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 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), while 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 activities (manufacturing of furniture, metal products, clothing), 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.
NICHOLAS, Braslav.
As explained by the head of the department of employment and social and labor relations of the district executive committee, Tatyana Bogorod, in accordance with the law, the department assists the unemployed in organizing entrepreneurial activities. This includes financial support and advice.
In addition, the unemployed can be trained in the manner prescribed by law, both in the specialty necessary for organizing a certain type of activity, and in the course "Fundamentals of Entrepreneurship". This course provides the knowledge necessary for the successful organization and conduct of one's own business, on the basics of entrepreneurial activity, financial and statistical management, and tax legislation.
But we must remember that financial support is provided only to the unemployed, who are officially registered with the employment service, and is issued in the form of a subsidy at the expense of the state extra-budgetary fund for social protection of the population of the Republic of Belarus.
A prerequisite, notes T. Bogorod, for the provision of subsidies to the unemployed is the development of a feasibility study and financial justification for the effectiveness of the type of activity being organized. Simply put, in order to receive financial support, an unemployed person must submit a business plan.
The subsidy is provided in the amount of 11 times the average subsistence level budget per capita in force at the date of conclusion of the contract.
When the unemployed organize entrepreneurial activities, activities for the provision of services in the field of agro-ecotourism, handicraft activities for the unemployed, registered at the place of residence in rural areas, a subsidy is provided in the amount of 15 times the BPM effective on the date of conclusion of the contract.
It should be remembered that the subsidy provided to the unemployed can only be used for the purchase of equipment, tools, raw materials, payment for services related to the organization of business activities, activities for the provision of services in the field of agro-ecotourism, handicraft activities.
The subsidy is provided only to the unemployed who have reached the age of 18, who have not violated the country's legislation on employment. If there are no violations, the unemployed person submits an application for a subsidy and a business plan to the employment department, which is carefully studied. Therefore, its preparation must be approached responsibly.
According to the decision of the district executive committee, preference is given to projects that are focused on a specific locality and the needs of its population. So the most important thing here is to find a free niche. Practice shows that entrepreneurial activity is organized by the unemployed mainly in the field of domestic services. A specific list can be found in the department.
A newly-made businessman, in turn, needs to remember that within 3 months from the date of registration as an individual entrepreneur or registration of a private unitary enterprise, a peasant (farm) economy, as well as from the date of registration with the tax authority at the place of residence as a person carrying out activities for the provision of services in the field of agro-ecotourism, handicraft activities, he must submit documents and receipts to the labor, employment and social protection authorities confirming the expenditure of the subsidy in accordance with the business plan. The spending of funds must correspond to the directions stated in the business plan and the appendix to the contract.
In conclusion, T. Bogorod noted that since financial support by the state is provided once, it is impossible to receive a subsidy again, so you need to try to invest the money received as efficiently as possible. ■
Fund information
July 12, 1999 President of the Republic of Bashkortostan M.G. Rakhimov signed Decree No. UP-455 on the creation of the “Fund for the Development and Support of Small Business of the Republic of Bashkortostan”. The novelty and boldness of the approach was determined by the fact that, along with the state, the founders of the Fund were representatives of the business community of the republic.
For 15 years, the Fund has been a conductor of state policy in the field of development and support of small and medium-sized businesses in the business community of the republic.
The Fund has become a key element of the state support infrastructure for small and medium-sized businesses, annually carrying out a whole range of versatile activities of the republican program for the development of small and medium-sized businesses.
The key position of the Fund is determined by its place in the overall structure of business support. From the moment of foundation, the Foundation has taken an active part in legislative activity. Its specialists have made efforts to develop all the legal acts existing in the Republic of Bashkortostan in the field of entrepreneurship support.
The Fund is a self-sufficient, profitable organization and makes a significant contribution to the economic life of the republic. Thanks to his activities, Bashkortostan occupies one of the most advanced places in the district and the country as a whole in terms of favoring small and medium-sized businesses. Creating new jobs, providing the population with the necessary goods and services, increasing tax revenues are all components of the Fund's participation in the development of our region.
