Small business in Russia enjoys special, intended only for him, benefits. The state is trying to reduce the tax and administrative burden of small businesses, receiving in return an increase in employment and a decrease in social tension. What does the definition of “small business entities” mean and who belongs to them in 2019?
A small business entity is a Russian commercial organization or an individual entrepreneur who is aimed at making a profit. Also included in this category are:
- peasant (farm) farms;
- production and agricultural cooperatives;
- business partnerships.
A non-profit organization, as well as a unitary municipal or state institution, is not a small business entity.
Who belongs to SMEs
The criteria for classifying small businesses in 2019 are established by the state. The main requirements, subject to which it is possible to classify a businessman as a small and medium-sized business (SME), relate to the number of employees and the amount of income received. Who is the SME, i.e. refers to small businesses, defines the law of July 24, 2007 N 209-FZ in article 4. Let's consider these criteria, taking into account innovations.
Thanks to the amendments made to Law No. 209-FZ, a greater number of enterprises and individual entrepreneurs can be classified as small businesses.
- The maximum allowable amount of annual revenue without VAT for the previous year for micro-enterprises increased from 60 to 120 million rubles, and for small enterprises - from 400 to 800 million rubles.
- The permitted share of participation in the authorized capital of a small enterprise of other commercial organizations that are not subjects of small and medium-sized businesses has increased - from 25% to 49%.
But the allowable average number of employees has not changed: no more than 15 people for micro-enterprises and no more than 100 people for a small enterprise.
For individual entrepreneurs, the same criteria for dividing into business categories apply: by annual revenue and number of employees. If an individual entrepreneur has no employees, then his SME category is determined only by the amount of revenue. And all entrepreneurs working only on the patent system of taxation are classified as micro-enterprises.
The period during which a businessman continues to be considered an SME has been extended, even if he has exceeded the allowable limit on the number of employees or the revenue received. Until 2016 it was two years, and now it is three. For example, if the limit was exceeded in 2017, then the organization will lose the right to be considered small only in 2020.
What to do in a situation where the status of a small enterprise is lost due to the achievement of the previously existing limit of 400 million rubles, because it is lower than the current one? The Ministry of Economic Development believes that after the act of the Government of the Russian Federation dated July 13, 2015 No. 702 comes into force, such an enterprise can return the status of a small one if the annual revenue does not exceed 800 million rubles.
State Register of SMEs
Since mid-2016, the Unified Register of Small and Medium-Sized Businesses has been in operation. A list is posted on the portal of the Federal Tax Service, which includes all subjects of small and medium-sized businesses of the Russian Federation. Information about SMEs is entered into the register automatically, based on data from the Unified State Register of Legal Entities, EGRIP and tax reporting.
The following mandatory information is publicly available:
- the name of the legal entity or the full name of the individual entrepreneur;
- TIN of the taxpayer and his location (residence);
- the category to which small and medium-sized businesses (micro, small or medium enterprises) belong;
- information about activity codes according to OKVED;
- an indication of the presence of a license, if the type of activity of a businessman is licensed.
In addition, according to the application of a businessman belonging to small and medium-sized businesses, additional information can be entered in the register:
- about the manufactured products and their compliance with the criteria of innovative or high-tech;
- on the inclusion of an SME entity in partnership programs with government customers;
- on the existence of contracts concluded as a participant in public procurement;
- complete contact information.
To transfer this data to the Unified Register, you need to log in to the information transfer service using an enhanced qualified electronic signature.
After the formation of the official register, small businesses are no longer required to confirm with documents that they correspond to this status in order to participate in state support programs. Previously, this required the provision of annual accounting and tax reporting, a report on financial results, and information on the average number of employees.
You can check the information related to small and medium-sized businesses, and their reliability, by making a request for information on the TIN or name in the Register. If you find that there is no data about you or they are unreliable, then you must send a request to the Registry operator to verify the information.
What gives the status of a small business entity
As we have already said, the state creates special favorable conditions for entrepreneurial activity for micro and small businesses, pursuing the following financial and social goals:
- ensure a way out of the shadows and self-employment of persons providing services to the population, engaged in small-scale production, working as a freelance;
- create new jobs and reduce social tension in society through the growth of the population's well-being;
- reduce budget spending on unemployment benefits, health insurance and pensions for officially unemployed persons;
- develop new activities, especially in the field of innovative industries that do not require significant costs.
