STEPAN ZEMTSOV: “LESS THAN 10% OF PRIVATE ENTERPRISES BENEFIR FROM THE STATE SUPPORT IN RUSSIA”
Stepan Zemtsov, Senior Researcher, Innovation Economics Department of the Gaidar Institute, spoke to “Nezavisimaya Gazeta” on untimely state support provided to the small and medium-sized business sector threatened with bankruptcy amid crisis.
The crisis caused by coronavirus pandemic resulted in the unprecedented slowdown of the world markets growth rate. The reduction in household consumption and disruption in value chains hit business hard. As a result, every third enterprise in Russia is under the threat of bankruptcy. Even the measures announced by the authorities aimed to support business as well as a moratorium on bankruptcy will not be able to abrogate this process.
“Less than 10% of all private enterprises benefit from the state support in Russia under normal conditions. Small and medium-sized businesses seek to avoid contacts with the state, as they have little trust in the state and fear additional checks and risks associated with obtaining support.
However, obviously, the number of the support recipients has significantly increased amid crisis. Though, the support itself was tardy, there were certain challenges related to targeting and selection of priority industries”, Stepan Zemtsov, expert of the Gaidar Institute highlighted.
“Less than 10% of all private enterprises benefit from the state support in Russia under normal conditions. Small and medium-sized businesses seek to avoid contacts with the state, as they have little trust in the state and fear additional checks and risks associated with obtaining support.
However, obviously, the number of the support recipients has significantly increased amid crisis. Though, the support itself was tardy, there were certain challenges related to targeting and selection of priority industries”, Stepan Zemtsov, expert of the Gaidar Institute highlighted.