Today, it is obvious that any country that is in one way or another involved in the world market (and the state cannot be completely outside it) is subject to the influence of external factors.

Naturally, the same applies to Russia, a country with a developing economy, which today is under attack from Western sanctions. Sanctions, being external factors limiting the economy, have a certain impact on the activities of all companies in the country: from large industrial agricultural holdings to micro-enterprises.

In addition, and importantly, the economic situation in the state is also affected by the countermeasures that Russia has applied towards the Western powers. In this situation, domestic business finds itself between the hammer of sanctions from Western democracies and the anvil of retaliatory measures taken by the government of our country.

Being under the yoke of sanctions, businesses of any level inevitably face problems. However, if large enterprises most often have the necessary reserves and escape routes that help them survive times of crisis, then representatives of small businesses are often unable to withstand such a blow.

These arguments are confirmed by statistics. Thus, according to a survey conducted by the Russian Union of Industrialists and Entrepreneurs, almost half (48%) of representatives of domestic companies participating in the survey are confident that sanctions have an impact on the Russian economy. Moreover, about a third of all respondents expressed the opinion that both the sanctions applied against the Russian Federation and the response measures of our government have an impact on the activities of enterprises.

The impact of sanctions on the economy, according to entrepreneurs, is multidisciplinary in nature, as evidenced by graph No. 1.

Thus, according to business representatives, the most problems are caused by rising prices for raw materials and equipment and a decrease in the availability of loans.

If we take into account the problems that entrepreneurs faced after the imposition of sanctions, the results of another study conducted by Moscow City Statistics Service, which concerned the activity of small business representatives in the Moscow region, are not surprising.

Thus, based on the data obtained, we can conclude that today the growth rate of the number of small enterprises in Moscow has decreased significantly compared to 2011 (Table No. 2).

Thus, we can conclude that economic sanctions had a strong impact on the economic situation in the country as a whole and on the activities of small businesses in the Moscow region in particular. A decrease in the growth rate of the number of small businesses will have a negative impact not only on the development of the city, but also on the well-being of citizens. Despite the slight increase in the number of micro-enterprises, today there is no talk of positive trends.

Today, prominent experts in this field are discussing the negative impact of sanctions on small businesses. Thus, the vice-president of the National Institute for Systematic Research of Entrepreneurship Problems, Vladimir Buev, is confident that despite the hypothetical positive potential of Russian counter-sanctions, they will inevitably hit the country’s economy, in particular small businesses and the agricultural sector, since for its modernization and growth in a crisis investments are needed, which are coming into the Russian economy in ever smaller quantities.

However, some government officials see a positive outlook in this situation. For example, the secretary of the public chamber, Alexander Brechalov, is confident that the current circumstances are a good chance to diversify the economy and enter a new round of positive development. In addition, many experts agree that import substitution, to a certain extent, can have a positive impact on the country’s economy. However, in the context of a reduction in the number of subsidies and the curtailment of government support programs for small businesses, the idea that representatives of small businesses will really be able to take an active part in saving the country’s economy looks dubious.

Gorchakov Grigory

Vice-President of the Avanti Association

Sanctions. Some people see this phenomenon as purely negative, but is it really that bad? Food sanctions, that is, a ban on the import of certain goods from abroad, have caused a phenomenon called import substitution. Products that were previously imported from the West must now be replaced with similar, but domestically produced ones.

There is often an opinion among economists that import substitution should have been started a couple of decades ago in order to provide the country with goods of its own production and create new jobs, which are always so lacking. Why they didn’t do this earlier, we won’t discuss. Now the more pressing question is: is it possible to build a small business under sanctions? We answer: you can! Business under sanctions will rely on the fact that the market niches vacated by foreign manufacturers need to be filled by someone, and small and medium-sized businesses are ideal for this. What should you do to make the most of the sanctions?

Business ideas under sanctions

Fast food with Russian food

Some of you may remember that the Soviet Union also had fast food. Only they sold not hot dogs and hamburgers, but sandwiches and dumplings, and such establishments were called “Snack Bars.” I must admit, they were quite popular. What is stopping you from opening such a Russian fast food now? The cost of producing sandwiches, dumplings, soups, pancakes and other our native food is quite low, and the establishment can be decorated quite modestly, without restaurant decor and frills.

