The Official Karelia
  Русская версияEnglish versionSuomalainen versio
  |About Karelia |Symbols   |Tourism |  Cooperation |

Social and Economic Development of the Republic of Karelia in 2010

  Modernization of the Economy

    Investment
    and Construction


    Small And Medium
    Enterprises


    Industrial Policy

    Agroindustrial Complex

    Services

    Natural Resources
    and Ecology


  Cooperation

  Public
  Administration


State Support and Development of Small and Medium-Size Enterprises

Development of small and medium entrepreneurship are priority spheres of implementation of social and economic policy of the Government of the Republic of Karelia.

In 2010 implementation of the regional program of Development of small and medium business in the Republic of Karelia for the period through 2014 continued. The purpose of the program is creation of conditions of intensive growth of small and medium business in the Republic of Karelia for increase in total of operating small and medium-sized business entities, support of employment and development of self-employment of the population, support of competitiveness of small and medium business, increase in the share of goods, works and services produced by small and medium enterprises in total regional product. In 2010 changes were made to the Program which promotes rendering the state support to small and medium-sized business entities, producing export goods, as well as subsidizing of innovative companies.

Budgetary assignments of 12,5 million roubles were allocated for implementation of the program from the budget of the Republic of Karelia in 2010.

Due to participation of the Government of the Republic of Karelia in the competitions held by the Ministry of Economic Development of the Russian Federation on selection of subjects of the Russian Federation which budgets in 2010 were to receive grants to support activities carried out within the scope of rendering the state support to small and medium-sized business entities are given it has been in addition involved 30 million roubles.

The state support of small and medium business was carried out in the following spheres:

1. Support of organization administering activity of Business-incubator of the Republic of Karelia; Development of business-incubation processes; subsidizing of a part of expenses per 1 square meter of the area the Business-incubator, rendered to small business entities.

In 2010 the following spheres developed:

  • perfection of business-incubation processes through rendering services concerning consultation of small business entities and granting them other services;
  • the third regional conference Small and Medium Enterprises of the Republic of Karelia (on November, 25th, 2010) was organized and held. Its purpose was development of small and medium business within the territory of the Republic of Karelia, exchange of experience, rendering practical assistance to businessmen. More than 290 people have taken part in work of the conference. Within the framework of the conference there have been organized a mini-exhibition, work of consulting tables and seminars;
  • support of activity of the regional branch of the European Information Correspondent Center.

Functions on the organization of allocation of nonresidential premises and services in the Business-incubator of the Republic of Karelia for small business entities since July, 2010 were delegated for outsourcing to the organization operating activity of the Business-incubator of the Republic of Karelia. Selection of small business entities for accommodation in Business-incubator is carried out on a competitive basis. By results of the competition 9 applicants were selected. In 2010 in Business-incubator on favourable terms there have been placed 31 small business entities with 101 of employees.

2. Granting of partial reimbursment to small and medium-sized business entities to compensate expenses on repayment of interest on credits received for implementation of investment projects.

In 2010 Agreements of granting of partial reimbursment to compensate expenses on repayment of interest on investment credits were concluded with 25 small and medium-sized business entities from Petrozavodsk and Kostomuksha city districts, Medvezhiegorsk, Segezha, Kondopoga and Prionezhsky municipal regions. This support was rendered in the following spheres of activity: services rendered to the population (a fitness center, photoservices, passenger transportations); tourism (hotels); fish-breeding (trout-breeding); production of furniture; automobile service; production of fire robots.

3. Support of organizations forming the infrastructure for support of small and medium business in the Republic of Karelia in the form of scientific, methodological, information, educational and consulting support of entrepreneurs that are getting started or already running their business.

Within the framework of impltmentation of the activity of the Program Karelian Regional Institute of Management, Economy and Law of Petrozavodsk State University attached to the Government to the Republic of Karelia State educational Institution has held a complex of educational programs concerning launching and and doing business. Training was held for 222 participants from 9 municipal formations of the Republic of Karelia.

To hold a complex of educational programs there have been developed and published tutorials Doing Business. Small and Medium-Sized Business Entities. Information and Reference Guide for Beginners.

4. Development and increase of efficiency of using modern electronic information and communication technologies in the sphere of small and medium business.

Within the framework of impltmentation of the activity the State Educational Institution of Higher Professional Education Petrozavodsk State University has held a complex of programs to improve professional skills for small and medium-sized business entities of the Republic of Karelia in the field of using advanced information and communication technologies for development and promotion of business. The complex of educational programs included three programs: technologies of computer graphics and multimedia for small and medium business; information and communication technologies for small and medium business; information technologies in project management of small enterprises. Representatives of 55 small and medium-sized business entities from 4 cities and 9 settlements of the Republic of Karelia have taken part in these educational programs, having studied a complete academic course and received PetrSU's certificates of improvement of their professional skills.

