What types of small businesses are the most profitable in Russia: overview of areas

Definition of small business

A small firm or enterprise owned by one or more private individuals is classified as a small enterprise. The definition of a small business includes a limit on the number of employees. Also, small businesses have low turnover and revenue.

Cooperation between businesses at different levels

This area includes individual entrepreneurs, that is, individual entrepreneurs, and small LLCs. Main criteria for small business:

• Income from activities.
• Staff.

Industry structure of large business in Russia

Almost all domestic large business arose on the basis of the Soviet economy. Enterprises simply changed owners, continuing to operate in the same industries. Most companies are concentrated in mining and mechanical engineering. The flagships are such well-known corporations as Gazprom, Rosneft, Norilsk Nickel Plant, AvtoVAZ and others.

Agricultural holdings and companies engaged in processing agricultural products are breathing behind them in terms of production volumes and, accordingly, revenues. Perhaps the ordinary public does not know these names, but analysts of large businesses in the Russian economy are well aware of such companies as Rusagro, Prodimpex-Holding, Agrokom. In our country, where the problem of nutrition is always quite acute, it would be, at least, short-sighted to downplay the importance of this industry.

The concept of a small and medium-sized enterprise

Persons who carry out activities to generate income are classified as small and medium-sized businesses.

Business growth

The scope of activity can be varied:

• use of residential or non-residential property;
• sale or resale of goods;
• providing services or performing a wide variety of work.

Criteria for classification as subjects

The legislative justification for whether a particular enterprise will be a small business or classified as a medium-sized one is explained in Article 4 of the Law “On the Development of Small and Medium-Sized Enterprises in the Russian Federation” in 2007. This document accurately describes the division into medium-sized businesses and indicates the main criteria for small businesses.

Attention! Large businesses also determine the criteria for their inclusion in the register by law and include the “sharks of the business elite.” The amount of income exceeds 2 billion rubles, the number of employees should number more than 250 people.

For small and medium-sized businesses, the inclusion criteria in 2019 are as follows:

• Number of employees. For a small business - up to 100 people, for medium-sized businesses - up to 250 people.
• The profitability of small businesses should not exceed 800 million rubles per year, medium-sized businesses - up to 2 billion rubles.
• Share of participation of external organizations in capital. This category of small and medium-sized businesses includes those firms in which the total share of participation of state-owned enterprises does not reach 25%. They may also include non-profit, religious or charitable foundations. Provided that legal companies or organizations that are not small or medium-sized businesses have a share of no more than 49% in their authorized capital.
• The enterprise carries out innovative or intellectual activities. These include all divisions of Skolkovo, all joint-stock companies involved in the development and implementation of innovative or high-tech products. Also, scientific societies and organizations that introduce an intellectual product to the market are subject to mandatory inclusion in the register.

According to the adopted law, these figures do not apply to limited liability companies that have external (foreign) capital, and organizations that are not related to micro enterprises.

Categories of subjects

The definition of the category of entities belonging to small or medium-sized businesses is determined by the highest number of employees and the income component of the activity. The category is subject to change only if the “peak” indicators are exceeded for 2 years in a row.

The number of employees is calculated taking into account all employees, even those who work under employment agreements or part-time, and the average number for the reporting period is taken.

What does IP refer to?

Decoding of the generally accepted abbreviation IP - individual entrepreneur. Individuals who have registered in accordance with the procedure established by law and carry out profit-making activities are called individual entrepreneurs or individual entrepreneurs. Also included in this category are peasant farms.

Entrepreneurial activity

Attention! Persons who are not registered in accordance with the procedure established by law cannot be called individual entrepreneurs.

Individual entrepreneurs, according to Russian legislation, also belong to small or medium-sized businesses. The main condition is that the activity must meet all of the above requirements and not go beyond the legal framework.

Small business ideas with minimal investment

A type of activity that brings high income will be work in the field of innovative technologies; a business associated with non-standard approaches to solving people’s problems can also become very effective. People with creative thinking can create startups with minimal expenses. You should also consider the following business ideas:

1. A very relevant modern project is the provision of financial advice to the population. Many people are interested in issues related to the correct and economical use of funds, obtaining a loan and investing money profitably.
2. A good option for a small business might be the idea of ​​creating a website to sell goods or provide various services. Moreover, in the future, you will be able to both develop the project and sell your already promoted portal for a good sum. An important advantage of this business is that it is available to people of completely different ages in any city or town in our country.
3. Trading in financial markets is a profitable activity. However, this kind of income requires good knowledge in the field of trading, but experienced entrepreneurs make good profits.

Useful: business with small investments.