The easiest way to achieve these goals is to make the state registration procedure simple and quick, reduce administrative pressure on businesses, and reduce the tax burden. In addition, targeted financing in the form of non-repayable subsidies has a good effect on the activities of start-up entrepreneurs.
The main list of preferences for small businesses looks like this:
- tax incentives. Special taxation regimes (STS, UTII, ESHN, PSN) allow you to work at a reduced tax rate. Since 2016, regional authorities have the right to additionally reduce taxes on UTII (from 15% to 7.5%) and on the STS Income (from 6% to 1%). On the simplified tax system Income minus Expenses, the opportunity to reduce the rate from 15% to 5% has existed for more than a year. In addition, from 2015 to 2020, individual entrepreneurs, first registered after the entry into force of the regional law on, have the right not to pay tax at all under the PSN and STS regimes for two years.
- Financial perks. This is direct financial state support in the form of grants and gratuitous subsidies issued under the all-Russian program valid until 2020. Funding can be obtained to reimburse leasing costs; interest on loans and credits; to participate in congress and exhibition events; co-financing projects (up to 500 thousand rubles).
- administrative benefits. This refers to such concessions as simplified accounting and cash discipline, supervisory holidays (limiting the number and duration of inspections), the ability to draw up fixed-term employment contracts with employees. When participating in public procurement, there is a special quota for small businesses - at least 15% of the total annual volume of purchases by state and municipal institutions are required to be made from them. When obtaining loans, government guarantors act as guarantors for small businesses.
The development of big business weakens competition, promotes the development of monopoly, and stabilizes the level of prices in the industry. On the Russian market, big business is represented by private and state corporations, unitary enterprises in the field of energy, raw materials, and transport.
Varieties of big business
Profit growth in large business requires constant expansion of the enterprise: increasing production space, purchasing new equipment, hiring employees. The development of such companies is accompanied by government subsidies and abundant investments. Representatives of large businesses can be:- United enterprise. Production, trade, research facility with a common organizational structure. This type of large business is found in the extraction and processing of raw materials, often refers to the city-forming enterprises.
- Company. A group of several enterprises that make up a single legal entity managed by a group of owners or managers. This type of big business is typical for all industries, it allows owners to reduce costs by eliminating intermediaries from the supply chain.
- Company group. Several manufacturing, trading, research enterprises that operate independently and are united by common owners. This type of big business is typical for state corporations in Russia, international companies, and manufacturers of technically complex products.
The foreign economy is built around small businesses that freely compete with each other. Such companies produce a diverse range of products, create a price dispersion in the market, easy entry of new enterprises and a high level of competition. Large business in the foreign economy is more isolated from the state, closely cooperating with small companies.
Features of a large business
The number and dynamics of development of large enterprises depends on state regulation, the characteristics of the national economy, the political situation in the country and the world. The development of large business has a dual effect on the country's economy, therefore, it is carefully regulated by supervisory authorities. Large businesses are characterized by the following features:- Economies of scale in production. Large companies buy raw materials in bulk and sell goods through well-established distribution channels. This approach reduces the cost per unit of goods and steadily increases profits.
- Stable development of the economy. Big business constantly pays taxes, provides jobs, develops regions, invests profits in research and development of new product models. This approach stabilizes the market, allows you to invest in technology and personnel.
- Influence on the political situation in the country. Most large companies have international business ties and are interested in the state's stable position on the world stage. The heads of large companies have lobbies in power structures and promote economic and social policies that are beneficial to them.
- The concentration of economic activity around one enterprise. Large companies are classified as "full cycle" enterprises and operate in isolation from other market participants. This approach reduces the integration of companies, slows down the exchange of information between business, government and consumers.
- Standardization of business processes. Large businesses often have a rigid corporate culture and established rules for making deals. This approach creates bureaucratic structures that are slow to adapt to market changes.
Not everyone knows that small and medium-sized businesses are different concepts that lend themselves to a very specific definition. Most often, we use these words together, without making a distinction between one and the other. Meanwhile, the legal framework that you will use, for example, when calculating taxes, also depends on the scale of your business.
