The main constraints for the development of small businesses in the Far East are the personnel issue, finances, and interaction with regulatory agencies, said Andrey Shubin, executive director of Opora Rossii, in an interview with Made in Russia on the margins of the Eastern Economic Forum.

In 2017, Opora Rossii conducted a study, which showed that the constraints to business development in the Far Eastern Federal District include insufficient funding and high taxation.

"Added to that is the problem of human resources. Firstly, the outflow of the population, and secondly, poaching to large corporations. Small businesses always have a problem, because all the highly qualified personnel choose high salaries. This is a federal trend which has been going on for 5 years already," Mr. Shubin said.

He called another "pain" of the region a problem with finances. "Now the rate is going up. Here, the implementation of concessional financing programs, interest rate subsidies, and the work of guarantee funds are of particular importance," he said.

Among the key problems of Primorye, he said, are customs crossings, as cars stand in wait for a long time. This is due, among other things, to the lack of an electronic queuing system.

"Businesses have problems with regulatory authorities, because there is no dialogue with customs, but there are many problems. I would include anything related to cross-border trade, exports and imports among the sensitive issues," Shubin said.

Also, he said, to date, there is no clarity as to what impact the new legislation will have in the forestry sector. "It is unclear how it will affect because of the new excessive requirements. The lack of roads is also a problem in terms of timber removal," concluded a representative of Opora Rossii.

The Eastern Economic Forum was held in Vladivostok from the second to the fourth of September. The main theme of this year's event was "New Opportunities for the Far East in a Changing World". The forum was organised by the Roscongress Foundation.

Read the full interview at madeinrussia.ru at 14.00.

Made in Russia // Made in Russia

Author: Ksenia Gustova