Business ideas for beginners

People who are just going to organize their own business and are not ready to take risks by investing large sums of money should start such activities with small volumes and increase their investments as their income grows. If you own a garage, then the following light business is perfect for you:

• Fuel products gain popularity during certain seasons of the year, particularly the fall and winter months. Therefore, an excellent business idea for beginners would be to produce briquettes from wood processing waste. The result of this type of activity is good profitability in the cold season, and in the warm season, it becomes possible to maintain demand through the consumption of briquettes for picnics.
• More complex, but no less profitable, is the idea of ​​​​creating a private enterprise for breeding expensive fur animals. This type of activity guarantees a constant demand for products. For this business, it is necessary to insulate the walls, install air conditioners in the garage for ventilation and stable temperature inside the room. Small animals will not require serious care and more food. Therefore, one worker can control them.
• During periods of crisis, people try not to buy everything new, so the importance of selling spare parts and used items increases. Thus, accumulating used tires in the garage can be a very promising way to make money.

Business ideas for small businesses from scratch

People who do not have start-up capital to start a business should not be upset. There are very original ideas for building a business that do not require any investment:

A business from scratch, without any investments, can become promising if you start manufacturing garden furniture and decorative elements for estates. You can sell products by compiling a catalog of goods for customers, as well as carry out individual orders.

Cultivation, collection and distribution of herbs for medicines to pharmaceutical companies. This will be a good business from scratch, and it will not require any investment.

Many people resort to using the services of massage therapists and individual fitness trainers because they care about their health. Therefore, if you have the necessary skills, developing a business in this area will not require any investments and will bring good income.

Useful: business ideas from scratch.

Small business franchises with minimal investment and great interest

People are willing to pay a high price for the educational process and upbringing of their children. Therefore, it is very profitable to use franchises for small businesses in this area.

The success of this type of activity can be guaranteed by time-tested methods from all over the world aimed at the development of children, as well as their language learning, which have collected many positive reviews. Such ideas for franchises should be looked for in the following areas:

• Child Development Center,
• English language school,
• Workshop on creating cartoons for children.

A small coffee shop is offered to open many franchises. This is a good thing.

Where to get funds to start your own business

1. Take advantage of accumulated savings
2. Borrow from relatives or friends
3. Attract an investor or co-founder to the business on favorable terms for you
4. Take out a loan from a bank that will satisfy your ability to repay it

The information presented in the article should help people who want to organize their own business, but have not yet decided what it should look like. The article will allow you to draw appropriate conclusions, and will also help many beginning entrepreneurs.

Features of small and medium-sized businesses

According to the experience of more developed countries, the harmonious development of small and medium-sized businesses plays a huge role in shaping the economy. It is also this segment that allows us to solve social issues.

Enterprise support

Competent development and government support allow enterprises to positively influence the economic growth of a particular region, the formation of scientific and technological progress, saturation of the market with goods, and the creation of additional jobs.

Advantages

SMEs have certain benefits:

• they are allowed to keep any amount of money in the cash register, and they will not be fined for it;
• they have the opportunity to maintain simplified accounting and calculate depreciation once a year;
• preferences have been established for them in state and municipal procurement.

The Ministry of Industry and Trade annually compiles a list of small and medium-sized businesses and sends it to the Federal Tax Service of Russia. Tax officials make adjustments to the Unified Register.

The main advantages of small business:

• the presence of a small need for initial capital;
• low costs of doing business;
• the ability to quickly respond to changes in the market;
• high turnover of equity capital;
• trend of growth of available vacancies, involvement of the population in the work process.

Advantages of medium-sized companies:

• creation of new jobs;
• greater productivity of investment;
• relatively high profitability;
• competitiveness;
• financial mobility.

Advantages of large enterprises:

• ensuring economic stability in the country;
• changes in the external business environment;
• saving production costs;
• introduction of modern technologies into business;
• expansion in world markets, etc.

In fact, for the owner of the company it does not matter what form his LLC belongs to - it is a small or medium-sized business or even a micro-enterprise. The main thing is competitiveness, stable income and low costs.

Types of small and medium-sized businesses

Entrepreneurial activity in Russia is represented by a huge variety. The purpose can be determined according to legally established criteria: field of activity, form of ownership, number of owners, use of hired personnel.

By type of activity

The division by type of activity is ambiguous. One organization can simultaneously combine several areas. The most common example is the combination of trading activities and the provision of services.

According to the form of purpose, entrepreneurship is divided into production, commercial, financial or advisory.

By type of ownership

The official division by type of ownership is as follows:

• private, that is, owned by a private individual or group of individuals;
• municipal. All assets belong to the municipal organization;
• state Activities are completely controlled by the state;
• public.

