Breakdown of SME activity by sector. Goskmstat* (as of the beginning of 1995, for Russia as a whole) Agriculture. Construction

Transcription

1 Diagram 1 Breakdown of SME activity by sector Goskmstat* (as of the beginning of 1995, for Russia as a whole) Agriculture Construction Transport and communications Industry Housing, public utilities and non-production personal services Science and consultancy services General commercial activity to secure market operation Comm activity and facilitation services: trade, indus supply, sales and procurement

2 RIISNP (July 1995 as per sample) Trade and trade facilitation Agriculture Manufacture of capital goods Production of consumer goods Miscellaneous Engineering Construction Informatics, science-based consultancy Transportation of goods, communications Household services Financial services *Source: Small Entrepreneurship in Russia in Moscow, Goskomstat, pp12-13.

3 Diagram 2 Numbers of SMEs: annual trends Numbers of SMEs Annual rates of growth (%) r 1992r 1993r 1994r January-June 1995 Source: Goskomstat

4 Diagram 3 SME employment as a percentage of total 1990r SMEs with up to 100 employees 1993r, SMEs with up to 200 employees Germany Urals UK Volga-Vyatka region Luxembourg Eastern Siberia Netherlands France Belgium Western Siberia Central-Black-Earth region Northern Caucasus Ireland Far East Denmark Kaliningrad Portugal Volga region Spain North Italy North-West Greece Central region EU Russia

5 Diagram 4 Critical problems facing Russian SMEs in their day-to-day operations /07/1995 (%) 01/07/1994 (%) Rank, July 1995 Rank, July Finding suitable premises Late payments Breaches of contracts Financing working capital Build-up of interenterprise credit Recruitment of personnel Finance of capital investment Sales Unstable legislative environment

6 Diagram 5 What measures would help SMEs most? Simplification of the taxation system Beating inflation An increase in direct state support (soft credits, etc) Introduction of tax exemptions for banks Establishment of specialised banks for SMEs Establishment of SME credit cooperatives Introduction of bigger depreciation allowances Tax exemptions for regional support funds Imposed legislation on comm banks and insurance Note: The sum of replies is greater than 100%, as respondents were allowed to tick up to three boxes

7 Diagram 6 Who offered real assistance to Russian SMEs during the first half of 1995? (In % of the respondents who gave a positive reply to this question) Associations of entrepreneurs Chamber of Commerce and Industry A foreign partner Federal bodies International agencies Local authorities

8 Diagram 7 Preferred economic policy model as viewed by Russian SMEs Undecided Planned economy with a niche for small business Mixed economy Market economy with substantial elements of regulation by state Free market with minimum interference by state

9 Diagram 8 SMEs intending to change the basic parameters of their activity, (the ratio of SMEs planning to increase the given parameter to the number of SMEs planning to reduce it) Production Sales Number of employees Investment

10 Diagram 9 SME profitability level before tax in 1994 (%) Industry Other sectors Transport Trade Average Construction R&D Services Source: Goskomstat (1994)

11 Diagram 10 Investment finance viewed as the most acute problem by smes, Summer 1995 compared with Summer 1994 by sector (% of total respondents)* Sample average Engineering, R&D Residential construction Industrial construction Informatics, science-based consultancy Transport and communications 1994r 1995r Personal services Trade Manufacture of capital goods Manufacture of consumer goods Note: In the 1994 survey, the respondents were requested to name up to three most acute problems, in the 1995 survey - one only.

12 Diagram 11 Problems of working capital finance, as viewed as the most acute problem by SMEs, Summer 1995 compared with Summer 1994 by sector (% of total respondents) Sample average Engineering, R&D Residential construction Industrial construction Informatics, science-based consultancy Transport and communications 1994r 1995r Personal services Trade and mediation Manufacture of capital goods Manufacture of consumer goods Note: In the 1994 survey, the respondents were requested to name up to three most acute problems, in the 1995 survey - one only.

13 Diagram 12 Traditional sources of finance for capital investment for Russian SMEs Non-banking institutions and private individuals Private banks Whole sample State specialised banks SME looking for foreign investment Domestic sources

14 Diagram 13 Main problem in SME relations with Russian banks Excessively lengthy processing procedure Unwillingness to work with small business Unwillingness to credit long-term investments SMEs looking for foreign investment Whole sample Problems with collateral High interest rate on credits