How to get support for small business development

The state policy of supporting small and medium-sized businesses today is aimed at increasing the number of recipients. In other words, the state is committed to developing entrepreneurship and providing support. Support mechanisms do not provide for tax breaks or other financial preferences, however, and at the same time they can positively affect the financial stability of the enterprise.

Support mechanisms for small and medium-sized businesses are established at the regional and municipal levels. Thus, an entrepreneur anywhere in Russia can use two platforms to receive support. However, in the current legislation there is a strict prohibition on the simultaneous use of funds from the regional and municipal budgets to one business entity by the same mechanism. In other words, using the subsidy to cover part of the lease payment at the oblast level, an entrepreneur cannot submit an application for covering the same contract with the city administration.

Regions were given the opportunity to independently choose the nature and scope of support mechanisms, but nevertheless, the nature of frequently encountered areas of assistance can be distinguished. One of the most popular mechanisms is financial support for small enterprises provided upon the opening of a business. Most often, the recipients of this mechanism are persons who have taken advantage of the program of municipal and regional employment services. As practice shows, this mechanism is more popular in rural areas and single-industry towns, where the interest of potential entrepreneurs in starting their own business is quite high.

In some regions, organizations that already have been on the market for the first year may apply for support through this mechanism.

The second most popular mechanism is the compensation of part of the costs directed by the enterprise to exhibition and fair activities. This means of supporting their own business is often used by companies actively engaged in marketing promotion.

The third mechanism that can be found in almost any region of the country is the compensation of part of the cost of labor protection. The target market segment of this support tool is construction and manufacturing enterprises, whose costs for this degree of expenditure reach very impressive volumes.

There is also a whole group of non-financial small business support mechanisms. This includes the provision of rights to rent or buy out municipal or regional property, educational mechanisms in the form of free seminars and courses, etc.

At the same time, it should be noted that support mechanisms are not provided to everyone. To receive assistance from the state will have to go through a competitive selection. To do this, the departments responsible for the provision of services form a list of documents that the applicant must provide. Often, applications from companies with tax arrears, negative financial results and an unfavorable reputation are not considered. This is done so that only promising market participants receive the support of the state, capable of further becoming the basis for the formation of a sustainable business climate.