs that participate in this Public Expert Council assess the overall state of the development of small and medium-sized business in the region?

-In general, taking into account present situation of our country economy, the situation is quite complicated. Entrepreneurs are the first to feel any economy leaps. Today entrepreneurs of Primorsky region are in difficult situation, since the purchasing power of the population has seriously decreased. Entrepreneurs have to optimize their costs to maintain business. In this situation, entrepreneurs need state support. There are a lot of support methods, including grants and loans. But, unfortunately, not all entrepreneurs of the region, especially in remote areas, are aware of existing instruments of state support.

- In general, the entrepreneurial initiative is rather high in Primorsky region, people are ready to invest into businesses. Such mechanisms as Territories of Priority Development and Vladivostok Free Port are already functioning in the region.  Are these mechanisms available to the entrepreneurs from remote areas of the region?

-Of course, the mechanisms of Territories of Priority Development and Vladivostok Free Port effect the entrepreneurial activity of Primorsky region and the entire Far Eastern region. It is rather easy to become a resident of Territories of Priority Development and Vladivostok Free Port, so any small entrepreneur can manage it. But many entrepreneurs are still examining. Small businesses do not yet fully understand their role in these projects. At this stage, major residents should explain who they want to see as their partners, what kind of industries? An association of residents of the free port has been established recently, we hope, that they will actively work on this matter.

-In addition to the mechanisms of support of entrepreneurships on the territories of Priority Development zones and Vladivostok Free Port, there are also mechanisms of support of small and medium-sized businesses, which are initiated by the Administration of Primorsky region.  How popular are they among the entrepreneurs?

- Entrepreneurs are mostly interested in tax incentives measures. Now the initiative on reduction of tax rates for the entrepreneurs of the region is being promoted. In addition, there are grants for business development. The most difficult thing is not to get grant, but to properly report on received money. Since entrepreneurs do not always know how to properly report on the funds provided. I hope that the training seminars will correct this situation.

-You study the experience of development of small businesses in neighboring countries, such as Japan and China. Is there something that our entrepreneurs should pay attention to?

- They have absolutely different system of distribution of powers. But there is one moment we should pay attention to: the cooperation of small entrepreneurs is very developed there. The system of cooperation helps to sell products and protect entrepreneurs’ rights.

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