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What Inhibits Small Business in Russia?

Date: Thursday, July 27 @ 16:52:57 MST
Topic: Russia

Why do so few people become small businessmen? What troubles does small business face in Russia?

According to 28% of respondents, the first problem is the lack of start-up capital, and another 2% spoke about difficulties in obtaining credit: "there are no real interest-free loans"; "it is not easy to obtain credit and build yourself up".

Some people (21%) blamed bureaucracy, bribe-taking among officials, poor laws and other troubles: "arbitrary rules, bribe-taking", "contradictory laws", "greedy policemen", “official control by the tax bodies".

According to 20%, poor state policy and limitations in the tax system interfere with the development of small business.

Ten percent of those surveyed said "bandits", "racketeering", and the indifference of the authorities are inhibiting small business development.

Five percent mentioned economic problems: pressure from big business, competition, high prices for rent and utilities, and low retail prices that limit profits.

Some respondents (14%) think that only subjective factors hinder small business: a fear of risk, poor awareness of the specific points of a particular business, lack of skills, or simply laziness.

Source: The Public Opinion Foundation

Information from:eLigne Russian Commercial Agency

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