The largest state-owned companies increased the volume of purchases from small businesses in 2022 to 7 trillion rubles. This is 2.6 trillion rubles, or 1.6 times higher than a year earlier. Such data were reported in the SME Corporation. What do these figures say and what do they mean for the Russian economy, what hinders or, conversely, helps small businesses trade with large players and how the situation can be improved, say experts interviewed by Izvestia.
Experts analyzed transactions for more than 12,000 customers, 9,000 of which are in the regions. State corporations began to purchase more not only in terms of volume, but also in terms of the number of nomenclature items – 1.1 million items. This figure is twice as high as in 2021. 70% of all purchases were for industrial goods and 9% for high-tech products.
In the segment, up to 50 million rubles were purchased more medicines, up to 200 million rubles – oil products, up to 400 million rubles – products of mining and processing plants, up to 1 billion rubles – vehicles and production equipment.
Looks better than it is
The role was played by the increase in the quota for purchases from SMEs from 20 to 25%, as well as the extension of the requirement to purchase from SMEs to all state-owned companies in the Russian Federation, believes Olga Belenkaya, head of the macroeconomic analysis department of FG Finam.
— The statistics look good, given the fact that the only positive contribution to GDP dynamics last year was made by an increase in government spending, she said, but emphasizes that in relation to the total turnover of SMEs, this is not so much. Photo: Izvestia/Dmitry Korotaev
— Thus, according to the available data for 2021, the turnover of small enterprises amounted to 57 trillion rubles, medium-sized enterprises – 12 trillion rubles, – continues the interlocutor of the publication. — Thus, public procurement could account for about 10% of the total turnover of SMEs.
Also, according to Olga Belenkaya, there may be questions about the organization of procurement.
— For example, how independent SMEs that received orders from state-owned enterprises were from their customers, how real competition was in procurement, and how much information about tenders was available to a wide range of potential participants.Welcome to salaries: small businesses began to index salaries more often How much they usually increase and whether the trend will continue
Stop “playing catch-up”
expected, comments Alexander Chepurenko, Professor of the Department of Economic Sociology, Department of Sociology, Faculty of Social Sciences, National Research University Higher School of Economics.
— Firstly, small businesses, albeit to a limited extent, due to their high flexibility, can replace suppliers of goods and services that have left the Russian market. Secondly, both the experience of the pandemic and last year’s data show that the part of small business that has either government organizations or large businesses as anchor clients feels better in the face of shock changes. Accordingly, today the leaders of a number of small firms tend to work with orders from large businesses. With all the possible consequences for their business that follow from being too strongly tied to one or two of the largest customers.Photo: RIA Novosti / Kirill Kallinikov
According to Chepurenko, according to a number of monitoring studies, by the beginning of 2023, small businesses have gradually recovered from last year’s shocks.
— The share of small business owners who consider both their own results and the situation in the economy as normal increased compared to the 2nd quarter of last year.
The specialist also proposes a number of measures that would make it possible to alleviate the situation of small and medium-sized businesses.
– First. Ministries and departments should stop “playing catch-up”: who will come up with another initiative to simplify the life of small businesses. Small businesses value nothing more than stability and the immutability of the rules of the game. Second. It would be necessary to support the formation of cooperation in the marketing of agricultural products. A small farmer and owner of private household plots has no time to trade himself. Someone, and best of all, trade and purchasing cooperation, should take over the sale of its products, which, in terms of assortment and quality, do not meet the standards of retail chains, but are quite in demand by the population. Finally, the third. In the context of the departure of anchor foreign tenants, it would be important to support large companies that own shopping and shopping centers so that they can continue to operate and place small businesses on their premises. Of course, in exchange for state support, they would have to fix the deadlines for the lease and go for an extension of the average lease term.Take over: 60% of companies plan to expand their staff from April What specialists do businesses need and why is hiring more expensive
Appeal to small businesses and an increase in the purchase quota — this is a positive signal for the Russian economy, says Ekaterina Kosareva, managing partner of the VMT Consult analytical agency.
