Russia: "SME+" is mentioned in a draft law
  • 2024-02-01
  • Entrepreneurship Research Center on G20 Economies
  • Edit
  • The Russian Ministry of Economic Development is preparing an important draft bill aimed at further supporting the development of small and medium-sized enterprises (SMEs) and introducing a completely new classification - "SME+" - which will be specifically designed for the enterprises that go beyond the traditional threshold of SMEs and will also be able to benefit from a number of fiscal incentives for SMEs.

    According to the preliminary provisions of the draft, the criteria for an enterprise to be classified as "SME+" will be based on two key indicators. The first is the annual turnover threshold, which is set at RUB 10 billion for SMEs. This means that a company's annual turnover must be at or above this amount to be recognized as an SME+. This criterion is used to screen out companies that have scaled up to a certain size. The second is the number of employees, which the bill stipulates must not exceed 1,500, and the number of employees must be within this limit for a business to be classified as SME+, which also prevents larger companies from taking away concessions for SMEs.

    The bill aims to provide SMEs with a wide range of financial supporting measures, including preferential loans and umbrella guarantees, which will help to improve the financing capacity and liquidity, helping them to stand out in a competitive market. In addition, the bill will provide specific support for priority sectors, including high-tech industries, IT, manufacturing and tourism, where SMEs are often highly efficient and innovative and are the main drivers of economic development. By supporting SMEs in these sectors, the Russian government aims to further strengthen the country's economy by promoting import substitution and breakthrough technologies.

    The SME+ thresholds and the transition of the tax regime are still under discussion. The Ministry of Finance and relevant ministries will be involved in the development of specific policy measures to ensure that SMEs are able to reduce their operating costs and burdens.

    According to Nonna Ghahramanyan, Vice-President and Chairman of the Executive Committee of the Russian Union of Industrialists and Entrepreneurs, the existing system of support for SMEs lacks incentives for the growth of entrepreneurial businesses. And in this aspect, this bill does just that by providing support measures targeted at SME+ enterprises.

  • Partners

  • Global Health Innovation Center (GHIC)
  • World Intelligent Incubation Network (WIIN)
  • National University of Singapore
  • Canada-China Institute For Business & Development
  • TusPark Research Institute for Innovation
  • Cross-strait Tsinghua Research Institute
  • Tsinghua X-Lab

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