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Governor

Vologda Oblast Governor Oleg Kuvshinnikov took part in the RF Government meeting led by Prime Minister Dmitry Medvedev.

03.10.2013

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The meeting was devoted to support regarding social security contributions for small and medium-sized businesses.

Addressing the participants of the meeting, Mr. Kuvshinnikov said in part that small business in the Vologda Region plays an important role in the region’s economy stimulating economic growth and a stronger private sector.

Even in 2008-2009, when the world financial crisis struck, the authorities of the Vologda Oblast took measures to support small and medium-sized businesses in the region. The tax rate for Vologda’s small businesses in food and textile industries was lowered from 15% to 5% (it is as high as 8 % on average in Russia).

The measures implemented by the local government made it possible to keep the number of small enterprises and increase the share of people working in small and medium-sized businesses. Small and medium-sized businesses that function on the territory of the Vologda Oblast employ an estimated 174,000 people.

Sectoral distribution of small enterprises in Vologda is characteristic of Russia as a whole. Fields of action are trade, real estate operations and lease, construction, agriculture, and manufacturing. Small enterprises employ 31% of all people working in the economic sector of the oblast.

The Vologda Oblast Government renders assistance and a wide range of services to start-ups by creating business incubators encouraging and assisting entrepreneurship.

In 2012 a new project regarding support of small firms and enterprises was launched – a database designed to automate the procured goods in the Vologda Oblast. Orders of the leading Vologda’s enterprises are built and posted on the Internet. This database boosts import-substituting industrialization that replaces foreign imports with domestic production.

At the RF Government meeting in Moscow, Oleg Kuvshinnikov suggested a number of measures aiming to support small- and medium-sized businesses. He offered a variety of loan programs for a new start-up business, personal loans for business use for small business owners, granting of subsidies to the regions for their programmes of support for small and medium-sized businesses and others. Most measures put forward by Vologda Oblast Governor Oleg Kuvshinnikov were approved by the participants of the Government meeting today.

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