| Russian small business does not need a legal entity Despite the “guardianship” of the federal authorities and local controllers from various government bodies, Russian small business not only survived, but also grew. In an effort to bypass the notorious administrative barriers, entrepreneurs appreciated the advantages of such a form of organizing their business as PBOYUL (enterprises without organizing a legal entity). TACIS project manager for supporting small businesses in Russia Nick van der Lein, presenting yesterday a 370-page review of Russian small businesses, said: of more than 5.6 million small businesses, almost 4.5 million are enterprises without a legal entity. At the same time, as Nadezhda Kallina, head of the small business development department at MAP, says, positive dynamics have been evident for the last two years, while back in 1999 there was a tendency towards a reduction in enterprises. Noting that in terms of the number of small enterprises, Russia has almost caught up with developed countries - 37 enterprises per 1,000 people (in Europe this figure ranges from 40 to 60 per 1,000 people), she believes that entrepreneurs have not yet realized themselves as a political force and resemble “an overgrown teenager -accelerate".
But statistics are deceiving. State Duma deputy Ivan Grachev, in a conversation with a correspondent of the Vremya Novostey newspaper, noted: “Having exceptional tax advantages by law, PBOYUL began to be organized by entrepreneurs whose business had grown to the size of a medium-sized one (according to the law, an enterprise is considered medium-sized if it employs at least 250 people. - - Ed. ). They make their employees individual entrepreneurs, which is beneficial for reducing the tax base.”
The presentation of TACIS coincided with another event, no less important for domestic entrepreneurs: two days ago, the State Duma adopted the chapter of the Tax Code on taxation of small businesses in three readings at once. The government project has been adopted. Mr. Grachev characterizes him briefly: “Harmful.” If it is finally adopted in the fall, he believes, “only 10% of businessmen, those who have connections in local administrations, will be able to get out of the situation.”
In just over two years (from May 2000 to August 2002) the European Community will spend 2.1 million euros to pay for consultants and analysts hired to implement the program “Support for the development of small businesses in Russia” - almost the most expensive within the framework of the technical assistance project for the CIS countries (Technical Assistance Comonwelth of Independent State or TACIS). The Europeans chose the Dutch Institute of Economics (Ecorys - research and consulting) as the general contractor, and the beneficiary of the program (the one for whom the funds are spent) is the Ministry of Antimonopoly Policy of the Russian Federation (MAP). Several years ago, one of the leaders of MAP admits, almost all EU allocations for small businesses in Russia ended up in the form of payments for services in the same European countries. According to Nick van der Lein, “65% of the funds this time were spent in the Russian Federation.” Vladislav DOLGOV |
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