If not for this subsidy, I would not have dared to open my own business, Nadezhda Yatskovskaya, the owner of a fitness room in Logoisk, admits. And this despite the fact that the bulk of the investment is still her own money.
“To be honest, if it weren’t for this subsidy, I wouldn’t risk it. Because after all, this amount - a thousand dollars - went at least to the step platforms and some of the rugs. That is, when there is some amount, but it’s not enough, this help comes in handy - it catches and pushes, "explains Nadezhda.
Vera Dashkevich, the owner of the Logoisk fitness center, told Sputnik correspondent Vera Dashkevich how easy it was to get state money and how to account for it, and whether she managed to become a successful businessman.
Go into business
Nadezhda decided to go into business for two reasons. Firstly, she loves fitness, and at some point the level of training at the Logoisk sports and recreation center ceased to suit her. She studied in Minsk as a fitness instructor and decided that she was ready to recruit groups herself.
Secondly, she had experience working in an office. For some time she was engaged in advertising in a local newspaper - there was a wonderful team, but extremely modest salaries, not even enough for diesel fuel. "Sitting in the office in one place is not mine," Nadezhda admits.
© Sputnik / Vera Dashkevich
In general, two years ago - at the suggestion of her husband - she purposefully registered as unemployed at the local department of labor, employment and social protection, and then applied for a subsidy. Hope could claim the amount of 11 subsistence minimum budgets - about a thousand dollars in equivalent.
“After I got registered, after some short time I was called to the labor department and sent to entrepreneurial courses in Minsk. They are three weeks long and free. Yes, perhaps something superficial, but thanks to this training I was able to write business plan. She herself, not being an accountant, not understanding all these matters at all, literally sat down and wrote in two evenings. So there is definitely a benefit from learning, "says Nadezhda.
She defended her business plan twice: once before the teachers at the end of the courses, the second time before the commission in the labor department. Then she opened an individual entrepreneur, a bank account, to which the money was transferred to her.
“It was so lightning fast that, frankly, I didn’t even believe it,” admits the mistress of the fitness room.
What was enough state aid
For the state 1930.5 rubles, Nadezhda was able to buy only step platforms and part of the mats for classes.
© Sputnik / Vera Dashkevich
“At that time, one step cost one million two hundred (120 denominated rubles - Sputnik). At the initial stage, I needed 11 steps - 10 for girls and one for me. This is already 12 million 600 out of 19 million. I had to buy part of it for my own, "explains the mistress of the fitness room.
And we also needed dumbbells, balls, mirrors and flooring for a rented gym. It would not have been possible to open a business only for state money, Nadezhda admits.
Was it necessary to account for the spent state funds - for what and how much? Yes, she says. A couple of times I took reports - checks for purchased sports equipment - to the labor department. But she did not feel any super-careful control - in the end, Nadezhda followed the stated business plan. There were no questions for her.
“They generally check, control. But they didn’t come with the question “Where are the steppes?” Because, firstly, I reported, they saw the documents, and secondly, girls from the department went to my classes. And they saw , on what and with what they work here," says Nadezhda.
Is the business profitable
The owner of the new fitness room quite easily and quickly recruited three groups of 10 people each. She says that if she could find another hall, she could take her business to another level.
© Sputnik / Vera Dashkevich
Now she rents a room in the building of a former bakery. She says this is the only room she could find. The building is located on the outskirts of Logoisk - very inconvenient for her girls, you can't get there without a car. At the same time, she admits that she is forced to pay an impressive amount for rent - almost "at Minsk rates."
“We have been working for the second year. And I can’t say that I earn a lot in this business, I have crazy money and I’m just happy. After paying rent and utilities, I have 300-400 rubles left in the season. I pay, in fact, only a communal apartment and rent, I generally forget about the salary. There is no income, "the owner of the fitness room admits.
If not for her husband, she says, this business would hardly have been able to feed her. Still, she insists, in her case, it was worth it.
“I would say that this is my hobby and I work for my own pleasure. If the local authorities would also help to rent a room for a reasonable price… "something salary. But, since I rent from private traders, I have to pay almost all the money for rent and pay for a communal apartment. And if some extra penny appears, I try to buy something - here they recently bought rubber bands, again, they cost money," Nadezhda explains.
Nevertheless, she is determined to develop her business - to find a new gym, buy equipment and take another instructor to help herself. In any case, Nadezhda definitely does not regret that she took the risk of opening her own business.
