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MIL OSI Translation. Region: Russian Federation –

Source: Ministry of Economic Development (Russia) – An important disclaimer is at the bottom of this article.

A joint study by the Ministry of Economic Development, Sber and the Public Opinion Foundation within the framework of the project “Entrepreneurs of Russia: Research Monitoring” showed the attitude of Russians to entrepreneurship.

“The year 2024 has become the Year of the Family. According to the survey, every third resident of the country answered that they would like to open their own business. Despite this, Russians still place family and children first, health second, and financial well-being only third. Family and health as the most important life values were chosen by both entrepreneurs and those who are not engaged in business,” said Deputy Minister of Economic Development of the Russian Federation Tatyana Ilyushnikova.

The study shows that by the end of 2023, 21% of Russians of working age (18-64 years old) are involved in entrepreneurial activity (this figure has not changed since 2022). Every third of them has not yet become a full-fledged business owner and is at different stages of its creation – from interest to the realization of concrete actions to start their own business. About one third of respondents said that they already have a business and want to open another one. The same number of entrepreneurs own a business, but do not make attempts to create an additional one.

According to the survey, 14% of 21% of Russian businessmen own or are starting their first business, and 7% have already had entrepreneurial experience in the past.The majority (35%) of beginners and experienced businessmen register their business as individual entrepreneurs, 19% are self-employed, and 13% are legal entities. However, 32% have not yet registered their business in any way.

The survey also showed that 16% of Russians are former entrepreneurs. Of these, 56% closed their business more than six years ago, 37% more than a year ago, and 6% within the last 12 months.

Among those planning to start their own business 32% of respondents want to register individual entrepreneurship, 23% see their future as self-employed, and 5% intend to register a legal entity. At the same time, 36% have no idea how their business will be formalized.

When asked what motivates to start their own business, 38% of respondents said that they want to do it because of the need to earn money for themselves and their families, and 35% – for self-fulfillment. At the same time, young people aged 18 to 35 and residents of cities with a million inhabitants speak more often about self-fulfillment. The need to earn more motivates the older generation (54-64 years old), residents of rural areas, people with secondary education and below.

To start a business, Russians primarily need help with start-up capital (59% of respondents said so), training and counseling (30%, more often women), as well as legal and information support (28%, more often residents of megacities).

Despite the growing interest in business, many Russians are afraid to start their own business. The majority (42%) of respondents believe that they do not have enough knowledge and qualifications for it, and 34% are afraid of failure. Over the past year, these indicators have remained virtually unchanged.

“Almost half of those who want to become entrepreneurs are not sure they have the knowledge and skills to do so, and one in three of them fear failure. We try to overcome these barriers with the help of training and acceleration programs and free consultations, which are available both face-to-face at My Business centers and online. SMEs that received support have a survival rate twice as high as SMEs that did not use support measures,” said Tatyana Ilyushnikova.

These measures of support for business are realized within the framework of the national project “Small and Medium Entrepreneurship”, which was initiated by the President of Russia and is supervised by First Deputy Prime Minister of the Russian Federation Andrei Belousov.

However, compared to 2022, Russians have become more positive about the opportunities for starting a business. A year ago, 39% of respondents said that it was not difficult to start a business in Russia, while now it is 43%. And the share of those who believe that conditions for starting a business in their region will be good in the next six months increased from 22% to 25%.

The project “Entrepreneurs of Russia: Research Monitoring” was created to study the opinions of citizens engaged in the small and micro business segment. It gives entrepreneurs an opportunity to talk about their life in business, express their attitude to the processes taking place in society, share their concerns and expectations. Surveys among entrepreneurs are conducted quarterly, among the population – once a year. About 2200 respondents took part in the survey.

Please note; This information is raw content directly from the source of the information. It is accurate to what the source states and does not reflect the position of MIL-OSI or its customers.

Please note; This information is raw content directly from the information source. It is accurate to what the source is stating and does not reflect the position of MIL-OSI or its clients.

EDITOR’S NOTE: This article is a translation. Apologies should the grammar and or sentence structure not be perfect.

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