Youth and rural entrepreneurship
in Leningrad Region
Population
• 1 million 714 thousand 403 persons (as of
January, 1st, 2011).
• Increase
on 3% from 2008
Town - 1130 thousand persons
Rural - 583 thousand persons
• Square--8390,8 thousand hectares
• Square for agriculture - 1704,7 thousand
hectares
• http://small.lenobl.ru/
Substances of small busines in
Russia
• Small business in Russia – young
phenomenon
• The economy of Russia is focused
basically, on large manufactures and a
mining industry
• In Russia there is so-called «a natural
level» businessmen – 5-6 % of population.
• the level of development of small business
low enough – on 100 000 population is
necessary 6 small enterprises.
• In St.-Petersburg – 20 – 25 small
enterprises.
• In Leningrad region – 12-14
In Leningrad region
• In total amount of the enterprises a small
business share – 29 %
Quantity working in small business – 10 %
from able-to-work population.
Decrease in interest to business from youth.
The reasons:
- Change of priorities of the state support. The
main attention of the state – the fuel resources,
providing the basic incomes.
- The high status of civil servants and employees
of the state companies
- Frequent changes of "game rules"
- High entrance barriers to opening, tax loading,
threats of "an administrative rent»
- Domination in the markets of large network
corporations.
On polls among youth
– 21 % wants to become to work in "Gazprom",
- 15 % want to be the official,
- 14 % want to work in police or Office of Public
Prosecutor,
- 6 % of youth wants to have the business only
• Conclusion: the young man aspires to become
either the worker "Gazprom", or the official.
The complexities connected with "mental
world" of the potential young
businessman:
- Absence of self-motivation
- Absence of knowledge and abilities in
decision-making and business dealing
- Inability to develop and embody idea
- Unwillingness to bear responsibility for the
made decisions
As a result – most of ideas becomes nonrealised and do not reach even a «start –
up» stage
Conditionally inhabitants can be divided
into groups:
• Focused on St.-Petersburg companies
(suburbs’ population)
• Focused on native district activity (rural
population)
• Focused on large "city-forming" industries
(town’s population)
Structure of the enterprises of smallscale business in the Leningrad area:
• 40 % - trade, car repairs, repair of subjects
of private use
• 15 % - processing manufactures
• 12 % - operations with real estate
• 11 % - building
• 10 % - transport and communication
• 6 % - agriculture
Changes
Technoparks develop. They are opened almost in all
areas of the Leningrad area. Total amount of the
enterprises opened in technoparks – more than 500
from 2009.
– In St.-Petersburg there are business clubs – public
organisations for support of youth business.
– They help young businessmen to pass a way from
much employee to the investor. As an example –
business club "Grand".
– Annually forum of youth initiatives "Ladoga“ passes in
Leningrad District . At a forum social and enterprise
projects are discussed.
As example
• Programm «Development and the state support
of small and average business in Leningrad
region for 2009-2013» was provided by the longterm program granting to beginning
businessmen. for inhabitants of Leningrad
region.
The sum of a grant can reach 300 000 roubles
• The grant is given as indemnification of the
money resources already enclosed in the
organisation of the business, but no more than
80 % of the carried out expenses.
CREATION OF NEW ORGANIZATIONS OF BUSINESS SUPPORT IN MUNICIPALITIES
•
•
•
•
•
•
АНУ «ШКОЛА БИЗНЕСА» ВОЛОСОВСКИЙ
МУНИЦИПАЛЬНЫЙ РАЙОН
ФОНД ПОДДЕРЖКИ МАЛОГО И СРЕДНЕГО
ПРЕДПРИНИМАТЕЛЬСТВА МО «Г.
ВСЕВОЛОЖСК»
ФОНД ПОДДЕРЖКИ МАЛОГО И СРЕДНЕГО
ПРЕДПРИНИМАТЕЛЬСТВА МО
ВСЕВОЛОЖСКИЙ МУНИЦИПАЛЬНЫЙ
РАЙОН» ЛО «СОЦИАЛЬНО-ДЕЛОВОЙ
ЦЕНТР»
ФОНД МАЛОГО И СРЕДНЕГО
ПРЕДПРИНИМАТЕЛЬСТВА «ДОВЕРИЕ» (Г.
