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More attention - small and medium
The Chukotka Development Fund summed up the results of five years of its work and shared plans for the future
The Far North is harsh to everyone. He tests the strength of not only people, but also their hopes, ideas, business, and management decisions. The fact that in other, more comfortable places occurs and develops as if by itself, here - requires constant support. This is well understood by those whose goal is to find and grow promising new projects and initiatives even here, in permafrost. And to achieve that the investment climate of Chukotka becomes (despite its usual weather) - warm and favorable. Recently, one of such non-profit organizations, the Chukotka Development Fund, established under the Government of the Autonomous Okrug, celebrated its fifth anniversary. The results of his efforts clearly demonstrate that even during this not very long period quite tangible results can be achieved. And if you evaluate the effectiveness of the work, then its calendar experience will quite rightly be multiplied by the "northern coefficient".
Directing and supporting small and medium-sized businesses in the region, creating prospects for it and attracting investors is the main task of the Fund. The scope of his activities is constantly expanding. In 2016, he helped TOP residents get government support. Now - it has become not only a regional development institution, but also a center for supporting entrepreneurship and a regional guarantee organization. On behalf of the regional government, the Chukotka Development Fund since 2018 of the year is a single management body for organizations supporting the infrastructure for small and medium-sized enterprises in the region. In practice, this means that businessmen come here to discuss the project at an early stage, get professional advice and draw up an action plan. Understand what pitfalls may arise, and correctly pass them. Gain the necessary knowledge during training and business schools. Find lenders and investors. And safely develop further. The quality of such preparatory work is already indicated by the fact that 95% of those who asked for help in writing business plans will soon realize their plans in the form of investment projects. And, of course, the number of such appeals is growing every year. Last year there were more by 77% than in 2017. Now that the Fund has become the organizer of several regional business forums and has once again taken an active part in the WEF, its employees are preparing for a significant increase in workload. But this is only welcome.
The most promising projects are also provided with financial support - the fund helps to receive grants and subsidies for them, acts as a guarantor for the business on loans from commercial banks and leasing agreements. Just the other day, by the way, such a loan in the Asia-Pacific Bank was received by individual entrepreneur Valentina Psel from the village of Lawrence. They gave her 2 million rubles, for 1,4 million - the Fund vouched. The business project of Valentina Alekseevna (food product sales) was the fourteenth of the Fund supported only this year. In total, over 5 years, guarantee of a loan was provided by 24 to entrepreneurs. The fund has the opportunity to deposit 70% of a debt obligation for a novice businessman who does not have enough of his own funds or property to process a pledge. The rate for such a guarantee for a client is 0,5% per annum of the contract amount. Much more profitable than dealing directly with the bank. Moreover, among the partners of the Fund are leading players in the credit market of the Far East. As already mentioned ATB, and Sberbank, Russian Agricultural Bank, SME Bank and others.
This is one of the concrete examples of how work with small and medium businesses is built in Chukotka. Here, each project is individually approached and sought to help so that entrepreneurs find it most profitable and convenient. It is very important that the Fund provides comprehensive information about all potential opportunities to start a business and the intricacies of existing benefits and preferences. Including those that are included in the development programs of the Far East and are intended for residents of ASEZs and SPW. They are trying to translate the “information field” in Chukotka into electronic form and thereby facilitate all communication processes between businessmen, investors, authorities and expert organizations. In Anadyr, within the framework of the national project “Small and Medium-sized Enterprises and Supporting Individual Entrepreneurial Initiatives”, with the support of the Department of Finance, Economics and Property Relations of the Chukotka Autonomous Okrug and the Ministry of Economic Development of Russia, a single center “My Business” and an electronic portal are being created, many services will be available remotely.
Without advertising and information, a business cannot be launched or promoted. Therefore, the Fund pays great attention to ensuring that as many potential clients and investors as possible learn about Chukchi entrepreneurs. And businessmen themselves - were able to discuss in detail everything that interests them. The delegation of the Fund traditionally took part in the Eastern Economic Forum. Entrepreneurs from Chukotka held discussions on the problems of electronic commerce, trade and services in digital formats, on the participation of young people in creating an urban environment, on topical issues of professional training for “future cadres”, on the prospects for special economic regimes in the Far Eastern Federal District and much more. The fund presented a number of interesting investment projects - from plans to develop a copper deposit in the Baim ore zone to the construction of a cable-and-passenger railway in Anadyr, which can give a serious impetus to the development of the tourist cluster in Chukotka. Immediately after the presentations, four potential investors came to the region. A serious professional assistance of the Fund in the preparation of all other presentation venues in the WEF business area was specially thanked by the TASS news agency. Such recognition is especially valuable.
Within the framework of the WEF, the pavilion of the Chukotka Autonomous Okrug worked at the exhibition-fair “Streets of the Far East”, where the works of masters of national art crafts, products of reindeer husbandry, hunting and fishing of northern peoples, environmentally friendly products were presented in all their diversity. Representatives of the Autonomous Okrug made many useful contacts and presented the best samples of their products. Business ties were established not only by craftsmen and tradesmen. At the VEF site, the Chukotka Development Fund signed an agreement with the Industrial Cluster of the Republic of Tatarstan on cooperation in the field of entrepreneurship support. And the head of the Fund, Olga Plotnikova, and the chairman of the board of the engineering cluster of Tatarstan, Sergey Mayorov, substantively discussed new initiatives related to updating the fleet of trucks in the district on favorable terms, modern technologies for collecting and processing waste and recycling, and modernizing special equipment. Olga Plotnikova called the agreement “a significant step for productive work in the future.” The head of the Fund is convinced that now there are more and more opportunities for small businesses. It is important that entrepreneurs themselves see these prospects, and any problems can be quickly resolved by the joint efforts of state authorities, development institutions and market participants themselves. “We are open for feedback and for constructive planning of further work,” explains the director of the Fund. Many activities are implemented by the Fund as part of the national project “Small and Medium-Sized Enterprises and the Support of Individual Entrepreneurship Initiatives” with the support of the Department of Finance, Economics and Property Relations of the Chukotka Autonomous Region, as well as the Ministry of Economic Development of the Russian Federation.
“The prospects for the development of Chukotka require not only strength and knowledge, but also the ability to act in a non-standard environment,” says Olga Plotnikova. - For example, we used public-private partnership mechanisms long before this term was legally enshrined. We started with the “manual management” of investment projects - and, if necessary, are quite capable of doing it now. But still, the main result of our work is that we were able to debug and make optimal the scheme of administrative interaction at all levels on which the promotion of new projects depends. And - as a result - the rise of the region’s economy, the growth of GRP, the replenishment of the budget through tax deductions, the creation of new jobs. There is a constant exchange of information with relevant departments, the Fund responds to each application promptly and competently. It is important not to lose the already gained pace, to improve all the mechanisms that help to achieve the result.