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Business barriers are eliminated by the whole system

Primorye authorities continue to remove administrative barriers for entrepreneurs, which has already positively affected the positions of the subject of the Russian Federation in the national rating of the investment climate.

Business barriers are eliminated by the whole system
Photo: Ovchinnikova Irina /
Since 2013, the region has been trying to simplify the life of business in a variety of ways - from creating an investment agency to financial and non-financial support. Experts emphasize that work on eliminating barriers must be systematic, and for the businesses that are created, institutions and ratings indicators that are created are not so important as a concrete result.

Today Primorye is the region-leader of the Far East in terms of entrepreneurship development: one third of all small and medium-sized enterprises in the Far Eastern Federal District operate in the region, their total turnover is about 40% of the federal district. Small and medium business of Primorsky Krai is more than 91 thousand subjects, including almost 53 thousand individual entrepreneurs. The contribution of small and medium enterprises to the economy of Primorye is about 30% of the volume of GRP.

Small and medium-sized businesses are particularly sensitive to administrative pressure, so reducing its level is a priority task to improve the investment climate. In the annual national rating of investment climate, compiled according to the survey of entrepreneurs, Primorye improved its performance in the group "Administrative pressure on business." In this direction, the number of documents requested from one enterprise per year is estimated.

The result has been improved thanks to a number of measures taken by the regional authorities, explains Sergey Pavlenko, director of the department of economics and entrepreneurship development in the Primorsky Krai: Also at one of the meetings of the staffing office, the governor of Primorye, Vladimir Miklushevsky, supported the initiative of the business ombudsman to review systemic appeals of businessmen on administrative pressure directly at meetings with the participation of all concerned. ”

But business problems are not exhausted by this. Sergey Kachaev, Deputy Minister for Development of the Far East, notes that the three most pressing issues for entrepreneurs now are “the quality of organizational, infrastructure and information support for small businesses, the quality and availability of financial support, and the quality and availability of infrastructure”. The Ministry of Development and Development proposes regions to concentrate their efforts precisely in these areas. The presidential plenipotentiary in the Far Eastern Federal District, Deputy Prime Minister Yury Trutnev instructed the authorities of the Far East to create all the conditions in order to raise their positions in the national investment climate rating to at least the 41 place.

In Primorye, in the spring of 2016, priorities for improving the investment climate have been identified, for which detailed action plans have been developed - road maps. Seven "road maps" will allow, authorities hope, to do business in the territory of the subject easier. Most of the indicators when they reach will allow the region to enter the top two rating groups - A and B. Key to the development of small and medium-sized businesses is the work on the road map "Entrepreneurship and investment" - it includes 28 indicators.

First, it should become easier to register enterprises in Primorye. In 2015, the region in the national ranking according to the indicators of the average time of registration of legal entities, the average number of procedures and the degree of satisfaction with the activities of state registration has already entered the AB groups. This year, the region improved the quality of the multifunctional centers and conducted business information to improve performance.

The second direction of the work on the road map is the already mentioned decrease in administrative pressure on business: a reduction in the number of documents requested additionally, the number of inspections and, in general, the share of companies that faced pressure from government bodies or subjects of natural monopolies. Two procedures are closely related to business security: Regulatory Impact Assessment (ODS), which allows active entrepreneurs to participate in the development of regulations and securing the rights of entrepreneurs to be supported at the legislative level. Primorsky Krai already has a law on state support for investment activities that protects investors' rights, and more and more draft regulatory acts are undergoing the ODS procedure.
Business interests should be protected by special institutions of power - the regional council for improving the investment climate and an organization to attract investors. Both in the region function successfully: in 2013, the Council for attracting investments in the economy of Primorsky Krai under the governor and ANO Primorsky Krai Investment Agency was created - one window for investors. The business also has the opportunity to directly contact the head of the region through the Internet receptionist or leave an appeal on the investment portal. Another part of the "road map" is devoted to improving the work of all these mechanisms, also evaluated within the framework of the national investment climate rating.

In addition, it is important for entrepreneurs to obtain financial preferences. They are provided in Primorye in several forms: from tax privileges established for the whole country for patent holders to the unique for the Far East exemption from payment of several types of taxes for residents of the Free Port of Vladivostok and territories of advanced development. Small businesses are also provided with subsidies for reimbursement of several types of costs, for example, leasing payments, state guarantees from the regional guarantee fund, and only registered individual entrepreneurs - "tax holidays". Availability of credit resources is another indicator, estimated by national rating. Non-financial types of business support are provided by business incubators established in Primorye on the basis of leading universities - the Far Eastern Federal University and the Vladivostok State University of Economics and Service, private technology parks, information portals and the MFC. According to the indicator "Efficiency of non-financial support of small business", municipal lists of property have been formed, which entrepreneurs can use.

