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Development of small business

Energy of Opportunities Forum took place in St.Petersburg

Leningrad business forum Energy of Opportunities took place on 24-25 September in convention and exhibition centre Expoforum. The leading experts, representatives of federal ministries, rectors of leading universities and businessmen discussed influence of new trends on development of small and medium-sized business during numerous seminars, round tables, panel discussions, brainstorms.

“Over four years the forum has managed to grow from a regional event to a large inter-regional congress where small, medium-sized business, community and authorities successfully find common ground, develop new ideas, discuss trends. As we see from experience, small business has the fastest reaction on new challenges, quickly adopts to new demands of society which means that it grows faster,” noted the Governor of Leningrad region Alexander Drozdenko in his address to the participants of the Forum.

Deputy Chairman of the Government of Leningrad Region – Chairman of the Committee for Economic Development and Investment Activity Dmitry Yalov participated in a plenary session “Urban environment and entrepreneurship: trends and opportunities”. In his welcoming speech he told that technologies not only of the fourth, but also of the third industrial revolution are a real challenge for Leningrad region.

“New technologies influence employment already. Someone says that technological revolution is yet to come, but a girl who used to work in a dispatch taxi and whose workplace has been substituted by Yandex and Uber would not agree with you,” noted Dmitry Yalov.

He said that industrial capacities which have been created over the last years can be several times more frugal to human labour than facilities created in the early 2000s.

“Now we launch enterprises with investments amounting to tens of billions of rubles and 200-300 employees. This is really a key challenge. We need to be prepared to it right now and not to keep for later,” added Dmitry Yalov.

Director of Economic Development Agency of Leningrad Region Andrey Sergeev also participated in the Forum, in a session “Mechanisms of support for small and midsize business. The best business practices”. The head of the Agency told the participants about measures of support provided in Leningrad region, including those in the territory of advanced social and economic development established in the beginning of this year in Pikalevo.

The residents of the territory of advanced development receive tax benefits: the regional part of corporate income tax is 5% within the first five years and 10% within the following five years. The federal part of corporate tax is 0% within the first five years.

Besides, corporate income tax within the first five years is 0%, the following five years – 1.1%, land value tax – 0% within ten years.

Investment projects should meet several requirements: the minimum volume of capital investments of a resident of the territory of advanced development needs to come to 2.5 million rubles, the minimum number of new permanent jobs – 10 and the number of foreign employees should not exceed 25% of the total volume of the number of employees.

Along with tax benefits, the residents of the territory of advanced development have additional preferences concerning infrastructure and investments: construction of power, heat, gas supply facilities is possible using finances of Monotowns Development Fund. Finances of the Fund can also be attracted to investment projects.

More information about the territory of advanced social and economic development Pikalevo can be found here

 

Reference

More than 64,000 small and midsize enterprises and 41,000 individual entrepreneurs operate in Leningrad region. According to a forecast, turnover of this sphere in the region will come to 625 billion rubles in 2018, investments in production and development – 46 billion rubles. Almost 30% of population is employed in small business.  

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Economic Development Agency of Leningrad Region

 

Address: 64 B Malookhtinsky avenue, office 402, Saint Petersburg, 195112, Russia

Phone: + 7 (812) 644 01 23

Fax: +7 (812) 644 01 23 (ext. 2042)

invest@lenreg.ru 

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