"Because I'm doing what I love. Even if I don't have a big salary - in Logoisk, in principle, we have small salaries. But for this money, I could sit in the office at an unloved job, from eight to five, and do what I don't like Yes, I can’t live on this salary, but I do what I love. I love the girls who come to me, they are all positive. Look, we are on vacation now, and they write to me in a group in Viber: " When is training?" It's worth something! - the owner of the fitness room explains her point of view.
© Sputnik / Vera Dashkevich
We continue a series of materials on how to attract funding during a crisis. Nikolai Lyakhovsky, director of AVI Investment Company, spoke about the conditions under which entrepreneurs can receive state support for business projects.
We often develop business plans and feasibility studies (feasibility studies) that our clients submit to receive certain benefits or subsidies from government agencies.
I note that a very large number of entrepreneurs are not aware of the benefits and financial support provided by the state. I offer a list of the most interesting opportunities for small and medium-sized businesses.
Preferential lending for the development of new industries
The main criteria for obtaining such a loan are:
- Creation of production of innovative export-oriented, import-substituting products;
- No more than 100 employees.
Conditions. The loan is equal to half the refinancing rate of the National Bank + no more than 3%. Thus, today the loan rate in Belarusian rubles will not exceed 15.5% per annum.
The term of the loan, as a rule, does not exceed 5 years. On average, it is 3 years. The allocated amounts can range from tens and hundreds of millions - up to several billion rubles (depending on how much is included in the state program of the corresponding region for this year).
The procedure for obtaining concessional loans is regulated by Presidential Decree No. 255 dated May 21, 2009 “On Certain Measures of State Support for Small Business”.
Actions. The business plan itself and the package of documents are submitted to an authorized bank, which checks them. The final decision is made by the competition commission of the relevant regional executive committee.
The amounts allocated to local budgets for such soft loans are limited. Therefore, it is best to try to attract such concessional financing in the first half of the year. From our practice, I can say that such loans were allocated not only to some super-innovative, but also to quite ordinary industries, working both for foreign and domestic markets. Moreover, among those who received such funding, there were also companies in the field of agriculture and even a roadside cafe.
Job creation subsidy
Enterprises of any form of ownership can receive a subsidy (budget loan) if they create places for employment of the unemployed, sent by the state employment service.
Conditions. An interest-free loan is provided at the expense of the local budget, temporarily and free of charge (without paying interest for using it). Term - up to 3 years.
The allocated funds can be used for:
- modernization, purchase, installation and adjustment of equipment;
- purchase of raw materials and supplies;
- other goals that contribute to job creation.
The loan can be repaid monthly for the entire period of use of the funds or with a deferred payment of up to 2.5 years.
A budget loan for the creation of new jobs is provided on the basis of a decision of the regional executive committee.
Actions. To resolve the issue of obtaining a loan, you must submit a package of documents, which include a business plan. It will be considered first at the district level, then at the regional level.
Non-refundable grant from the innovation fund of the regional executive committee
Grants are provided on a competitive basis. Primarily:
- for the implementation of innovative projects that provide a high level of added value and export potential;
- for the development of science-intensive and high-tech products.
As a rule, the terms and procedure for the competition are published on the website of the relevant regional executive committee.
Conditions. The grant is non-refundable, and its size can reach $1 million.
Actions.Among the documents provided for participation in the competition:
- application for the allocation of funds from the innovation fund;
- project business plan;
- the company's balance sheet;
- other documents in accordance with the regulation on the competition.
Among our clients who applied for participation in such competitions were both industrial enterprises in the field of chemical production, and companies associated with the processing of agricultural products.
Such competitions are held without much fanfare. The regulation on their holding and information on the acceptance of applications are usually simply published on the website of the regional executive committees. That is why, as a rule, the number of participants often does not exceed 10 companies. However, there are also funny situations. According to one of our clients, he won a competition a few years ago. But he was not given a grant, citing the lack of money in the local budget.
Allocation of land for farming
Agriculture remains interesting from the point of view of medium and small businesses.
Conditions. Farmers can count on:
- free allocation of land for use;
- significant tax benefits - the absence of income tax, VAT as such. This, in turn, allows you to save impressive amounts even with a turnover of more than $100,000.
Actions. In order for the local executive committee to allocate land, it is necessary to provide, among other things, a business plan for the future enterprise.