The social base of entrepreneurship should be expanded not only "by itself" - the ground must be prepared for it, including among young people. To this end, all these years, the Fund, together with non-governmental public organizations, has been taking an active part in organizing competitions, seminars, meetings and conferences related to the promotion of entrepreneurship among the population of the republic.
Entrepreneurship support
Every year, the Fund participates in the implementation of activities of the Republican Program for the Development of Small and Medium-Sized Businesses.
In accordance with the tasks assigned to the Fund within the framework of the Republican Program, the Fund:
Carries out replenishment, updating and maintenance of the information and analytical system of the Internet portal "Small Business of Bashkortostan";
Prepares educational, methodological, information and reference materials, thematic booklets on the types of state support for entrepreneurship;
Every year it provides organizational and consulting assistance to more than 3 thousand entrepreneurs.
Main activities:
— Implementation of the activities of the state program "Development and support of small and medium-sized businesses in the Republic of Bashkortostan";
– Consulting and educational services;
— "Hot line" for entrepreneurs;
— Ensuring the activities of the Business Support Center of the Republic of Bashkortostan (Business Center "Capital");
— Participation in the organization of seminars, conferences, forums, competitions, conferences, publication of reference and information literature.
Financial support for small businesses:
— Provision of guarantees at the expense of the guarantee fund;
— Provision of fixed assets on leasing terms;
— Provision of loans at the expense of the investment initiatives support fund.
Subsidy for small business rb
A new coworking center for entrepreneurs has opened in Ufa
The results of the work of the territorial bodies of the Federal Tax Service of Russia in the Republic of Bashkortostan on the performance of the function of a currency control body for the 1st half of 2018 were summed up
On August 29, 2018, the RBC-Ufa TV channel at the Sheraton Ufa Hotel will organize a round table on the topic “Shared construction. New rules of the game and first results»
Important news
Acceptance of documents for the provision of financial support in the form of subsidizing part of the costs has been announced
Notice of an open tender to select a credit institution to place temporarily free funds of the guarantee fund on current accounts from 08/20/2018 to 09/21/2018
Notice of an open tender for the selection of a credit institution to place the funds of the guarantee fund in deposits (deposits) from 20.08.2018 to 21.09.2018
Event announcement
The selection of IT projects for participation in a free intensive training and development program continues
Entrepreneurs of the republic are invited to a business mission in Chelyabinsk
Free webinars for entrepreneurs
The Ministry of Forestry of Bashkortostan put up 90 lots for small and medium-sized businesses at auctions
The Association of Entrepreneurship Organizations of the Republic of Belarus invites entrepreneurs for individual consultations in August
GC "Soft-Service" together with the company "1C" invites you to take part in the workshop "Document Management Day"
Acceptance of applications for participation in the republican competition "Entrepreneur of the Year - 2018" begins
How to get government assistance for small business development?
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 into 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 rate - 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 loan term 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.
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Department of Employment of the Committee on Labor, Employment and Social Protection of the Minsk City Executive Committee 113 Nezalezhnosti Ave.
tel.: +375 17 2675740
If you are unemployed, but you are enterprising and want to start your own business, the employment office can provide you with the following types of assistance:
- advising on how to organize your own business;
- testing the business qualities of the unemployed and assessing the prospects for the chosen type of entrepreneurial, handicraft activity;
- direction for training in the basics of entrepreneurial activity;
- providing financial support in the form of a subsidy.
THE SUBSIDY CAN BE GRANTED TO PERSONS:
- over 18 years of age;
- registered with the employment service as unemployed and planning to organize entrepreneurial or craft activities;
- experiencing difficulties in finding employment in existing vacancies;
- who fully performs the duties of an unemployed person in accordance with the Law “On Employment of the Population of the Republic of Belarus”.
SUBSIDY- a one-time non-refundable state cash benefit equal to 11 times the cost of living budget. When organizing business activities related to the implementation of the results of scientific and technical research and development, its size is 20 times the cost of living budget.
