STEPAN ZEMTSOV: “SME PLAY AN IMPORTANT ROLE IN RF SUSTAINABLE ECONOMY”
Media outlet “DOLG.RF” in its publication cites projection made by Stepan Zemtsov, senior researcher at the Innovation Economy Department of Gaidar Institute, that this year number of small and medium-sized enterprises will inevitably contract.
According to S. Zemtsov, “the crisis will represent rapid contraction in demand due to the fall in incomes of citizens and collapse of supply due to large scale bankruptcies that will pop up much later after removal of all restrictions. Strengthening of control over enterprises aimed at combating mass layoffs.”
“If the state does not adopt additional urgent measures to support business then crisis development will offset all positive outcome obtained from earlier adopted programs designed to develop SME sector and improve business climate,”- marked expert.
“Now the official proportion of hardest hit industries from coronavirus account for 11% of SME subjects, which constitutes around 2.6% of SME turnover. However, the multiplicative effect will affect all other sectors of economy. Thus, still additionally 64.2% of small and medium-sized firms or around 3.4 mn can cease to exist,”- recaps S. Zemtsov.
“If the state does not adopt additional urgent measures to support business then crisis development will offset all positive outcome obtained from earlier adopted programs designed to develop SME sector and improve business climate,”- marked expert.
“Now the official proportion of hardest hit industries from coronavirus account for 11% of SME subjects, which constitutes around 2.6% of SME turnover. However, the multiplicative effect will affect all other sectors of economy. Thus, still additionally 64.2% of small and medium-sized firms or around 3.4 mn can cease to exist,”- recaps S. Zemtsov.