Issue 16

ERENET Profile Vol. IV, No. 4.
www.erenet.org
Veronika PUTILINA
PhD in Economic
The Department of State Regulation in the Economy of the Ministry of Economic Development
Russian Federation
E-mail: Putilina@economy.gov.ru
THE IMPACT OF THE GLOBAL FINANCIAL CRISIS
ON SMALL AND MEDIUM ENTERPRISES IN RUSSIA
Undoubtedly, small and medium enterprises (SMEs) are the main sector of the economy and their
development assists to solving not only social problems but also indicate the economic growth.
Over the past few years has been a significant growth of the Russian economy. Since the year 2004 up
to 2008 the actual growth of Russia’s GDP was 24% (in prices of the year 2007). SME’s also make a
contribution to this growth. The average estimated contribution of SME’s to GDP is of 17.5%. The growth of
the overall amount of SMEs in Russia from the year 2004 to year 2007 contributed 20%. The estimated by
official statistics growth of SME’s in Russia is about 15% compared to year 2007 (more than 1.2 million
SMEs).
Nevertheless the Global financial crisis seriously affected the Russian economy.
Beginning from November 2008 to February 2009 a recession in the economic system of Russia took
place. From the beginning of the year 2009 the GDP of Russia reduced by 8%. The reduction of the GDP in
the 1st quarter of 2009 was 7%. The prices for oil and other raw materials reduction seriously affected the
Russian economy. From the second part of the year 2008 oil prices declined up to 70%, on metals – up to
45%. Declined the outer demand on traditional Russia-exported goods. Combined with the prices reduction
this led to the further reduction of Russian export by 35% (from June to December 2008).
127%
122%
117%
112%
107%
102%
97%
2004 2005 2006 2007
GDP Growth
MSE Quantity Growth
Another crisis side-effect is the actual refusal to refinance the outer debts of Russian banks and
corporations. Over the past 3 years the overall outer debt of Russian banks and corporations raised from 175
to nearly USD 500 bn.
So there are main problems which prevent the development of SME’s in Russia in circumstances of
Global financial crisis (the figures are taken from the report of the Russian non-commercial SME rights
organization “OPORA RUSSIA”):
Demand reduction - about 60% of the monitored small businessmen define the reduction of demand
on produced goods or services. And 23% of businessmen define it as a serious problem.
Money deficit - 70% of the monitored SME’s say they faced real difficulties with getting loans.
Weakening of national currency and inflation - prices growth is a problem for 65% of SME‘s.
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