Your own businessman

The Russian authorities have decided to fight unemployment by throwing money at the workers who remain out of work – so to speak, “starting capital”. Is it realistic for a simple unemployed person to open his own business with this money?

The Russian authorities have decided to fight unemployment by giving some money to the workers who remain out of work—“start-up capital,” so to speak. Is it realistic for a simple unemployed person to open his own business with this money?

How much do they give?

Deputy Prime Minister Alexander Zhukov spoke about new ways to recruit potential entrepreneurs at the end of May. It was then that it became known that the White House decided to entice the remaining out-of-work Russians into small businesses. That is, in fact, they have been trying to get them interested in this since last year, but the amount of state support has so far been quite modest and has not caused mass enthusiasm among the growing army of unemployed.

Unemployment benefits for 12 months in advance could be received back in January, but the size of the subsidy depended on the amount of the benefit itself, and it could be minimal. And if the benefit was assigned at 850 rubles, then the subsidy, accordingly, barely exceeded 10 thousand. Now the calculation is made from the maximum benefit amount (4,900 rubles), which means that the size of the subsidy has grown to 58,800. This help, however, is one-time, but free of charge.

To “maintain your pants” the funds are quite decent, but, according to experienced businessmen, starting a small business with them, much less making a fortune, is problematic.
“This money is not enough even to bribe a minor official to get permission, say, to open a kiosk,” admitted the founder of the capital’s Stargrad company, Boris Petrosyan.

How to get

Not only are the funds allocated for starting a business meager, but it is also almost impossible to obtain them.

In the employment center of the Southern Administrative District of Moscow, for example, in order to get money, you must first of all charm the in-house psychologist, who must discern the makings of a Rockefeller in the unemployed. In the few minutes of communication allotted for this by bureaucratic regulations, not everyone succeeds in making the proper impression.

But that's not so bad. Those who have passed the initial selection will receive a “feasibility study for entrepreneurial activity,” or, more simply put, a business plan. It must contain detailed information about the future commercial premises, necessary equipment, suppliers of raw materials and production facilities. And be sure to indicate “pricing and marketing strategy.” In general, to do something that not every apparatchik in the White House can do.

Such paperwork requires not only an additional round of mental convolutions, but also time. It will take officials another 10 days to three months to review the business plan. And then you will also have to write reports on the intended use of the rubles received, otherwise they will be forced to return them. In general, free cheese, it turns out, doesn’t only come in a mousetrap.

What to spend it on

In practice, it turns out that they don’t give money for selling rags at a flea market - it’s too primitive. Creating Internet portals is also too difficult. You can’t get them for private transportation either - the state needs something more social, preferably with the creation of new jobs.

Among the favorites among officials are shoe repair, tailoring, and furniture making. Particular attention in times of crisis goes to people from the plow. Using government subsidies, 37-year-old Evgeniy Rykanin from Yaroslavl has already built a greenhouse and is now growing vegetables:

– I used to work at a watch factory, but we were laid off. Now my production is completely different. I am engaged in agriculture.
Selling fruits, raising bees, fattening bulls - everything that is guaranteed to bring financial returns and does not require additional bribes is met with a bang in employment centers. More serious business plans, which may in the future run into extortion from officials, have difficulty getting through.

“That is, as an alternative, this is not bad, but it is clear that this is not enough to give a start to real small businesses and thus provide people with self-employment,” says Elena Kiseleva, an employee of the Institute for Comprehensive Strategic Studies.