Important! We should not forget about legal restrictions on private ownership. The total participation of the state in the capital of the organization cannot exceed 25%

By number of owners

Enterprises are divided according to the number of owners into individual and collective. The difference depends on how many people are involved in the business. If the business is owned by one individual, it will be considered individual. Collective property can be shared or joint.

Attention! There is a difference between sole proprietorship and the legal form of ownership described above.

According to the degree of use of hired labor

There are two forms of using hired labor:

• If the entrepreneur carries out his activities himself and does not involve hired employees in the work.
• The staff list includes employees who carry out their activities, for example, under legally established employment contracts.

Governmental support

In this light, it is obvious that the state, being one of the beneficiaries of big business in Russia, always provides support to the necessary extent. Everyone remembers the financial crisis of 2008, when, due to macroeconomic reasons, AvtoVAZ, the pride of the domestic industry, almost went under the hammer. The authorities at that moment supported the car plant and helped it stay afloat.

Of course, the current crisis bears little resemblance to the financial tornado that swept through in 2008-2009 - different causes and different scales. However, even now the authorities are finding resources to provide state support to large companies. One large business receives partial funding from the state budget, another is given tax preferences, and a third gets some other bonuses, for example, scientific and technical ones.

The latter includes the oil production sector. Oil workers do not need money so badly, since they earn enough of it themselves. But technology is required like air. Indeed, as part of Western sanctions, our oil industry lost access to equipment for exploration and production of black gold. And here, state support for the development of large businesses in Russia can manifest itself in the organization at the state level of the development of analogues of imported technologies by various research institutes and design bureaus.

Forms of small business

There are two generally accepted organizational forms of small business. Each of them is described in legislative acts.

Organizational and legal

The responsibility of the owner of the enterprise and all its participants to external entities depends on the legal form.

The organizational and legal associations include the following:

• society;
• partner organizations;
• cooperatives;
• peasant or farm households;
• individual entrepreneurs.

Sometimes you can find joint stock companies related to small businesses. The main characteristic of this form is that the capital is divided into a certain number of shares, which have their own market value. The extent of responsibility of each founder depends on their number.

Organizational and economic

The internal regulations and its structure are the main components of the organizational and legal form of the enterprise.

The form could be as follows:

• private or business. This form is characterized by one boss;
• partnerships, that is, the participation of several equal members who invest their work not only in the activity itself, but also in management;
• corporate relations. They are most often used in large businesses, and their distinctive feature is the large number of participants, that is, shareholders.

Example of a business plan

Nowadays you can find various business plans for small businesses on the Internet. An example is a plan for opening a shooting range.

1. The main thing is to choose a room in a crowded place, ideally near shopping and entertainment complexes. The more people pass by, the greater the number of those who look into the shooting range. If the dimensions of the room suit you (the width is at least 6-7 m, and the length is about 10 m), you can safely begin, even despite the lack of repairs, by covering the walls with a camouflage net. Rent will cost up to $1000 per month.
2. You need to buy air weapons - several rifles and pistols. This will require the same amount of money, and buying bullets will cost about $50.
3. To purchase mechanical targets and thousands of paper targets is approximately $300.
4. Souvenirs for sharp shooters with the symbols of your company - about another $100.
5. Manufacturing the rack, refurbishment of the premises, taxes will require about $800.

If the number of visitors is more than 70 people per day and provided that each of them fires about 20 shots on average, the amount per month is at least $2,200. And after two months of operation, the shooting gallery will already pay for itself and begin to make a profit.

Small business is a source of income for those who create it. On the other hand, this is a way to satisfy the needs of the population for various goods and services. Therefore, the development of small business is necessary and beneficial for the entire country.

Role and significance in economics

The development of the economy largely depends on the factors of which it consists. One of the most important aspects is the development of small business, which is the most important link in the successful activities of the state.

Entrepreneurship is the most “flexible” tool that most quickly adapts to the demand of the end consumer. It is thanks to small businesses that the regional economy is developing, additional jobs are being created, and innovative technologies are being rapidly introduced.

Economic significance

An increase in retail and small wholesale trade turnover creates favorable conditions for competition in general.

In perspective

At all business forums held in 2020, including the most recent meeting of the Valdai Club, officials at various levels, experts and representatives of the business community expressed the unanimous opinion that large businesses in Russia feel confident, and from this point of view there are no negative trends observed . However, this situation may change, but this requires very strong shocks like a real war or a natural disaster on a global scale.

Within the framework of the current realities, this segment of the Russian business world is unlikely to be threatened by anything serious. As long as the authorities rely on domestic big business, corporations have nothing to worry about except solving their purely production problems. Government “effective managers” will ensure that large enterprises operate sustainably and look to the future with optimism.