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Nov 16, 2022
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Cleaning up small and medium-sized businesses is beneficial for someone, but definitely not for Russia

Cleaning up small and medium-sized businesses is beneficial for someone - but definitely not for Russia

Photo: Alexander Kolbasov / TASS

The number of business entities in Russia is decreasing both due to ruin and as a result of the activities of state structures. In terms of the degree of “lethality”, officials are clearly in the lead, it seems that someone has set them the task of conducting a total cleansing of all small and medium-sized businesses (SMEs) of the Russian Federation. In addition to purely economic consequences, these acts clearly indicate the intention to “rock the boat”, that is, to cause social tension.

According to the data of the Federal Tax Service (FTS), in October the number of individual entrepreneurs (IEs), the most common business entities, decreased in the Russian Federation. If the data is correct, then it seems like not by much, only by 1.53 thousand, that is, by 0.04%, to 3.857 million (there are fewer legal entities of all types – only 3.4 million). Nevertheless, a very alarming bell,

In October, 52.3 thousand individual entrepreneurs and peasant farms (PFHs) were liquidated, which is 34% more than in the same period in 2021. Yes, compared to September 2022, this is only 1.7% more, but even here a negative trend is visible. According to the registration of new individual entrepreneurs and peasant farms, everything is much sadder, it fell immediately by 25% compared to September of this year.

Undoubtedly, partial mobilization made its contribution. Someone left, others went to fight. Moreover, these are the most economically active citizens – young and able-bodied.

De jure there are about 75 million economically active people in our country, de facto – about 40 million, or even less. For the sake of beautiful statistics, they count everyone – ending with deep old people.

“If you look at the data from the International Labor Organization, you can see that the vast majority of countries do not have an upper age limit. People aged 15 years and older are taken into account. There are countries where the upper bar is set at 70, 72 or 77 years. But I think it’s more correct to remove it altogether, since many continue to work after retirement, ”the then head of Rosstat broadcast in 2017 Alexander Surinov.

This is the same one who, a year later, was asked to write a statement of his own free will with a kick in the grid. For, despite such shahermachers, he still got bad statistics. Ugly.

If we do not go to extremes and accept the figure of 40 million, then it turns out that in a month Russia has lost about 4% of workers, and the most efficient ones. And not only the youngest and healthiest, but also not so young, but experienced and educated. After the excesses during the mobilization, when, contrary to the issued decree, they began to call on men over 50 years old – not chief officers, but simply privates and junior command personnel – they rushed after the youth. It is reluctant to die, and not for the Motherland, but for the oligarchs and officials.

So, the factor of mobilization/migration, which various “experts” like to refer to, really takes place. To deny it is to sin against the truth.

However, the situation must be considered in dynamics, and just such is not encouraging. If you look at 2021, after the abolition of the wrecking “coronavirus” restrictions and until the spring of this year, the number of new individual entrepreneurs / peasant farms was on average 20-25 thousand higher than the number of closed ones. That is, people at the very least tried to develop, the SME did not die and even slowly progressed. Very slowly, but still.

Since the spring of this year, this small plus gradually began to decrease, dropping to about 10 thousand. Again, there were objective factors. The sharp decline in imports hit trade hard. But not only. Many small industries that were tied to imported raw materials were closed, and domestic analogues did not appear. Because reindustrialization often remained on paper, no new large factories have been created in the Russian Federation. If someone thinks otherwise, let them give examples. Namely, production – when a finished product is obtained from our local, Russian raw materials, which can be used instead of foreign goods.

SMB is not capable of such feats simply because of the small amount of funds. Although, having behind large production, this sector of the economy works wonders. In China, SMEs employ 83% of the able-bodied population; these structures account for over 60% of GDP. In the United States – 52% of Americans and 56% of GDP, in Japan, respectively, 72% and 55%, in Germany – 57% and 43%. And in our country, according to very controversial data from Rosstat, this is only 27% of the employed and 20% of GDP. Even in Vietnam, and then 50% of the working population and 40% of GDP. That is, our situation is just a disaster!

Russian people want to work for themselves and for their country, but officials are against it. Since a well-earning person is independent, he does not care about the opinion of the authorities, he thinks with his own head and makes decisions in accordance with logic. On the contrary, a state employee who is sitting on state subsidies is fully manageable, as well as an employee of large structures such as Gazprom or Rosneft. Whatever they tell him, he does. In fear of being without a livelihood.

That is why lending to SMEs in the Russian Federation is strictly prohibited, de facto banks are not allowed in principle. The refinancing rate, of course, also matters, but even an expensive loan will simply not be given. Because there is nothing.

“After February 24 this year, the situation in the country as a whole and in its economy has changed radically. De facto, the collective West is waging an undeclared war in all directions against Russia. Such a war requires maximum economic mobilization. The meaning of economic mobilization is quite simple and understandable: the most complete and efficient use of all economic resources available in the country and their further increase in order to achieve the goal,” says Doctor of Economics, Professor Valentin Katasonov.

He speaks correctly. And what are the authorities doing? Definitely not economic mobilization. For example, from March to June of this year, 113.5 thousand enterprises were closed in the Russian Federation – 17.5% more than in the same period last year. Moreover, in 68.7% of cases – at the initiative of the Federal Tax Service! Like fictitious enterprises and all that. These are no longer objective difficulties, but quite subjective ones.

There are no data for the third quarter, but they also promise to be no less sad. Especially in light of the fact that the Federal Tax Service is now promoting the so-called “restaurant business” and, together with the Ministry of Internal Affairs, is pressing restaurateurs with might and main. Allegedly, entrepreneurs from public catering evade paying taxes.

However, “pressed” now all. IP too.

“I closed my IP back in September, as they got it through checks. Well, now I don’t have a profit, there are no turnovers either. Since spring, full (unprintable expression), and then they began to get it from the tax office. That I’m kind of cheating. The bank account was arrested, some penalties were calculated. Paid, closed IP. Now I work like this, on my own, ”says entrepreneur Alexei.

A man once sat – for business. But he found the strength to break with the past, became an honest worker, organized his own small car service. And here’s a trick…

“The entire socio-economic policy, consistently and effectively implemented by the ruling liberal clan throughout all 35 years of national betrayal, is objectively aimed not only at blocking Russia’s progress, but also directly at its destruction,” said the deputy chairman of the State Duma Committee on Economic Policy Mikhail Delyagin.

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