The funds provided to the unemployed in the form of a subsidy can be used by him to purchase equipment, tools, machinery and mechanisms, raw materials, to pay for services, as well as for other purposes related to the organization of entrepreneurial, handicraft activities.
To resolve the issue of granting a subsidy for organizing entrepreneurial or handicraft activities, an unemployed person submits to the citizen service department at the place of his registration:
- statement on granting a subsidy;
- technical and economic, including financial justification ( business plan) the chosen type of entrepreneurial or craft activity.
Labor, employment and social protection authorities consider the documents received and decide on the provision of subsidies to the unemployed.
With an unemployed person who has received a positive decision on the provision of a subsidy, the labor, employment and social protection authorities conclude an appropriate contract.
The subsidy for the organization of entrepreneurial, handicraft activities is transferred to the current (settlement) bank account of the unemployed.
An unemployed person who has received financial support must, within 3 months from the date of registration as an individual entrepreneur (private unitary enterprise) or a person engaged in handicraft activities, submit documents confirming the intended use of the allocated subsidy. In case of failure to submit such documents within the specified period or inappropriate use of financial assistance, the citizen returns the amount of the subsidy and pays the fine established by the agreement.
An unemployed person who has received a subsidy is obliged to carry out entrepreneurial, handicraft activities. If he does not carry out entrepreneurial activity for more than 6 months within a 12-month period from the date of state registration as an individual entrepreneur (private unitary enterprise), the citizen is obliged to return the amount of the subsidy received.
The unemployed, if less than 12 months have passed since the termination of their entrepreneurial activity, handicraft activity, and also if they have previously received a subsidy, such financial support is not provided.
The provision of financial support to unemployed citizens for organizing entrepreneurial, handicraft activities from the budget of the state extra-budgetary fund for social protection of the population of the Republic of Belarus is regulated (Regulations on assisting the unemployed in organizing entrepreneurial activities, approved by the Resolution of the Council of Ministers of the Republic of Belarus dated 07.03.2008 No. 342).
Subsidy for starting a small business: design and use features in 2018
Not all start-up entrepreneurs are aware that they are entitled to a state subsidy for starting a small business in 2018. But government subsidies are an opportunity to receive a certain amount to replenish start-up capital without burdening yourself with expensive loans and getting into endless debts. At the same time, it is important to take into account the fact that the state contribution is provided without a mandatory return.
The state is interested in the development of small business, as it revives the economic situation, contributes to the expansion of the market, and the development of the competitiveness of domestic production.
Last year, based on the budget, the Russian Federation was ready to spend 17 billion rubles on subsidies to small businesses. In 2018, this amount, unfortunately, was reduced to 11 billion rubles. It can be assumed that these funds will most likely finance already started projects. Nevertheless, many are attracted by the opportunity to receive a subsidy from the state to open and run a business. Start-up entrepreneurs are supported by such structures as:
- Employment Center;
- Department of Entrepreneurship;
- local administration.
It should be noted that those individual entrepreneurs who have gone through all stages of development and used the state subsidy program note the loyal conditions for obtaining subsidies and the promptness of the entire procedure.
The nature and purpose of state subsidies
It should be noted that the considered financial deductions are gratuitous, in contrast to commercial bank loans. An individual entrepreneur, receiving such a subsidy, assumes a certain range of obligations, but they are not directly financial in nature. To this day, these rules remain valid.
In addition, special support is planned for 2018 in the field of innovation, agriculture, medicine, tourism and, of course, education. Economic analysts already today predict a significant surge in activity of small and medium-sized businesses.
As experience has shown, receiving a subsidy from the Russian state is a fairly effective and expedient mechanism for activating the segment of small and medium-sized businesses. The main feature is that in different regions the conditions for entrepreneur support programs may differ.
