In remarks attributed to Boris Titov, the Commissioner for the Protection of Entrepreneurs’ Rights under the President of the Russian Federation, it was stated that the current composition of small and medium-sized enterprises (SMEs) in Russia does not align with the level of economic development the country seeks. Titov emphasized that a radical shift in the SME mix toward production is urgently needed and described this realignment as the primary economic challenge facing Russia today.
He pointed out that a significant portion of domestic SMEs remains rooted in wholesale and retail trade rather than production. Specifically, about 37% of SMEs operate outside the production sector, while the share engaged in actual manufacturing is limited to 5–6% of the number of establishments and around 10% of total turnover.
Titov argued that restoring momentum to inflation fight hinges on boosting domestic production and launching new enterprises. In his view, recentering SME activity toward production would help stabilize prices and strengthen the broader economy.
SMEs play a central role in Russia’s economic narrative, contributing a meaningful slice of GDP. Government support measures have been introduced to bolster these enterprises, including targeted financing programs. One notable example is an emphasis on umbrella financing, with major banks participating to set higher benchmarks for lending to SMEs. Beyond this, discussions continue about additional initiatives lenders can pursue to back small and medium-sized businesses.
Earlier in 2023, SMEs benefited from preferential investment loans totaling more than 90 billion rubles, illustrating ongoing public-private collaboration aimed at expanding productive capacity and entrepreneurship. The conversation around SME development remains a key driver of economic policy and business strategy for the region. Source: socialbites.ca.