Russia to encourage its SME sector

Over 80% of Russia's Export earnings comes from the selling of its natural resources. Russia is now looking to encourage its Small Medium Enterprise's (SME) sector to help balance its economy for the future and the Russia government seek to support and invest in the SME sector to encourage growth.

Only 20% of Russian business would consider SME's and for Russia's future growth this sector has a lot of improvement especially when you consider in a country like the UK 90% of its Business are SME's. Investment Support and Innovation are important areas for the Russian government to concentrate its efforts to ensure the SME sector in Russia can flourish. Cutting  bureaucracy will certainly be a way to encourage Enterprise within the SME sector.
Help for the SME sector is also coming from outside Russia. The European Bank for Redevelopment (EBRD) headquartered in London is making a considerable investment into Russia's SME sector. BricPartner states that when people talk about the EBRD they tend to think that it only invests  in large infrastructural projects or only in Large companies which is true to a certain point, but a lot of the EBRD focus is now on the SME sector and particularly so in Russia.

Overall Investment in the Russian economy remains strong even with Capital flight increasing this year in Russia. Investment in Russian companies is not just coming from overseas investors but as demonstrated on the Moscow stock exchange Micex Russians are investing in Russian companies as well. With the global economy still unstable and with the Eurozone still in crisis Russian and its SME sector is considered a good place to invest for investors from overseas and from within Russia itself.

Russian president, Dmitry Medvedev stated, We chose as our themes this year the “Four I’s”  as being key to the country’s development: Investment; Innovation; Infrastructure and Institutions.

The SME sector is the life blood of any developed economy and Russia needs to be encouraged and give every opportunity to grow in the modern Russia. Russia certainly lacks behind its Bric Partners of Brazil, India, China and South Africa in terms of the amount of companies classed as SME's. China has the most SME's in compassion to the other Bric countries and its Bric Partners, with over 55% of China's GDP is generated via its SME sector.

BricPartner states for Russia to match its fellow Bric Partners it will need to  Cut  bureaucracy, support and invest . The Russian government has recognize the importance of this sector and will pass specific legislation to streamline bureaucracy and create a more positive environment to lenders servicing SMEs, through loan guarantee programs.