5. Issuing grants to beginning small business entities to let them start their own business.

On results of selection of investment projects a decision was made to issue 300,000 roubles of grants to 34 competitors for establishing their own business and issuing 500,000 roubles of grants to 5 competitors for establishing of their small innovative companies. Total amount of grants has made 11,520,000 roubles.

6. Issuing grants to the operating innovative companies.

In 2010 decisions were made to issue grants to 3 applicants with whom grant agreements were concluded and financed.

7. Support of the Internet-resource WEB Portal for the SMEs of the Republic of Karelia

The Government of the Republic of Karelia supports the WEB Portal for the SMEs of the Republic of Karelia at www.msb.karelia.ru. The site contains federal and republican regulatory framework concerning small business, articles, interview, information about Business-incubator of the Republic of Karelia, the Guarantee fund, information on events, seminars and the state support tenders for small business entities.

In 2010 the site was visired by more than 44,000 users from Petrozavodsk, Moscow, St.Petersburg, Ufa, Penza, Irkutsk, Ekaterinburg, Sochi, Novosibirsk, Murmansk, other cities of Russia and 8 foreign countries (the USA, Ukraine, Finland, Kazakhstan, Germany, Belarus, England, Moldova).

8. Support of small and medium-sized business entities, producing and (or) selling goods (works, services) intended for export. In 2010 work on the organization of participation of export-oriented small and medium-sized business entities of the Republic of Karelia in the Eurobois 2011 exhibition (Lyons, France), February 15-18, 2011 was held.

9. Issuing guarantees by the Guarantee Fund on obligations of small and medium-sized business entities and organization of the infrastructure.

To form the authorized capital of the Fund it has been allocated 117,9 million roubles, including 30 million roubles of the funds of the budget of the Republic of Karelia and 87,9 million roubles of the funds of the federal budget received on results of the competition held by the Ministry of Economic Development of the Russian Federation the within the framework of activities focused on support of small business.

Guarantees to small and medium enterprises are provided for credits issued by commercial banks that have cooperation agreements concluded with the Guarantee Fund. As of January 1, 2011 cooperation agreements have been concluded with 10 banks.

In 2010 the Fund concludes 57 guarantee agreements amounting to 100 million roubles. The amount of credits issues according to these guarantees makes 211,1 million roubles.

10. Development and commissioning of the information system The Register Beneficiary Small and Medium-Sized Business Entities of the Republic of Karelia.

In 2010 representatives of executive bodies, institutions of local government of the republic were taught to use the information system.

Entry of data into the Register is carried out by experts of bodies of the government and local self-government in the working order according to the current legislation. As of January 1, 2011 the Register contains 1971 records.

11. By the Order of the Government of the Republic of Karelia 304-P as of December 17, 2010 Concerning amendments to the Order of the Government of the Republic of Karelia 29-P as of February 21, 2009 a new activity of Issuing grants to budgets of municipal formations to finance municipal programs of development of small and medium-sized business entities, including in the monoprofile territorial formations defined by regulations of the Government of the Russian Federation and co-financed from the federal budget was included in the Program.

Within the framework of implementation of this activity it is planned to issue grants on a competitive basis for implementation of activities of municipal programs of development of small and medium-sized business entities.

In 2010 the Government of the Republic of Karelia paid special attention to issues of creation of workplaces in the sphere of small business through rendering support to unemployed citizens willing to start their own business. This support was rendered within the scope of implementation of the Regional program of support of employment in the Republic of Karelia in 2010. Financial expenses for organization of assistance to self-employment in 2010 has totalled 104,5 million roubles, including 96,8 million roublesn from the federal budget, 7,6 million roubles from the budget of the Republic of Karelia. Within the framework of the Regional program it has been concluded 1462 agreements of issuing grants to start their own business and 185 agreements of issuing grants to unemployed citizens that have started their own business to let them create additional workplaces to provide occupation for unemployed citizens.

In 2010 state services to assist self-employment (consulting, methodological help, assistance in business-planning) were rendered to 3563 unemployed citizens (1219 people in 2009). As individual businessmen who have started their own business in 2010 it has been registered 1525 people (417 people in 2009).

In the field of agriculture in 2010 the basic spheres of the state support of small business were granting of partial reimbursment to compensate expenses on repayment of interest on investment or short-term credits equal to the official bank rate of the Bank of Russia; issuing of grants for support of animal breeding.

Total amount of support in 2010 has made 6,5 million roubles, including 3,2 million roubles of grants for partial reimbursment of expenses on repayment of interest oncredits, and 3,3 million roubles to support animal breeding.

Technical support
Created: May 20, 2010. Last updated: May 27, 2010.
© State Committee of the RK for ICT Development, 1998-2015