Business

Within the period beginning from 1991 — time when the small enterprises appeared — their rather specific trade structure developed. Mostly attractive is the sphere of trade and catering. Here the half of all small entrepreneurship subjects employ about 40% of all those working in small business. They provide 50% of the social turnover in retail trade and three quarters — in wholesale trade.

In construction almost 10 per cent of enterprises are grouped, and it accounts for 16% of involved in the sphere of small business. The volume of contract work runs as high as 33 per cent of the total regional figure.

In industry 11 per cent of enterprises function, where 20 per cent of the workers are employed. Their contribution to the overall volume of industrial production ranges up to about 16%. This sector basically produces the consumer goods: they produce 100% of the total regional volumes of hosiery, 90% — of furniture (sofas, armchairs, beds), 66% — of dresses, 54% — of mineral water and many other things.

In transportation about 5 million tons of cargoes and about 10 million passengers are carried. In Krasnodar Territory the share of these business subjects, dealing with the cargo transportation, exceeded 26% as a whole.

In agriculture the peasant (farmer) holdings run to 19 thousand producing 5% of agricultural gross output. In 2001 they grew 10.5% of grain, 5% — of sugar beet, 17% — of sunflower and 8% — of vegetables.

The developed sphere of entrepreneurship is specific for the structure of economic complex of Kuban. The small business accounts for 18 percent of the goods and services output in the region to exceed the average Russian figure by eight points.

Krasnodar Territory enjoys the activity of about 35 thousand enterprises, that are involved in small business. The average registered body of employed in small business is 260 thousand strong. In the region seven small enterprises fall on every 1000 persons of population. The volume of products (works, services) for all the kinds of this sphere exceeded 30 milliard rubles. The primary instruments to realize the state policy of the small entrepreneurship encouragement in Krasnodar Territory are the regional law «On the state support of the small entrepreneurship in Krasnodar Territory» and Decree of Krasnodar Territory Governor «On the development of small entrepreneurship in Krasnodar Territory».

The Program of the small entrepreneurship encouragement for 2003–2005 is designed to provide the conditions for intensive development of this economy sector. The program makes provision for formation of legal, tax and administrative environment mostly favorable for stirring up of small business. creation of the new working places and advance in living standard of persons involved in entrepreneurship, in other words of people at large. With this aim in view, the measures are intended as follows:

By the most important development parameters of this sphere Krasnodar Territory is one of the top twenty subjects of the Russian Federation and is a leader in the South Federal District.

improvement of normative and legal base, regulating entrepreneurship activity and its state support;
development of the credit and financial mechanisms and introduction of financial technologies, aimed at the development of the small business sector;
distribution of experience of using organizational, financial and other technologies intended to provide the conditions for development of small enterprises accrued in Krasnodar Territory, in other regions and abroad;
attraction of investments to economy of small entrepreneurship;
broadening section of subjects and persons seeking to carry on business;
training highly skilled personnel for this sphere;
development of small entrepreneurship in innovation and production spheres;
introduction of small enterprises products to the regional and interregional market;
extension of external economic activities of the small entrepreneurship subjects;
carrying out information and analytical monitoring of small business state in Kuban and working out measures for the state policy of entrepreneurship development on its basis;
creating conditions for realization of the foreign programs of entrepreneurship development in the region and stirring up international cooperation in the field of its encouragement;
protection of labor and social protectability in the sphere of small business;
ecological security of small manufactures.

The position of the regional administration consists in creation of the mostly favorable climate for development of small business. The efficient proprietors are provided with assistance to overcome administrative barriers, the procedures of coordination and registration are normalized, and the tax and financial preferences are granted.

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