What is the difference
When, during registration, an entrepreneur needs to indicate the type of business in the questionnaire, he positions it, guided by certain criteria. There are quite specific parameters by which one can unequivocally separate the concept of small and medium-sized businesses:
- amount of workers;
- income from the sale of goods per year;
- independence from the state and foreign investors.
Small businesses include individual entrepreneurs, farms, as well as legal entities employing no more than one hundred people. The revenue or value of the assets of a small enterprise based on the results of the previous year should not exceed 400 million rubles.
For very small organizations, with a staff of up to 16 people and an annual revenue of no more than 60 million, the status of a micro-enterprise is provided.
Medium-sized enterprises employ from one hundred and one to two and a half hundred people, inclusive. Income from sales of goods or services - up to 1000 million rubles.
These figures are set by the Government and must be changed every five years.
For both forms of enterprise, the share of state or foreign participation should not exceed 49 percent.
Differences in law
Russian legislation provides small businesses with quite tangible benefits. These are simplified taxation systems, accounting procedures, submission of statistical reports.
Banks have their own business valuation criteria. This is important, as there are various targeted lending programs for small businesses. And representatives of medium-sized businesses are given loans using an individual approach.
So, now we know very specific numbers that will help determine whether your enterprise belongs to a small or medium business. Differences are enshrined in the Tax Code of the Russian Federation and in the law on accounting.
foreign standards
In other countries, the criteria for assessing enterprises are somewhat different from Russian ones. For example, in the UK, a small business can be classified as a company that the owner manages independently, without using hired managers, if decisions are made by him independently (the company is not part of a larger structure) and there is no external control over its activities. The company's market share is also estimated, it should be small.
There is also a significant difference in the upper limits of the values of such indicators as the number of employees and annual revenue. In Europe, small businesses include firms with 300 employees, while in the US this figure is 500. So it would be incorrect to compare the share of small businesses, for example, in the US and Russia, as well as the number of people employed in it.
From the point of view of economic processes, the concept of small and medium business has more similarities than differences. Yes, and these differences are very conditional. That is why we see these two words so often together.
Both small and medium-sized enterprises play an important role in creating new jobs, in the production of consumer goods, which means that they are equally important for the economy of our country.
Small and medium business in the new economic conditions: Video
Individual entrepreneurship and its basics - where to start your own business, is it possible to count on state support, what is the difference between small and medium-sized businesses, are there any features of doing it in Russia? What is lending to small and medium businesses, as well as a few business ideas from IQReview.
"Small and medium business" - this phrase has been on everyone's lips lately. Its development is important in any country - it contributes to the creation of jobs, stimulates healthy competition, equips the market with the necessary goods. What is it, and how do small and medium-sized businesses differ from each other?
Small business - this is an entrepreneurship based on the activities of small enterprises, firms that are not included in any associations. Their activities are regulated by the Federal Law on Small and Medium Enterprises, adopted on July 24, 2007. The legislation defines as an enterprise, the number of which is from 16 to 100 employees, the profit from its activities does not exceed 400 million rubles. Firms employing a maximum of 15 people are recognized as micro-enterprises, and their income should not exceed 60 million rubles.
Medium business already assumes that the number of employees will be more - from 101 to 250 people, and the annual revenue is about 100 million rubles.
Comparison of Russian small and medium business with foreign
If we compare the data of Russia, Europe and the USA, it will become obvious that the number of small enterprises in our country is much less than abroad. For example, in Europe, tax collections from small businesses replenish the state treasury by almost 50%.
Despite the positive dynamics of growth in the number of small enterprises in Russia, their performance still lags behind foreign ones. Here are the figures: in our country there are approximately 12 enterprises per thousand people, in European countries - from 37 to 70. The comparison in terms of the number of employees is also not in our favor - 22% versus 70%. As for GDP, the figures here are disappointing: 18% in Russia and almost 70% in the West.
The main difference between the development of domestic business and Western economically more developed countries is that it is mainly focused on the service sector, and the number of enterprises engaged in the processing industry or mining is negligible.
Many factors are responsible for such a significant difference between the number of small and medium-sized enterprises. The success of small and medium-sized businesses in the West is primarily due to state support - numerous programs that regulate taxation, concessional lending systems and other incentives stimulate the development of entrepreneurship.
Problems of small and medium business
Domestic business, despite the constant attempts of the state to help in its development, still faces a huge number of problems - first of all, this is the imperfection of the tax system, the interference of criminal structures that control income, pressure from the government.
