Members deliberated on local business ventures within the Discussion Club "KP".
Small and Medium Enterprises in Kuban Discussed by Local Stakeholders
A discussion on the flourishing small and medium-sized business sector in Kuban, Russia, was held at the "KP" Discussion Club Meeting. Participants, including economists, commercial real estate developers, and representatives of various organizations, analyzed the current state and future prospects of entrepreneurship in the region.
The Creative Force of Society
Dr. Alexander Polidi, an economics professor and a distinguished economist of Kuban, opened the meeting by highlighting the pivotal role entrepreneurs play in shaping the social and economic landscape. He emphasized that entrepreneurs are the primary sources of job creation, investment, and overall economic vitality.
The number of small and medium businesses in Kuban has surpassed 300,000, with 650,000 self-employed individuals. In the past five years, the number of people employed in the sector has more than doubled, reaching over 1.3 million. Accounting for 47% of the total workforce in the region, small and medium enterprises (SMEs) are a significant pillar of the Kuban economy.
Support Programs for SMEs
Igor Slavinsky, chairman of the financial market committee of the Krasnodar regional branch of the RSPSP, shed light on the various support measures available for SMEs in Kuban. He noted that the region boasts developed and continually refined programs, providing assistance through direct subsidies, indirect support, and partnerships with banks.
Last year, some challenges emerged, such as delays and bureaucratic hurdles, but most development entities were still successful in claiming subsidies. Sectors prioritized for support include manufacturing, resort services, agriculture, and construction.
Balanced Neighborhood Development
Alexander Golikov, head of the commercial real estate department at GK DOGMA, presented the company's approach to comprehensive territorial development. By focusing on building homes that cater to residents' lifestyle preferences, DOGMA aims to offer future residents all necessary goods and services within walking distance.
In residential complexes like "Samolyot" and DOGMA PARK, commercial spaces account for 5% to 30% of the total area, depending on the size of the complex and the presence of sports and recreation facilities. The company also ensures a balanced mix of retail outlets to avoid saturating certain areas and negatively impacting tenants' economic indicators.
Developing Small Towns
President of GK "Lendex" Denis Braginchchenko discussed how developers create a commercial environment, not just in large cities but also in small towns. According to Braginchchenko, it is crucial to approach territory development projects in an integrated manner, considering not only housing, schools, and kindergartens but also shops, cafes, and other essential amenities.
Current projects in the Krasnodar region include "Dzenpark" in Mariyanskaya and "EVO" in Novokubansk, both of which will offer commercial spaces, recreational zones, and educational and medical facilities. The company works closely with small and medium-sized businesses to create a convenient and comfortable environment for residents.
Constant Work and Competition
A representative of the Krasnodar Regional Branch of "OPORA RUSSIA," Alina Malinina, stressed the importance of motivation and competition in small business development. She pointed out that only 5% of small business owners will grow and scale their businesses, highlighting the importance of establishing a solid system and being ready for continuous work and involvement in the process.
Malinina also acknowledged that financial incentives are typically the primary motivation for entrepreneurs, but as businesses grow, other motivations like leaving a legacy and contributing to society emerge. She also emphasized the role of competition in fostering innovation and differentiation among entrepreneurs.
In a broader context, successful support programs for SMEs can contribute to job creation, economic diversification, and innovation, ultimately enhancing regional competitiveness. In Kuban's case, agro-industrial development programs could be particularly beneficial due to the region's strong agricultural sector.
Entrepreneurship plays a crucial role in driving the economic growth of Kuban, with small and medium businesses accounting for 47% of the region's workforce and catering to residents' needs in various ways. To further support these businesses, the region offers a range of programs, including direct subsidies, indirect support, and bank partnerships, which have contributed to the sector's expansion in the past few years.
Successful entrepreneurship in Kuban is often characterized by constant work, competition, and the ability to adapt, as it provides financial incentives, job opportunities, and contributes to regional economic development and innovation.
