SMBs Contribute More to Moscow's Economy
In the first half of 2019, local SMBs generated 254.7 billion rubles for the city's budget, representing a year-on-year increase of 15.7%. According to the Moscow Department of Finance, in the first six months of this year the city has received a total of 1,253.4 billion rubles in revenues.
The share of small and medium-sized companies in the city's economy continues to expand. In 2014, together with private entrepreneurs they contributed with less than 17% to the city's budget. Today, their combined share stands at 22.7%.
Out of 254.7 billion rubles provided by SMBs, the largest share (26.8%) comes from wholesale and retail organizations. The second largest category is represented by construction companies (22.5%), followed by consumer service providers (8.2%) and manufacturers (7.7%)
The share of revenues allocated through the simplified taxation scheme is on the rise. They grew 20.8% year-on-year to reach 58.4 billion rubles.
“Moscow has a dedicated SMB support system that includes various programs and mechanisms. Among them are special tax treatments – the simplified and patent-based taxation systems, tax breaks for first-time entrepreneurs, partial reimbursements of loan interest costs, reduced lease rates, and more. As a result, the city generates more revenues from small and medium-sized companies than from large ones. This fact indicates that small and medium-sized businesses in Moscow have the opportunity to expand, increase output, and create new jobs,” says Elena Zyabbarova, head of the Moscow Department of Finance.
To support local business, the city has introduced the Small Business of Moscow project, thanks to which entrepreneurs can attend various workshops and events, and receive free consultations in one of 15 business services centers throughout the city. Consultations are also available by phone and online at mbm.ru.
5 august 2019