The only way out of the situation can be the adoption of special loyalty programs by the government.
Lending to small and medium businesses
It is impossible to start your own business, start-up capital. And if "finances sing romances", the only option is to either find investors or take a bank loan to develop your business.
The easiest and most budgetary option is to ask for financial help from friends. If you are very lucky, then perhaps you will receive the required amount without collateral, checks and without interest. But if this is not possible, commercial financing remains.
Money to start a business
Another way is to turn to future “colleagues in the shop”, current big businessmen. Perhaps one of them will be interested in your well-written business plan. The only “BUT” is that your payment for such assistance will be a share in the enterprise, and quite a significant one at that.
Well, the last option is to register as an individual entrepreneur and cooperate with a bank that issues loans to medium and small businesses.
To date, many banks have programs to support individual entrepreneurship.
In Sberbank, for example, you can get all the necessary advice, and on a special portal of information resources for private entrepreneurs, which was created with the support of SME Corporation JSC, using a business navigator, calculate all expenses, draw up a business plan, find premises, and find out if you can count on state support.
Some types of entrepreneurial activity can count on receiving subsidies for the acquisition of fixed assets from the state in an amount not exceeding 500 thousand rubles. To do this, you will have to invest at least half of your own money, carry out state registration. The enterprise should not specialize in trade - neither wholesale nor retail.
Now in some regions of Russia, so-called business incubators are being financed. These programs provide a good chance to save money, for example, on rent, which is a good help - in large cities and in the capital, more than half of the company's revenue has to be paid for it. Upon receipt of such a state benefit, a novice entrepreneur will be able to save additional funds to repay the loan.
Planning and organization of medium and small businesses
Strategic planning of your business is one of the main functions of its management, which is a clear indication of the main goals of the organization and ways to achieve them. This is the basis that helps to make all management decisions, as it is a kind of "model of the future" of the company, determines the prospects for its development in a comprehensive competitive market.
Strategic planning is an important step in creating a business In our country, such a tactic of strategic planning for medium and small businesses is not yet very common, but market relations are developing, competition is intensifying, and this is increasingly adding to its relevance. The methods that were used before are already outdated and work very badly. This makes business owners nervous, complaining that bad management, force majeure situations, and a poor level of specialist training are to blame. But in fact, the problem most often lies in the fact that the entrepreneur simply does not see a strategy for the long-term development of his business in the near future, and even more so its long-term prospects. To do this, you need to calculate everything - the tactics of competitors, the needs and demand of the consumer, possible market changes.
Many completely unpredictable factors can affect the development of small and medium-sized businesses, and not attaching importance and due attention to them means knowingly driving yourself into a hopeless situation. Therefore, the key task is planning and developing tactics, a strategy of behavior in the market, taking into account all circumstances - both internal and external.
Forecasting in small and medium-sized businesses and its features
Unlike a large business, in which all plans and strategic developments are carried out by senior management, and the project team may consist of twenty to one hundred people, and their project documents number a hundred or two pages, in small and medium-sized enterprises, this phenomenon can rather be called an enterprise development program for a certain period of time. For the most part, such a plan is not even transferred to paper, and is solely the product of the imagination of a private entrepreneur and his personal opinion regarding the "survivability" of the business for the next couple of years. But even such a plan includes quite specific tasks related to a specific time period, based on analysis, understanding the market, a “feel” for one’s own business, studying its strengths and weaknesses, the ability to resist competitors, and determining the prospects in this industry.
Analytics helps to conduct a small audit of the current position of the company, to set key priorities for its activities. These priorities are presented as tasks - precise, coordinated among themselves, with clear deadlines for execution and with an indication of resources. The quality of the formulation of such tasks has a great influence on the success of their implementation, so simple and effective tools, for example, setting certain goals according to the SMART system, could be a good help for the business owner.
What is very important to remember at the initial stage of developing your business
The first thing you need to "hack on your nose" - you need to constantly monitor the execution of all tasks. Here, mistakes are not forgiven, because the slightest inaccuracy can ruin your business in the bud. A good solution would be to place control points at minimum intervals from each other. In fact, at the very beginning of the formation of a small and medium-sized business, its management is unitary - everything is controlled by the director of the company and his assistants, they make the necessary adjustments, and so on. But a good solution would be to turn to temporary, hired personnel for help - usually their qualifications are higher, which is a definite plus.