In our experience, the leadership is firmly held by the agroestate business plan - many clients from the provinces dream of such a business. This is followed by business plans for growing crops - blueberries, potatoes and a number of others are popular.
Subsidy in the employment center for starting a business
The subsidy is provided to the unemployed who are registered with this organization.
Conditions. The subsidy is provided in the amount of 11 times the subsistence minimum budget (today, the BPM is 1,549,790 rubles).
When organizing business activities in small towns, as well as in rural areas, a subsidy is provided in the amount of 15 times the subsistence minimum budget.
When organizing business activities related to the implementation of the results of scientific research and development - in the amount of 20 times.
The procedure for issuing subsidies is regulated by the Decree of the Council of Ministers of March 7, 2008 No. 342 “On Approval of the Regulations on Assistance to the Unemployed in the Organization of Entrepreneurial Activities, Activities for the Provision of Services in the Field of Agroecotourism, Handicraft Activities”.
Actions. To resolve the issue of granting a subsidy for entrepreneurial / craft activities, the following are submitted to the employment department at the place of registration:
- grant application;
- technical and economic, including financial, substantiation (business plan) of the chosen type of entrepreneurial/handicraft activity.
The Department of Labour, Employment and Social Protection considers the documents received and within 3 days makes a decision on granting subsidies to the unemployed. An appropriate contract is concluded with the unemployed.
After receiving a positive response on the provision of a subsidy, you need to submit documents for registration of a legal entity.
Nikolay Lyakhovsky
CEO of the international investment company AVI Investment Company
The company specializes in marketing research and attraction of financial resources.
Offers both private and corporate clients a full range of services related to financial and investment consulting.
Tatyana Kudevich, Deputy Chairman of the Committee on Labour, Employment and Social Protection, Head of the Employment Department of the Minsk City Executive Committee, told the correspondent of the Minsk-Novosti agency who applies for financial support to start their own business and in what areas businessmen from among the unemployed realize themselves.
What kind of assistance in the organization of entrepreneurial, handicraft activities has been provided to Minsk residents since the beginning of this year?
- Our specialists advise unemployed citizens on the possibility and conditions for obtaining assistance in organizing these types of activities, they can also assist in the preparation of a business plan. For those who wish, they organize training on the legal and financial aspects of doing business. Unemployed citizens planning to start their own business can be provided with financial support in the form of a subsidy - a one-time cash benefit.
For 7 months of this year, more than 270 people were consulted on these issues, subsidies were provided to 90 unemployed. In 64 cases (85%), financial assistance was provided for organizing individual entrepreneurial activities, 3 people opened a private unitary enterprise, 8 were engaged in handicraft activities.
- When making a decision to allocate a subsidy, what criteria are you guided by?
- The subsidy is not provided to citizens who are not registered as unemployed in the labor, employment and social protection authorities. Under 18 years of age. Not fulfilling the obligations of the unemployed, determined by the legislation on employment. The subsidy is not re-allocated, and also if less than 12 months have passed since the citizen stopped his entrepreneurial, handicraft activities.
The preferential right to assistance is granted to the unemployed, who, due to the situation on the labor market, are not able to get a suitable job and organize the most significant types of entrepreneurial activity for this administrative-territorial unit, determined by local executive and administrative bodies.
The decision to grant a subsidy is made on the basis of consideration of documents (application for a subsidy, business plan). At the same time, the presence of specialized education and work experience in the chosen type of entrepreneurial, handicraft activity is necessarily taken into account.
The amount of the subsidy is equal to 11 subsistence minimum budgets (BPM), when organizing business activities related to the implementation of the results of scientific and technical research and development - 20 BPM.
Financial support for the unemployed to start their own business is provided for more than one year. Who applies for it more often: men or women, youth or mature people?
- This year, compared to 2017, there are 43 women % of the total number of recipients of assistance, young people under 31 years old has decreased. The average age of the unemployed who decided to go into business has increased to 35 years. This figure is well below the age of the average unemployed, which is 41 today. After 50 years, only a few begin entrepreneurial activity.
- In what areas do new entrepreneurs realize themselves? Are original projects emerging?
- We can say that popular areas are changing. Hairdressing services have become less attractive, since they can be provided without registering an individual entrepreneur. Interest in production activity (manufacturing of furniture, metal products, clothes), and transport services has somewhat decreased. At the same time, many express a desire to engage in trade, construction, finishing, electrical installation and other repairs.
Along with traditional activities, there are successful projects for the organization and provision of information (creation of websites), tourism and legal services.