Rest assured, you will visit such fast food no less often than Burger King or McDonald's, or even more often. After all, the price of one lunch at McDonald's will be equal to two, or maybe three lunches at a Russian diner. And if American fast foods are closed down completely soon (in modern realities, anything can happen), then people simply will have no choice.

Cheese production

Cheese is loved and consumed in almost every family. But the sanctions also affected this product - it is no longer imported from abroad. It is interesting that elite French and Italian cheeses are mainly produced in small production facilities, or even very small ones. Organizing such production in our country will not be difficult. This business idea is especially relevant for those regions whose climate is most similar to the climate of Southern Europe.

Thermal imaging equipment

All thermal imaging devices previously came to Russia only from abroad. Domestic production, if it took place, was on an insignificant scale. But the areas of its application are quite wide - construction, medicine, mechanical engineering, metallurgy. If you set a goal for yourself, you can begin the profitable production of such equipment without any problems. It will definitely be in demand.

Production of fish feed

Red fish, which disappeared from store shelves due to sanctions, but soon returned, domestically produced and much more expensive, is a different story. From the perspective of small businesses, the production of compound feed is more interesting in this area. Previously, they were purchased in the same place where the fish itself was purchased - mainly in Norway. Norwegian food is of high quality, but still too expensive for many Russian fish farm owners. If you find a way to produce fish feed at a lower price point, you will definitely be in the black.

Milk farm

Milk is a product consumed by our people in incredible quantities. Before the sanctions came into force, 80% of the milk on our shelves was from abroad. Just think about how much its availability to the population has now decreased and what kind of profits you can get if you start your own dairy production. And in addition to the milk itself, you can also produce cottage cheese, sour cream, butter and other dairy products, which in any case will always be in demand.

Elite schools

Access to foreign education is now denied to many officials. And they are accustomed to teaching their children only in the best, elite educational institutions. Of course, opening an elite school for children or expensive business courses is a slow and rather complicated process. However, under sanctions, such a business becomes very, very promising.

Animal farm

Particular attention should be paid to beef production. It has always been much more profitable for our country to purchase imported beef for sale to the population than to produce it ourselves. Due to the current situation, the cost of meat has increased significantly, and now not every Russian can afford a piece of fried beef for dinner. By producing beef on domestic farms, you can sell it at an affordable price for most consumers, while still having a good income.

IT sphere

Activities in the IT field, and in particular the installation of various software, can bring additional income to programmers and other computer scientists during sanctions. This is due to the fact that the government is now gradually introducing censorship on the Internet, closing or blocking some Internet resources. It is so close to banning the use of social networks, which will undoubtedly cause a wave of discontent among the population. There will be people who want to bypass the ban and use special programs to remove blocking from sites that interest them.

Once you understand this software, learn how to install it and work with it, you’ll earn extra income.

Apple production

Most of the apples consumed by the Russian population were imported from Poland. Now Poland has imposed a ban on their import to Russia. Are we not capable of growing our own apples, no worse than Polish ones? Yes, easily. Apple trees and orchards in general are an excellent business, both “tasty” and profitable.

Real estate

Now there is more and more talk that Russia is facing a wave of emigration. Consequently, active real estate operations will begin, which will give many real estate agencies the opportunity to earn good money. It is also advised to pay attention to luxury housing outside the city - cottages, estates. In the current conditions, not every rich person will take the risk of purchasing villas abroad. You'll have to be content with real estate near Moscow.

There is no need to turn a blind eye to the negative consequences of sanctions, which also occur. But you shouldn’t allow yourself to become depressed about this either - learn to see the positives and benefit from any situation, even the not so good one. And the situation that brought us the opportunity to start a new profitable business cannot in any way be called unfavorable!

With all the understanding of the fact that small business is the basis of the entire economy of the country, our fellow citizens are less and less often visited by the desire to engage in individual activity, although at the dawn of the century the situation was exactly the opposite. The problems of small businesses in Russia, which are caused by various factors and phenomena, are to blame for this.

What problems do small businesses face?

The path along which the development of small forms of entrepreneurship in the Russian Federation is taking place has its own specifics and features. This is due, first of all, to mentality, an unstable economy, and the lack of a business culture in general.
When starting your own business, you need to understand that prosperity or collapse will depend on a number of factors - external and internal.

The entire range of emerging difficulties can be divided into several groups:

• organizational;
• logistical problems;
• financial;
• credit insecurity.

