Малый бизнес в Республике Беларусь

Essay “Small business in the Republic of Belarus”

Small business is a business that relies on the business activities of small firms which are not formally members of an association.

There has been a huge boost in the number of small businesses and entrepreneurs in Belarus in recent years. More and more people are getting into business.

New businesses are springing up across Belarus with the number of registered firms increasing from 29,044 in 2002 to more than 96.929 in May 2012, and employing more than 1,1 million people. Today small business in your country accounts about 20% of GDP.

This sector is being helped by the Council for Entrepreneurship in Belarus which acts as a forum for the small business community to communicate with government to improve the business environment. Development and regulation of small business in the Republic of Belarus are carried out by the Department for Enterprise of the Ministry of Economy of the Republic of Belarus

The European Bank for Reconstruction & Development has reported that the Small and medium enterprises (SME) sector in Belarus has been developing quickly and expects it to continue to do the back of a lower tax and administrative burden.

It’s important to highlight that there are some factors and reasons preventing small businesses and the private sector of economy in a whole from further development:

1) High taxes. Since January 1 2012, our country goes into a common economic space with Russia and Kazakhstan. In this case, we have much higher contributions to the Social Security Fund (34% vs. 26% in Russia and 11% in Kazakhstan), higher value-added tax, income and several more.

2) A family business. Under the law, individual entrepreneurs can employ only relatives. Of course, these staffing constraints are prevented.

3) Weak state support. Again, compared with Russia and Kazakhstan financial assistance from the state in the development of small business is very low. Until recently, the budgets of both republican and local, has not been laid for the cost of supporting entrepreneurship.

4) Unequal conditions for public and private businesses. That is, of the Constitution contains a single, but in reality the public sector always has an advantage. Now, for example, businesses do not do justice to the implementation of the self-employed meat and dairy products, preferring to work with state trade organizations.

5) Lack of a property from the owners. The vast majority of small and medium-sized businesses are the tenants. Not having their property, such a business is not as likely to invest. The government has promised that the situation will change, but how and when - is still unknown.

6) State orders only accrue to the state sector. In Russia required a minimum of 10% state orders goes to the private sector in our country until the quota has not been established, and therefore a lot of money paid out of state orders, pass by small businesses.

7) The State takes currency. It is known that 30% of foreign exchange earnings entrepreneurs redeems State at the rate of National Bank. For many, this figure is critical. Open foreign currency accounts abroad entrepreneurs today is prohibited.

8) High fines. Many experts say that despite numerous attempts to bring order to the control of a small business, there are still many uncertainties, and the amounts of fines may be so high as to lead to ruin.

To start your own business is very difficult. There are many risks associated with bureaucracy and jurisprudence. But in spite of this, more and more people to become entrepreneurs. Each of them pursues his personal goals: for some it's a lifelong dream, someone dreams of financial independence. In any case, if the business is viable and brings a stable income, it is worth it.