— Stable orders from large companies are the key to maintaining revenue and transactions in the short and medium term, depending on the term of the contracts. This is a guarantee that there will be no cash gaps, because in most state-owned companies, settlements are automatic and payment discipline is high. And this means no problems with working capital. Accordingly, it makes sense to think about scaling up the business, investing in your own related projects to diversify or, conversely, to increase the production of core products.Photo: Izvestiya/Kristina Kormilitsyna
According to the analyst, contracts with state-owned companies can also be considered as investments in marketing.
— If the company writes on its page that it is a stable player in the market, this is one thing. And “we are working with [a large state-owned company]” is already a completely different weight in the eyes of potential customers and definitely an argument “for” a reliable supplier.Five again: industrialists advocated the return of the state plan What do they mean by this mechanism, what are the advantages and are there any risks
Measures taken by the government allow the Russian economy to develop actively , despite the current difficult turbulent conditions, says Daniil Gonenko, Ph.D.
— The state creates demand and stimulates supply. Small and medium-sized businesses, by virtue of their ability to quickly adapt, are gradually occupying niches vacated after the departure of foreign companies, and also satisfy the growing needs of the Russian economy.
Studies conducted on the basis of the RANEPA, according to the scientist, show that enterprises whose leaders are willing to take risks and give the current price (sometimes slightly lower than the market price) win large government contracts.Photo: RIA Novosti / Ilya Naimushin
– Now there is no question of St. earnings, as it was before, but we note the qualitative growth of Russian business. Such mechanisms of interaction between business and government “kill” unnecessary intermediaries, the number of unnecessary distribution channels is reduced, resulting in a reduction in the final price of products, which has a positive effect on the economy as a whole.“We don’t have the task of simply distributing state property as quickly as possible” Alexey Moiseev, Deputy Minister of Finance, on the regulator of the cryptocurrency market, the prospects for privatization and the conditions for the formation of a retail investor market
The expert considers the spread of this trend to the regions to be a particularly positive result.
— According to our research and forecasts, the number of purchases by state-owned companies in the regions from SMEs will only grow. By stimulating business, state-owned companies put some entrepreneurs on the register of sole suppliers, which only encourages small businesses to work more actively and gives them more confidence in the future.
Such a scheme of interaction between business and government creates additional jobs, the expert assures.
— Thus, in recent months, the demand has grown not only for qualified specialists in the production sector, but also for specialists in the economic and financial sectors, which is logical, given the qualitative development of Russian business. Of course, the growth and development of SMEs also increases tax revenues to the budget. By fulfilling government contracts, it is easier for SMEs to compete with retailers and other large companies, it is easier to get loans under government contracts, and to protect their rights and interests. In general, the number of problems that business faced 3-4 years ago and even the last six months has begun to decrease, concludes Daniil Gonenko.Photo: Izvestiya/Pavel Bednyakov
We count on ourselves
First of all, the increase in the volume of purchases from small and medium-sized businesses by state corporations is caused by an increase in the quota of mandatory purchases from this category of companies up to 25% last year, explains the expert of IK “IVA Partners” Artem Klyukin.
— Growth was additionally supported by the ability to fill the niches that were freed up with the withdrawal of Western companies from the Russian market and the ban on the supply of a number of types of products that are now imported under parallel import schemes. This provides support to small and medium-sized businesses and stimulates the development of their own production.Private initiative: 10 trillion rubles are planned to be attracted to the Russian economy The government has given eight years for this
At the same time, the main problem for SMEs and the entire economy as a whole now is the difficulty in attracting investments.
– Western capital markets are closed for our companies, so we have to rely only on Russian money. In order to encourage Russians to invest in Russian companies, it is desirable to reduce the taxation of income received from such investments, suggests Artem Klyukin.