It is no secret that the normal functioning of any enterprise is possible only if there is a harmonious combination of the interests of consumers, entrepreneurs and the state.

Internal problems

The problems of small business development in Russia begin, first of all, with the enterprise itself. Conventionally, they can be called internal obstacles.

• Money

It is becoming increasingly difficult to obtain and earn them. It all starts with the starting capital, which is the accumulated funds. With their skillful use, you can achieve good results, but this requires a fresh idea, competent planning, and constant improvement of products and services. And even if you have enough money, the situation may be completely different for your clients who are delaying payments, repayment of debts and payments on bills.

• Planning

Or rather, we will even talk about his absence. The reason for this is directly related to the lack of knowledge in the field of business, and the result is panicky spending of money on all sorts of problems that arise, which ultimately leads to bankruptcy. If you do have a development plan, do not forget to revise it based on rapidly changing economic conditions.

• Management

Often, a company leader forgets about his main responsibilities as a manager and switches to the functions of an ordinary manager. The key to successful management is a properly selected team to which the manager can delegate some of the responsibilities.

External problems

Opening a small business during a crisis in 2019 is a rather risky undertaking. Before you really decide to take such a step, you need to clearly understand what external factors can affect the overall success of the business.

Imperfection of legislation and tax system

The first regulatory document on small business was adopted back in 1995. Over the years, it has become completely clear that this legislation has a lot of shortcomings that not only do not contribute, but also hinder the formation of business in our country. The next document was signed in 2007 and today more and more changes are being made to it every year.

The state clearly regulates the size of enterprises, forms of ownership, and level of income. The main restraining force is numerous reports in endless instances. Penalties in case of late submission of reporting documents are no less detrimental. And even despite various business support programs and a simplified tax collection system for small businesses, the amount of these taxes still remains prohibitive for many.

Administrative barriers

Excessive regulation of small businesses in the Russian Federation also creates problems. They are usually called administrative barriers. These include:

• numerous checks;
• time-consuming registration procedures and obtaining the necessary permits;
• endless approvals in various authorities.

Practice shows that the fewer obstacles the state creates for creating an enterprise, obtaining licenses, entering the international market, or attracting hired employees, the better small businesses feel.

Removing such administrative obstacles promises great potential for business prosperity.

Access to execution of government orders

It has long been known that the specific needs of the state are such that some of them can be satisfied exclusively by small businesses, since such orders are not of particular interest to large manufacturers. But this allows small companies to fully launch their production capacities. But corruption schemes often arise here, and it becomes simply impossible for owners of small companies to receive even the most minimal government order.

Financing

It is impossible not to highlight the problems of lending to small businesses. There has not yet been a great desire on the part of banks to allocate credit funds for the development of small businesses in our country. This is due to great risk and the inability of companies to repay borrowed capital. According to experts, only 30% of all applicants in our country receive a loan request, and microcredit is available to an even smaller number - only 10%.

Great difficulties arise for those who are planning to open their own enterprise. It is much easier to get a loan if you have already achieved some results and have an unblemished credit history. In this case, many banking institutions are even ready to make concessions - reduce interest rates, soften the terms of repayment terms and the size of the commission.

Lack of qualified employees

This phenomenon is directly related to insufficient financing of the enterprise. Naturally, when choosing a place of work, a professional manager or production worker will go to a company with a large budget, where he will be offered a completely different level of salary than in a small company, where he often has to work with enthusiasm.

Sanctions

The impact of sanctions on small businesses in Russia became noticeable last year. This was reflected in rising prices for food products, an increase in the exchange rate of the euro and dollar, and restrictions on entering the international market. Small businesses have proven to be the most vulnerable in the entire economic sector. If before the introduction of restrictions small firms were already operating on the edge of profitability, then in the new conditions many of them will find themselves outside the economy altogether.

Prospects for the development of small businesses

A great advantage of the further development of small businesses in our country is the fact that the state is fully aware that the loss of this economic layer will lead to irreparable changes. First of all, the middle class of the population will disappear, social discrimination will begin, and the level of prices for goods and services will get out of control.

In this regard, a government program is being implemented, according to which in the period 2015-2016 the number of individual entrepreneurs should increase by 2 million throughout the country. Good prospects for small businesses in Russia in 2019 await those enterprises that offer essential goods: food, clothing, shoes. There are also chances for those who provide various types of services: equipment repair, car service.