Algorithm for obtaining state subsidies in 2018
The procedure for obtaining a subsidy for the development of small businesses is characterized by some technical and legal features. First of all, you need to be an IP officially. If there is such a status, then it is necessary:
- registration of an individual entrepreneur in the Employment Center of the status of an unemployed person and inclusion in the relevant state registers;
- submission to the Employment Center of a thoroughly developed business plan (this document includes the proposed scope and nature of future activities, indicating the location of the enterprise; the need for technical equipment and raw materials; the level of expected income; analysis of the profitability of the project as a whole);
- approval of the business plan at the Employment Center;
- IP registration with the Federal Tax Service;
- re-applying to the Employment Center with an application for receiving subsidized funds, supported by a package of necessary documentation;
- conclusion of a subsidiary agreement between individual entrepreneurs and the state.
The principal feature of this small business financing system is the absence of the need to return material resources received by individual entrepreneurs from state bodies when opening a new enterprise.
Employment Center: ensuring effective monitoring of the economic activity of the population
The initial stage of obtaining subsidies when opening a private enterprise is handled by the Employment Center - it is here that all the basic information about the business activity of all categories of the population of the Russian Federation is concentrated. The employment center considers the business ideas submitted by job seekers and determines their viability.
All initial information about the individual entrepreneur, his business plan, and the predicted level of economic efficiency passes through the Employment Center.
In 2018, the role of the Employment Center in the procedure for regulating the economic activity of the population is expected to be further strengthened, this is due to the fact that many citizens are now in search of a permanent source of income. In addition, it is necessary to achieve maximum transparency and efficiency of the mechanism for obtaining state subsidies.
In particular, the Employment Center provides a full range of necessary documentation in the shortest possible time, and the employees of the Employment Center are highly qualified and ready at any time to provide the full range of theoretical and practical assistance necessary for individual entrepreneurs at the stage of registration and opening their own business.
Features of obtaining a subsidy and intended use
Each individual entrepreneur, when opening his own enterprise (even under a franchise), has the right to receive state support. The amount of such a subsidy varies depending on many factors, including the social status of the entrepreneur, but cannot be less than 60 thousand rubles.
Insurance, lending and banking services are not subject to state subsidies.
For all other legal activities, funds can be obtained if the entrepreneur has his own start-up capital in the amount specified by law.
It is much easier for those who have a Moscow residence permit to obtain subsidies in the capital, and, in addition, such entrepreneurs rely on several categories of subsidies to choose from.
The capital registration also determines the general subsidizing algorithm, which is not always true for start-up entrepreneurs from other, more remote regions of the Russian Federation.
An individual entrepreneur, receiving a subsidy, undertakes to spend this financial amount on the development of his own business, but he can determine the scope of the initial application of capital on his own. For example, funds can be directed to:
- improvement of the material and technical base of the enterprise;
- purchase of necessary equipment and industrial capacities;
- repair, expansion and construction of new premises for the enterprise;
- purchase of raw material base for production;
- expansion of staff;
- costs of the company's intangible assets.
Individual entrepreneurs may also provide for other items of expenses related to the opening and development of their own business. In general, the legislation of the Russian Federation is quite liberal in the sphere of distribution of subsidiary funds. The entrepreneur enjoys complete freedom in regard to the use of funds received as a result of subsidies.
An important point when receiving financial assistance in 2018 is that if an individual entrepreneur applying for a subsidy has not officially worked anywhere over the past five years, the specialists of the Employment Center can legally refuse to receive material assistance. After all, if a person previously had money from somewhere for everyday needs, then in the future he is able to provide for himself.
It is worth remembering that subsidies for business development are gratuitous. The return of subsidiary funds is not provided for by law. An exception may be only certain cases stipulated by the mechanism for granting subsidies.
The only condition is to receive full and reliable reporting of the entrepreneur on the costs incurred. The Employment Center and the fiscal control authorities collect and verify this information.
In case of misuse of the provided funds, the state has the right to demand their return, taking into account a certain amount of a penalty. However, such precedents are extremely rare, since most start-up entrepreneurs are extremely responsible for the opportunity to receive financial state support for the development of their own business.
