The expert named priority measures to support manufacturing SMEs

It is advisable to focus the key focus of support for productive small and medium-sized entrepreneurs (SMEs) on reducing the administrative burden and simplifying financial mechanisms. Dmitry Morkovkin, Associate Professor of the Department of Taxes and Tax Administration at the Financial University under the Government of the Russian Federation, told Izvestia about this.

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According to the expert, the key focus should be on reducing the administrative burden and simplifying financial mechanisms. Among the measures are the development of digital tools for flexible transition between organizational and legal forms and tax regimes, expansion of access to debt financing at reduced rates (up to 10%), as well as additional adjustment of existing benefits, including simplification of conditions for the application of a reduced insurance premium rate (7.6%) for manufacturing industries.

"Removing excessive barriers will allow entrepreneurs to reallocate resources from bureaucratic procedures to production development: launching new lines, upgrading facilities and hiring employees. This is especially important in the context of deepening import substitution — the niches vacated after the departure of foreign brands in various segments, from light industry to the component base, can be quickly occupied by manufacturing SMEs," he said.

In addition, cost reduction and access to concessional financing can, according to him, restrain price increases in certain competitive segments and ensure a more sustainable pace of industry development.

Read more in the Izvestia article:

Momentum for development: small and medium-sized businesses will have easier working conditions