The state is taking certain steps to assist small entrepreneurs:

• funds are allocated to compensate for registration costs and start a business;
• free business training provided;
• preferential terms for renting office space;
• the possibility of preferential lending and non-repayable subsidies is provided.

Among the latest steps towards small businesses is the moratorium on inspections signed in July 2015 (the so-called supervisory holidays). active implementation on the official websites of the Federal Tax Service, the Pension Fund of the Russian Federation and the Social Insurance Fund, the Unified Portal of State Services of various online services, which are designed to simplify many permitting and registration procedures, the calculation and payment of mandatory taxes and fees, etc.

Problems of small business and entrepreneurs in Russia: Video

In June, presidential spokesman Dmitry Peskov said: “We have repeatedly said that there is nothing new here: in the sanctions exchange, the principle of reciprocity is the basis of our approach. Russia, naturally, considers these sanctions to be unfounded and illegal, and we have never been and are not the initiators of sanctions measures.” He added that the decision to impose sanctions against EU countries is justified by the interests of the Russian economy. On June 24, the head of the Ministry of Agriculture, Alexander Tkachev, called the extension of the response measures “a balm for the soul.”

Adaptation process

The extension of the sanctions was quite expected, as was the extension of the Russian “anti-sanctions”. A year ago, many believed that the country was not afraid of any sanctions. However, organizations, entrepreneurs and citizens still had to face certain difficulties.

At the end of 2014, banks, having lost the opportunity to lend in the West, were forced to raise interest rates on loans within the country. Business has had a hard time. However, in recent months the lending situation has begun to improve.

On a note

100 billion euros. The EU countries received so much less as a result of the exchange of sanctions, Kommersant reported with reference to the Austrian Institute for Economic Research WIFO.

“We must understand that in general we have a rather difficult situation in the economy - the situation on foreign markets remains completely unfavorable, markets are closed (if we talk about financial markets),” noted Russian Prime Minister Dmitry Medvedev on July 1 at a meeting with the Expert Council under the Government RF. “Commodity markets are also limited in both directions - the sanctions regime continues to operate, and the regime of retaliatory measures is also in effect, which was introduced by presidential decree and government decision,” the head of the Cabinet said.

According to some officials, limiting imports should give impetus to the development of domestic production. But here, too, certain difficulties arose.

It turned out that the vast majority of equipment at manufacturing enterprises is imported, and in conditions of rising exchange rates (or rather, the fall of the ruble), its repair and maintenance become very expensive. So now there is a process of adapting Russian business to work in new conditions and sometimes, it is worth noting, it is very productive.

Governmental support

The state, in difficult conditions, is trying to alleviate the situation of businessmen. For example, we can take the bill banning scheduled inspections of small businesses for three years. As stated in the explanatory note, this measure will contribute to the development of entrepreneurship. Other steps are being taken to develop SMEs. Thus, Russian President Vladimir Putin signed Federal Law No. 156-FZ of June 29, 2015 “On amendments to certain legislative acts of the Russian Federation on the development of small and medium-sized businesses in the Russian Federation.” And it is very gratifying that the authorities understood the need to support business in difficult economic conditions.

Now it is important to create conditions in the country that allow citizens to have their own business and develop small businesses. The most important thing is that this will not require colossal cash injections, nor the preparation of ingenious and expensive programs; it will be enough to weaken the tax and administrative pressure. And it’s good that the authorities understood this. Entrepreneurs can be advised only one thing - to work, trying to save their business, clients, jobs for employees, optimize costs, increase productivity, in a word, use all available opportunities to become better. After all, according to officials, now is the time for this.

It is worth noting that on June 29, Canada also imposed sanctions against Russia. According to the Ministry of Foreign Affairs of this country, the decision to expand sanctions was made due to the fact that the Canadian government “is of the opinion that the actions of the Russian Federation seriously violate international order and security; these actions have led or are likely to lead to a serious international crisis.” Officials immediately responded to this news and proposed to take retaliatory measures. So the “war” of sanctions continues.