How to set goals correctly?
At the very beginning of the implementation phase, some entrepreneurs are faced with the fact that either the quality of performance is lame, or it does not exist at all. In 90% of cases, this is not even due to the qualifications or motivation of its performer, but to fuzzy and vague planning, when the goal is not clearly fixed, not tied to anything, not defined in time. Just for comparison: “our goal is to increase sales of products” and “our main goal is to increase sales by 30% by January 2018” with a clear definition of performers, resources, and so on. The latter option has a much higher chance of being executed, as it is more accurate and matches the success criteria outlined above.
The main theses of strategic planning
It is important for a business owner to understand that for its successful conduct, a simple mental representation of the development of events is not enough - they must be documented.
With these clearly defined tasks broken down into milestones, you can track the milestones of your company, successfully synchronize all your staff, eliminate possible misunderstandings, and minimize the risk of bottlenecks.
Stages of strategic planning The strategic plan helps to set the main guidelines in the development of the company, allows you to soberly and objectively evaluate its internal resources, development opportunities in the market. Of course, its presence cannot guarantee the absolute success of your enterprise, because no one is immune from mistakes, force majeure and other factors. But such a visualized planning of goals, their description, tracking allows you to create the most favorable conditions for expanding the influence of the company, its growth, internal efficient allocation of resources and strong strengthening in the market.
Ideas for small and medium businesses without large initial investments
First of all, you need to clearly define the location of your "gold mine" - you must admit that it is unlikely that the business of selling antique paintings and jewelry will be successful in the provinces. The most popular objects of small and medium-sized businesses among potential customers can be enterprises in the service sector and small trade. This area includes, for example, on-site computer diagnostics of cars, a cleaning company, a mini-bakery or a grocery store. A great solution would be to become the owner of a payment terminal that allows you to pay utility bills, fines, phone bills - you definitely can’t go wrong, because this is what people will always do.
Summarize. With two components - a strong desire and even a small initial capital - you can organize an excellent business plan that will open the gates to your future grandiose entrepreneurial activity!
Small and medium business in Russia: systems of crediting, guarantees and guarantees (video)
A form of entrepreneurship based on the activities of small commercial structures that are not legally included in a large association.
Small business forms a competitive environment that forces enterprises to develop dynamically and develop new market niches, thereby creating jobs. Due to the flexibility and ability to adapt to changing market conditions, small business ensures social stability and growth of the national economy.
Small Business Characteristics
Federal Law No. 88-FZ dated June 14, 1995, small businesses include consumer cooperatives, farms, commercial organizations, as well as individuals and legal entities included in the unified state register of individual entrepreneurs whose activities are aimed at systematically making a profit from the disposal of property, sales of products, performance of work or provision of services.- The number of employees. For retail trade and consumer services, the indicator is limited to 50 employees, for agriculture and the scientific and technical industry - 60. In other industries, it is allowed to increase the staff to 100 people.
- Status. The share of external funds of state entities, funds and subjects of the Russian Federation in the capital of the organization should not exceed 25%, 49% - from ordinary legal entities. The limit does not apply to investment funds and legal entities that themselves are representatives of small businesses, as well as shareholders of the high-tech sector of the economy; where the innovations developed by the founders are developed or implemented in practice.
- The amount of profit. The total annual income of the subject should not exceed 800 million rubles.
Types of small business
Depending on the category of sources of income, enterprises distinguish several types of small businesses:- Industrial. The economic activity of such structures is aimed at creating a commercial product, which is works, services, information or goods.
- Trade. Small businesses in this category specialize in the sale or exchange of products made in other sectors of the economy.
- Financial and credit. The category includes structures that make a profit as part of the purchase and sale of currency or securities.
- Intermediary. A type of activity in which the entrepreneur acts as a counterparty between the producer and the consumer of the product.
- Insurance. Small business involved in the indemnification system for the insured person.
Small business is the backbone of market relations. Small business occupies market niches that are not of interest to large enterprises, which creates opportunities for the development of regions with a weak economy. In this regard, support for small businesses is considered a priority for states aimed at stable GDP growth and improving the quality of life of citizens.
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