Small business in Russia: state and perspectives

Abstract

The paper is based on abstracts of presentations to the international conference: "Deep transformations in the countries of Eastern Europe; the role of small business" (Freiburg, Sacsonia, Germany, 9-11 of September, 1993).The main stages of small business development in Russia are described, beginning with issue of the Union law "On Cooperation" (1986). The authors outline four basic organizational and legal schemes of rise of small non-state enterprises, and conventionally four basic "waves" of business connected with social origin, social and cultural peculiarities and activity spheres; "cooperators", industrialists, manufacturers and financiers of number of middle link state officials; merchants that have been managers of state commerce in past, "raznochintzi" who are busy in small production including domestic craft, services and innovations.Namely this last wave of "democratic", rising from "below" small business generates the hopes of authors for creation of mighty social base for reforms, capable to provide the strong social consensus for realization of necessary and hurting institutional and structural reformsIt should be remarked that in contradiction to current prejudice on population's hostile attitude to private business, the data of surveys of RNISiNP and other centres of social monitoring show, that Russians as a whole have the positive attitude for engagement in small business (connected for to-day with availability of non-occupied niches in economy as well as with exaggeration of own capabilities). Real obstacles and gaps on a path of small business development are conditioned by other circumstances.The short characteristic of main barriers on a path of civilized business is given including:-   lack of free money resources, problems of fixed and circulating capital generated to a great extent by financial stabilization policy;-   failure of the former system of division of labor and chaotic state of the forming system;-   lack or underdevelopment of information, consulting and marketing infrastructure,-   predominance of criminal and shady business;-   deficit of personnel with business ethics;-   demagogical making advances to small business from the side of legislative as well as executive authorities of federal level and ignoring of small business interests in fact.The especial attention is paid to the last crisis, fuss and quick changes round the state structures called to provide development of small and middle business are shown in details. The peripetia of Foundation for Support of Business and Development of Competition as well as project of the law on state support of small business in 1992— 1993 are described, shown in details.Feeling skeptical for the nearest future of small business, the authors are forecasting turning of small business into real social-economical and political force when crisis structural changes will effectuate the broadening of rows of new independent proprietors, transforming them into powerful social force supported by trade-unions also.