1.5. Conducting business in realities of Russian economy

There are currently about 5.5 million small and medium-sized businesses in Russia and their share in GDP is 24%. There are important resources in Russia, they are even in excess, but there is no credit available for businesses less than 13%, and this is the main problem that hampers economic development. However, conducting business in Russia is associated with many problems, which can be solved by combined efforts of government, business and banks [⁴]. 

The business community of small business in Russia and various heterogeneous entrepreneurs require different support. The total program of support for small business covers no more than 1-2% of the entrepreneurs; the remaining 98% are left alone with their problems. [⁵] Among them there are all sorts of problems: the legal practice in taxation, finance and credit. At the federal level authorities often claim the priority and importance of small business and the need for their full handed support. On January 1, 2008 the Federal Law of July 24, 2007 № 209-Federal Law "About the development of small and medium enterprises in the Russian Federation" came into force which, apparently, significantly improved the position of private entrepreneurs[⁶]. 

However, the law does not provide one of the important components of small businesses - special loans with preferential terms. It becomes obvious that in order to achieve a certain number of small businesses (typical for countries with developed and emerging economies), it requires the establishment of a clear and well-functioning structure of government support.

As we can see, small business today is no small virtue. However, the effectiveness and the role of it is inferior to small businesses in other countries.  However, throughout the world have long found a way to significantly increase. World experience shows that small business is operating successfully in the clusters.

In one of the first clusters attention M.Porter American economist, who defined them as follows: "A cluster - a group of geographically neighboring interconnected companies and associated organizations operating in a particular area and characterized by common activities and complementary to each other." The scientist discovered that the most competitive on an international scale the same industry firms usually do not haphazardly scattered in various developed countries, and tend to concentrate in the same country, and sometimes even in the same region of the country. For a cluster characterized by the concentration of the most efficient, interconnected groups of successfully competing firms, which are grown "diamond" of national economic system and provide a competitive position in the industry, national and international market. It is natural that the clustering of small business is encouraged everywhere. So, if Russia contributes to the development of clusters for small businesses – everybody wins.

Currently, small businesses have good prospects, and, moreover, there are a number of factors that facilitate the entry barriers in the business right now. In particular, these include reduced rates for rental of office, industrial and retail space, a huge supply of labor and the vacated niche for new businesses as a result of competition.