Thus, summarizes the director of the Department of Economics and Business Development Primorsky Territory Sergei Pavlenko, work to improve the investment climate is conducted on a systematic basis. "Much attention is paid to interaction with authorities at all levels, federal corporations to develop business, reduce the tax burden and remove administrative barriers, develop an infrastructure for supporting entrepreneurship," he emphasizes.

The real figures of the number of recipients of regional level preferences speak eloquently about the level of business support in Primorye. For example, in the first nine months of the year, only the regional guarantee fund provided a guarantee to 78 small and medium-sized enterprises for bank loans. According to the reporting of the fund, guarantees for 409 million rubles allowed enterprises to attract loans for the development of their projects for 803 million rubles. Since the beginning of the fund’s operations, he has issued 873 guarantees for 2,58 billion rubles, for which the business has been credited for 5,8 billion rubles.

Financial support from the Primorye administration helped, for example, the young company VladInvest to open three new outlets at once - a coffee shop, a snack bar and a healthy food cafe - on the territory of the VSUES. Entrepreneurs recognize that without a guarantee they could not get a loan for business development, and the fund considered the application and took a positive decision on it in just three days. And only thanks to state guarantees in the seaside capital there appeared the brand store of the TERRANOVA clothing brand chain, and the company implementing this project under the franchise used the support from the state twice, and for the last time in 2016 - to obtain a loan for the purchase of new premises.
Meanwhile, financial guarantees as a measure of support are in demand not only by companies at the startup stage, but also by enterprises that have been operating in the market for a long time. For example, VSK TekhnoStroy, founded in 2007, engaged in construction and installation work throughout the Primorsky Territory, benefited from the support of the region's Guarantee Fund to ensure ongoing uninterrupted operations. “In the construction industry, there is a time gap between the purchase of materials and the settlement of customers for contracts for work performed, and therefore the construction company needs additional funds. With the support of the Fund "VSK TekhnoStroy" received additional funding to fulfill a portfolio of orders ", - explained in the company.

Olga Kurilova, the head of the Agency for Strategic Initiatives office in the Far Eastern Federal District, agrees that, according to the results of the national rating of the 2016 investment climate, “there is a dynamic in a number of indicators in all regions of the Far Eastern District, and Primorsky Krai is not an exception. But rating is not an end in itself and “just a tool: it allows you to see objective feedback in each region on a number of indicators that concern business, and make timely management decisions,” says Ms. Kurilova. Entrepreneurs face certain barriers and problems on a daily basis; therefore, their removal requires constant work at all levels of government, the ASI representative said.

All regional teams need to develop previously launched mechanisms and institutions for business and strive to bring their work to a qualitative indicator, Olga Kurilova emphasizes, because the result is important for business. “For example, if this is an investment climate council, then it is important what instructions are issued on the basis of the results of the council, how these issues are resolved. If an investment agency - how well the principle of “one window” works, how much investment has the agency attracted to the region, ”explains the expert. An important feedback tool in the work on improving the investment climate in the regions, in her opinion, should be the method of “test purchases” of the project team together with business associations, and this should be done on an ongoing basis.

"While business records that it continues to receive a building permit in the regions of the Far Eastern Federal District, it is long and opaque, some entrepreneurs have their own competitive advantages, the connection to the power grid is both long and expensive, and everyone is concerned about control and supervisory activities, quality and Number of unscheduled inspections. I think that the regulatory environment, institutions for business and administrative pressure - this is something that needs to focus on the efforts of regional project teams in the DFO next year or two, "- says Olga Kurilova.

EastRussia Help
The national investment climate rating evaluates the efforts of regional authorities to create a favorable business environment and identifies best practices, and its results stimulate competition for investment at the regional level. Tatarstan, Belgorod and Kaluga regions again became the traditional leaders of the rating in 2016. Primorye, like a year earlier, took a place in the middle of the rating - 58th line. At the same time, the region showed a positive trend in improving a number of indicators at once. Thus, the average time for registration of legal entities has decreased - from 10,8 to 9,6 days, for connection to power grids - from 113 to 93 days. The number of procedures for registering property rights - from 5,6 to 3 steps.
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