For reference
The amount of the subsidy from August 1 to October 30, 2018 is 2,350 rubles. Compared to the beginning of the year, it increased by 8%.
From 2010 to 2017, financial support in the form of subsidies was provided to 1,424 unemployed people. In 2018, it is planned to allocate it to 160 Minskers.
Minsk resident Valery addressed the editorial office of Onliner.by. The man claims that he wanted to receive a subsidy, officially open an individual entrepreneur, legally work and pay taxes, but the city authorities refused him without any reason. The Minsk City Executive Committee says that they do not have unreasonable refusals.
“In May, I decided to open an individual entrepreneur and obtain a license for passenger transportation, that is, to start officially“ taxing ”. Moreover, according to the law, when you first open an individual entrepreneur (no matter what you are going to do), you can receive a gratuitous subsidy of about 10-12 million. Just few people know about it. But who knows, he uses. This money does not need to be returned, it is only necessary to report within three months where they went, and work in the declared area for a whole year. More than a dozen of my friends have opened sole proprietorships over the past year and received this subsidy,”- Valery told the correspondent of Onliner.by.
“In order to simply register an individual entrepreneur, it is enough to contact the tax office, spend half a day there - and everything is ready. But in order to receive a subsidy, you need to go through certain procedures. First, be officially unemployed. Therefore, I had to go to the employment center of the Savetsky district of Minsk and register for unemployment. I was even sent to public works: handing over waste paper, weeding the beds in the botanical garden.
A month later, I was told to draw up a business plan: to describe where the money allocated by the state would go. And no one told me exactly how to draw up this document. According to my business plan, the money was used to register the car as a taxi: wrap it up, install a taximeter (it alone costs more than 5 million), obtain a license for passenger transportation (about 1 million), take taxi driver courses, etc. For all this even 12 million was not enough, so I provided for my own investments - 5 million.
Nobody even checked my business plan in the employment center of the Soviet District. They arranged paperwork, fed me with promises, they say, come tomorrow, the day after tomorrow. Then it turned out that their boss quit, and he didn’t want to do anything before leaving - they found my documents in his office, in the corner, among the drafts.
Time has passed. My business plan was sent to the Committee on Labor and Employment of the Minsk City Executive Committee. Then they invited me there for a conversation, and a couple of days later the phone rang in the apartment: “Sorry, you were denied!” They promised to send an official answer with explanations. But I never waited for him. In the end, he could not stand it and went to his regional employment center himself. There, the workers delved into my case for a long time and eventually gave me some kind of piece of paper on which there are no contact details, only a blue oval stamp of the employment department of the Minsk City Executive Committee. According to this document, I was denied. The reasons are as follows: lack of documentary evidence of driver experience, a significant degree of risk. I think it's just a rebuttal! I've had my driver's license for nine years!"
At the same time, Valery admits that he does not have a driving experience recorded in the work book.
“I think that the decision of the Minsk City Executive Committee is unreasonable. In addition, all deadlines for making a decision have been violated! Nobody informed me about anything, nobody handled my case... I want to officially open an individual entrepreneur, get a license and work legally, pay taxes. As an unemployed person, I don't have 15 million to start a business. Where can I apply? Where can I appeal the decision?
For an answer, we turned to the Department of Employment of the Minsk City Executive Committee.
“The question is put wrong. We cannot refuse to register an individual entrepreneur. We analyze the situation of the unemployed and, if there is no opportunity to find a job, if there are good reasons, we offer an unemployed citizen to organize his own business. And refusals cannot be unreasonable. If this person wants to be clearly explained the reason for the refusal, let him come to us, we will give a detailed answer ... As for road transport, let's reason. If you use taxi services, surely you will not get into a car with a person if he does not have a driving experience? But that's just my opinion. To tell you exactly the reason for the refusal, you need to find out the last name and look at the personal file of the unemployed. It's impossible to speak out loud."- said the head of the department.
Are you an aspiring businessman? You are probably aware that we have a program to support small and medium-sized businesses in our country. And if not, then look for the details in our article.
Types of support for small and medium-sized businesses in Belarus:
- a subsidy for starting a business in the Republic of Belarus from the employment center;
- concessional loan for the development of small and medium-sized businesses in Belarus;
- a subsidy for the creation of jobs from the State Fund for Social Protection of the Population;
- grant for business development from the innovation fund of the regional executive committee;
- gratuitous receipt of land in rural areas for farming.
