Youth and rural entrepreneurship in Leningrad Region.

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 personsRural - 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 decisionsAs a result – most of ideas becomes non-

realised 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 small-scale 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

ChangesTechnoparks 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 long-term 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 "de-motivate" 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-parkiSupport:• 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»