Press Release, August 21, 2013

A round table on the problems of the small business and its development  perspectives after the election of a new Moscow Mayor “Small business goes to the Moscow Mayoral elections” was conducted at International University, Moscow, on August 21.

YABLOKO leader Sergei Mitrokhin was the only candidate for Moscow Mayor, who was present at the meeting. The temporary acting Mayor Sergei Sobyanin, Mikhail Degtyaryov (LDPR), Nikolai Levichev (Just Russia) ignored the event, Alexei Navalny (RPR-PARNAS) and Ivan Melnikov sent their representatives.

Candidate for Moscow Mayor Sergei Mitrokhin

Sergei Mitrokhin opened the event. He said that his slogan “I will return Moscow to the Muscovites” directly concerns the small business as it suffered from Sobyanin’s new team in the first place. It started with the mopping-up of stalls, kiosks and stands. “A lot of work places, the right and freedom to do business, the real estate items which they rented were taken away from the entrepreneurs”. YABLOKO leader told that at the request of the residents he stopped the demolition of a grocery store in the Altufyevo district and about his inspection at the Vikhino market. According to Sergei Mitrokhin, Sobyanin mops up markets to do public relations on the struggle against illegal immigrants, but the residents suffer from it as buying the products at a market is cheaper and more profitable.

Another problem of small business is corruption. “We know how the tenders for the city’s order are placed. Small business just cannot squeeze into it”, said Mitrokhin. He also said that the role of the small business in Moscow is a lot smaller than it could be. “Small business is viewed as an interference. Mercenary economic interests stay behind it:  monopolistic trading networks and supermarket which are easy to deal with and get rewards from them. The absence of small business is in the interests of these monopolies”, said the candidate for Moscow Mayor Mitrokhin.

Deputy head of International University’s department Anna Anfimova, chair of the All-Russian movement “For Fair Market” Ilya Khandrikov, compere of the meeting Vladimir Maslakov

“The antimonopoly policy, competition and the support in the  other spheres are vital”, said Ilya Khandrikov,  the organiser of the meeting, chair of the All-Russian movement “For Fair Market”.

The participants of the round table discussed the problems of the lease and selling the premises for the entrepreneurs. According to Sergei Mitrokhin, the period of redemption of the non-residential premises, which the entrepreneurs rent, should be increased. “The city should get rid of unprofitable premises, they should be handed to the small business. The lease is a hook and a stranglehold for the small business”, said Mitrokhin.

The entrepreneurs, who were present at the meeting, told about the problems that they face. Nadejda  Baranova suffered from corruption of the officials, who didn’t allow her business to develop. Larisa Pak, who opened a cafe, became a victim of racket. Tatiana Vasilkova, the establisher of  a learning clubs for children network, told about the disproportional material costs which accompany the business and about financing problems.

Ilya Khandrikov believes that the entrepreneurs should consolidate. “If we want our business to be developed, then we should create a system of entrepreneurs’ communities which should  assume responsibility for economy management and solve the following issues: filling the market with goods and services, protecting the business as a class, providing  qualitative goods, providing labour force”.

Deputy Chair of the Moscow branch of YABLOKO Galina Mikhaleva, Candidate for Moscow Mayor Sergei Mitrokhin, an individual entrepreneur Alexander Simakov

The participants of the round table came to the conclusion that one of the main problems of the small business development is the absence of the dialogue between the authorities and entrepreneurs. They are the two structures that exist separately. Sergei Mitrokhin pays special attention to this problem in his electoral programme. He believes there should be many platforms where the authority and small business will be able to discuss the legislation and Moscow’s government’s regulation with the assistance of the experts and lawyers. According to Mitrokhin, such organisations should receive part of the state responsibility and be involved in the active organisation of the city’s order placement.

Mitrokhin said that there are nearly no representatives of the small business in the housing and public utilities sphere, though there should be. In his programme Mitrokhin proposes to close the local housing maintenance offices and delegate their functions to the local government, which will solve this issue openly and organise the tenders for the placement of the city’s order which will lead to the dramatic increase of the small business fraction in the distribution of the city’s order. Mitrokhin also said that one of the points of his programme is the abolition of the Moscow’s government’s regulation on the out-of court demolition of the non-stationary retail facilities. Sergei Mitrokhin believes that a lot depends on the Moscow Mayor. He can improve the regulatory environment significantly, thus improving the business climate in the city.

In the conclusion of the meeting the entrepreneurs gave their advice to the candidates for Moscow Mayor. Alexander Korshunov, vice-president of Moscow’s entrepreneurs association, said that he would like to see the Mayor that wouldn’t promote himself on every TV channel, but would roll up his sleeves and set to work and give the opportunity to work to the others. Stanislav Minayev, chair of the public organisation “Small Business Entrepreneurs”, believes that the new Mayor should stress the advantage of the small business over the big business. Tatyana Vasilkova asked to reconsider the charging scheme and return the 14 percent payroll tax rate, now it is 30 percent. The entrepreneur Svetlana Kirnarskaya recommended to pay attention to the young entrepreneurs, who are being enticed abroad. A self-employed entrepreneur Alexander Simakov proposed to find a mechanism which will help the entrepreneurs, who suffered from the actions of the present Mayor.

Vladimir Maskalov, a professor at International University, the compere of the event, concluded:” It’s important for the business that at any change in the power structure the improvements took place”.