How To Get Support For Small Business Development

How To Get Support For Small Business Development
How To Get Support For Small Business Development

Video: How To Get Support For Small Business Development

Video: How To Get Support For Small Business Development
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The state policy of supporting small and medium-sized businesses today is aimed at increasing the number of addressees. In other words, the state is committed to developing entrepreneurship and providing support. Support mechanisms do not provide for tax breaks or other financial preferences, however, even at the same time, they can have a positive effect on the financial stability of the enterprise.

How to get support for small business development
How to get support for small business development

Mechanisms for supporting small and medium-sized businesses are established at the regional and municipal levels. Thus, an entrepreneur anywhere in Russia can use two platforms to get support. However, in the current legislation there is a strict prohibition on the simultaneous use of funds from the regional and municipal budgets for one economic entity according to the same mechanism. In other words, taking advantage of the subsidy to cover part of the lease payment at the regional level, an entrepreneur cannot apply to cover the same contract with the city administration.

The regions were given the opportunity to independently choose the nature and scope of support mechanisms, but nevertheless, the nature of the frequently encountered areas of assistance can be distinguished. One of the most popular mechanisms is financial support for small businesses, provided upon starting a business. Most often, the recipients of this mechanism are persons who have used the program of municipal and regional employment services. As practice shows, this mechanism is more popular in rural areas and monotowns, where the interest of potential entrepreneurs in starting their own business is quite high.

In some regions, already operating organizations that have been on the market for the first year can also apply for support under this mechanism.

The second most popular mechanism is reimbursement of part of the costs allocated by the enterprise for exhibition and fair activities. This means of supporting their own business is often used by companies actively involved in marketing promotion.

The third mechanism, which can be found in almost any region of the country, is compensation for part of the costs of labor protection. The target segment of the market for this means of support is construction and manufacturing enterprises, whose costs at this level of expenditure reach very impressive volumes.

There is also a whole group of non-financial support mechanisms for small businesses. This includes the provision of rights to rent or buy out municipal or regional property, educational mechanisms in the form of free seminars and courses, etc.

At the same time, it should be noted that support mechanisms are not provided to everyone. To receive assistance from the state, it is necessary to pass a competitive selection. For this, the departments responsible for the provision of services form a list of documents that must be provided by the applicant. Often, applications from companies with tax arrears, negative financial results and unfavorable reputation are not considered. This is done to ensure that only promising market participants who can further become the basis for the formation of a sustainable business climate receive state support.

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