СВЕТОГОРСК)
МАНО «ЦЕНТР СОДЕЙСТВИЯ РАЗВИТИЮ
МАЛОГО И СРЕДНЕГО
ПРЕДПРИНИМАТЕЛЬСТВА» (КИРИШСКИЙ
МУНИЦИПАЛЬНЫЙ РАЙОН)
ЛОДЕЙНОПОЛЬСКИЙ ФОНД ПОДДЕРЖКИ
ПРЕДПРИНИМАТЕЛЬСТВА И
СЕЛЬХОЗТОВАРОПРОИЗВОДИТЕЛЕЙ
«СОДЕЙСТВИЕ»
Difficulties
- Orientation to legal and tax aspects of
companies’ activity
Consequence - It does not motivate, and "demotivate" many people that try to take a decision
to open own business.
- The problem of an estimation of result of
work. For example, criterion is the quantity of
seminars for the future businessmen, instead of
quantity of the open enterprises after action.
In Russia rural business can be
divided into three categories
conditionally:
•country (datcha),
• industrial
•farmer
• Country business assumes manufacture
of agricultural products and services
basically for personal consumption and is
concentrated in housing estates.
• The basic part of country sites belongs to
inhabitants of St.-Petersburg.
• The small part of made production gets on
the market.
• The industrial agriculture production
develops quickly because it has a support
of large financial and industrial groups.
But, nevertheless, the basic production is
animal industries production, and the most
part of vegetative production is imported
Farmer business develops, but not very quickly. The
reasons are the following:
- Reduction of agricultural population from decreasing of
quality of life;
- Absence of knowledge on economy and management of
agricultural business;
- Problems of the taxation and the legislation on the
property;
- Absence of interest from the state structures;
- Weakness of an infrastructure of support of farming.
Volumes of output of production of farmers small in the
absence of the modern technic.
• From the point of view of a sustainable development the
most interesting category is farms. They should be a
basis for life improvement of quality in countryside. [1]
But, according to many experts opinion, the basic
problem for intensive development of a farm as business
kind is the inability to create and develop competitive
idea.
Directions for development
farmers’ business
• Cultivation of garden berries:
raspberries, currants, strawberries by
a principle of the Finnish farms. In
Leningrad region such kind of activity
as picking of wood berries is popular.
And garden berries are imported from
other regions or imported abroad.
Directions for development
farmers’ business
• Agrotourism . In Leningrad region the quantity of the
farmer houses capable to accept tourists is limited to
100. It is obviously not enough of it for a city with the
population of 5 million persons. Among inhabitants of St.Petersburg while this kind of tourism is not popular. It s
difficult to find the information about such houses.
Absence of popularity of agrotourism is also in its narrow
specialisation. Farmers are ready to give placing,
participation in life of a farm, walks. But citizens want to
ski, on bicycles, to fish, take part in holidays and events.
Other obstacle for development of rural tourism is not
developed transport and tourist infrastructure: bad roads,
absence of ski and bicycle trails
Conclusions.
• In our opinion the basic problem – to choose
competitive idea, to develop and arrange its
realisation. For this purpose it is necessary to
create an effective network on learning of
businessmen and an exchange of experience on
start of projects. This knowledge should help to
businessmen to learn to select resources within
the municipality and do not wait for the investor
from outside.
• Also experience of young businessmen from the
frontier countries on start of new projects would
be useful.
Documents and references
• About the concept of a sustainable development of rural territories of
Leningrad region for the period till 2020 (2011)
• The sub-programme 5. "Development of small, average business
and the consumer market of Leningrad region" Government program
of Leningrad region «Stimulation of economic activity of Leningrad
region»
• http://lenoblinvest.ru/ru/investploschadki/industrialnie-parki
Support:
• The committee on development of small, average business and the
consumer market of Leningrad region
• Leningrad regional centre of support of business
• Guarantee fund of Open Society «Agency of credit maintenance»