The priority of the state program is the development of agricultural business and business related to innovation, export, import substitution, energy and resource saving.
State support for small and medium-sized businesses in Belarus
We will divide all sources of public funds for business development into non-refundable and those that need to be returned.
gratuitous help
Subsidy for starting a business
The subsidy is issued by the State Employment Service, provided that you are officially unemployed. You can count on these funds if you open an individual entrepreneur, are going to provide services in the field of agroecotourism, or organize a craft workshop.
What can you spend the grant on? For the purchase of equipment, machinery, tools, raw materials, materials. You can use these funds to pay for services and cover any expenses associated with running your business.
3676 rub. 40 kop.(or 20 "living wages") - if you build a business on the implementation of research and development.
2757 rub. 30 kop.(or 15 "living wages") - if you are on the labor exchange in an area with a poor labor market.
2757 rub. 30 kop.(or 11 "living wages") - if you do not fall under the categories listed above.
How to get a grant to start a business?
- contact the employment department at the place of residence;
- write an application for a grant;
- attach a business plan - a rationale for the effectiveness of your business.
Within three days you will receive a response from the employment service.
Important! If you have already received a subsidy or closed another business less than a year ago, then do not count on a subsidy.
Your obligations after receiving the grant:
- you must conduct business for at least 6 months in the first year after registration. If the condition is not met, you must return the money to the state;
- you must report the money spent within 3 months after registering the business. If you do not give a report or spend money not on business, then you will return the entire subsidy and pay a fine.
Grants for the development of small and medium-sized businesses from the innovation fund of the regional executive committee
If you want to organize an unusual, and most importantly, justified business, you can count on a grant. In order to receive this sponsorship, you need to win an applicant competition. Priority is given to projects related to innovation, science, development and production of equipment, production of products for export.
How to get a business development grant?
- Make a business plan. In the same place, indicate the purpose and amount of the grant.
- Submit a business plan to the regional executive committee along with a certificate of state registration, constituent documents and a certificate of your entry in the register of business entities.
- Write an application for the allocation of funds from the innovation fund.
Important! The money from the grant is not yours personally. They are issued to the company under your personal responsibility.
Allocation of land for farming
Being a farmer in Belarus is profitable. In this case, you receive tax benefits (do not pay VAT) and can count on a free lifetime lease of up to 100 hectares of land in rural areas. Moreover, you can transfer the land by inheritance, but not exchange or sell.
How to get a plot to open a farm?
Go to the village council / collective farm and specify the location of free land. Coordinate with local authorities/organizations the possibility of leasing land for farming. You will receive an answer within two weeks. But this is only the initial agreement.
Official approval:
- submit an application to the local executive committee;
- attach the business plan and decision of the village council/collective farm;
- expect a response within a month.
If you live in the area and have experience in agricultural work, then you are more likely to receive land for free rent.
Funds to be returned
Job Creation Subsidy
Are you ready to hire people who are registered with the employment service? Then you are entitled to an interest-free loan for up to 3 years to create new jobs, regardless of the form of management of your business.
What are you eligible to spend money on?
- for the improvement of production, the purchase and adjustment of equipment;
- for the purchase of raw materials and materials;
- for any other purpose related to the creation of new jobs.
Before applying for a loan, prepare a business plan.
Preferential loan for the development of small and medium-sized businesses in Belarus
The regulation on state support for small businesses in the Republic of Belarus is spelled out in Decree No. 255 of May 21, 2009 "On some measures of state support for small businesses." According to the regulation, you can count on lending at a preferential interest - 50% of the refinancing rate at the time of the loan + no more than 3%. In this case, the bank does not charge any additional commissions and payments from you.
You can count on a preferential loan for business development if:
- open, develop and expand the production of goods, works or services;
- organize or develop the production of innovative import-substituting products or goods for export;
- are engaged in the production of products related to energy or resource saving;
- implement new technologies.
Conditions for concessional lending:
- you should not have any debts to the state;
- your business should not be unprofitable;
- your business must not be reorganized, liquidated or declared bankrupt at the time of applying for a loan.
The package of documents for obtaining such a loan in different banks may differ. But a business plan will be required of you in any bank. To get a loan, you do not need to be served by a lender. The maximum term of concessional lending is 5 years.
As you can see, the state program to support small and medium-sized businesses in Belarus is working. We hope that our article will help you find funds to grow your business.