About 40% of small and medium-sized entrepreneurs (SMEs) in 2016 noted the negative impact of Western sanctions on their business. B O the majority (48%) did not experience any negative consequences from anti-Russian measures. The impact of sanctions was felt most strongly by medium-sized businesses, which are more integrated into the global economy than small businesses. However, in the current situation, only every 10th entrepreneur plans to apply for government support, the rest rely on their own strength. The Analytical Center NAFI received such data during a survey of SME managers (Izvestia was the first to familiarize itself with the results of the study). Experts, meanwhile, note that sanctions have not only a negative, but also a positive effect.

40% of small and medium-sized businesses noted that over the past year they felt the impact of Western sanctions on their business. This opinion is more characteristic of managers of medium-sized businesses (50%). Almost half of Russian entrepreneurs noted that sanctions had no impact on their business (48%), this position was mainly expressed by the heads of small organizations (54% versus 42% of medium-sized ones).

16% of entrepreneurs predict profit growth this year. B O the majority hopes to maintain results at the level of 2015 (39%) or expects to receive less money from business (27%). Every 10th company does not expect any profit by the end of the year (11%), and the smaller the organization, the more often entrepreneurs predict this scenario (12% of micro-companies versus 7% of medium-sized ones).

Of course, business in general and SMEs in particular were largely affected by the general economic situation caused by the decline in oil prices. Raw materials began to fall sharply in price at the end of 2014. However, measures against Russia also played a role. Thus, according to the Central Bank, which is reflected in the “Main Directions of Monetary Policy for 2016–2018”, sanctions are one of the factors
hindering economic growth. The negative contribution of anti-Russian measures may reach -0.6%, the regulator believes.

However, according to the president of the all-Russian public organization “Support of Russia” Alexander Kalinin, measures against Russia should be considered not only as a negative, but also as a positive for SMEs.

Yes, sanctions had a negative impact on SMEs, since the United States and the European Union tried to cut off Russia from financial markets, which affected the ruble exchange rate and the cost of loans, explained the head of Opora.

In Russia, the rates for both attraction and placement are higher than abroad, which has actually led to an increase in the price of loans. In December 2014, the Central Bank sharply increased the key rate by 6.5 percentage points. - up to 17%. And borrowed funds have become inaccessible to most, including large, enterprises.

As the head of the Central Bank, Elvira Nabiullina, stated then, the regulator was forced to take this measure due to increased inflation and devaluation expectations associated with the weakening of the ruble. The depreciation of our currency is primarily influenced by external factors - lower oil prices and restrictions of our banks on lending abroad, explained the head of the Central Bank.

In addition, Alexander Kalinin explained to Izvestia why medium-sized companies felt the greater impact of sanctions.

Our country is deeply integrated into the international economy - in particular, companies, especially medium-sized ones, purchase a lot of components and licensed developments abroad. Of course, the depreciation of the ruble hit their business. In addition, rising prices have led to a contraction in demand, says Alexander Kalinin.

At the same time, he notes the positive impact of sanctions. As the head of Opora is sure, anti-Russian measures have awakened in people the desire to produce within the country.

It’s just that now domestic producers need preferences, which, in fact, is what the government is doing at the moment,” said Alexander Kalinin.

However, only a few (9%) small and medium-sized entrepreneurs in a difficult economic situation said that they planned to apply for a guarantee
regional guarantee organization, SME Bank or SME Corporation. To date, only 1% of companies have taken advantage of such support. Three-quarters of organizations (75%) have no plans to resort to government support, and these are mainly micro-enterprises (80%).

In the context of the increasing influence of sanctions, the question of the effectiveness of state support measures is especially acute. But ignorance of the capabilities of such programs and targeting a limited circle of users lead to the fact that they are not yet in demand, said Olga Stasevich, head of corporate research at the NAFI Analytical Center.

Managing Director of the National Rating Agency Pavel Samiev shares the same opinion. According to him, small businesses are poorly informed about financing opportunities in the state support system.

According to recent studies, about 40% of SMEs are unaware of support measures. On the other hand, about half (48%) of respondents consider the cost of attracting external financing to be too high, said Pavel Samiev.

The president of Opora also sees the reason that loans are still too expensive for SMEs. According to him, SMEs are accustomed to making do on their own and only receive support if they implement investment projects. In addition, as Alexander Kalinin believes, the situation will soon change, since from the beginning of October the “6.5%” loan program has extended to loans from 10 million rubles (previously - 50 million rubles). And this, according to the expert, will significantly expand the circle of users of this support measure.