Unemployed individuals in Vitebsk are more likely to start businesses in the service sector after receiving state subsidies
In Vitebsk, after receiving state subsidies, unemployed individuals most often start businesses in the service sector, as reported by Olga Dozortseva, chief specialist of the city executive committee's department for labor, employment, and social protection.
"In 2018, over a 9-month period, the department approved subsidies for 32 unemployed individuals (compared to 44 for the entire year 2017), with 13 of them for craft activities. The average age of an unemployed person starting a business or engaging in crafts is 37 years. The most popular areas of activity include hairdressing, accounting services, and repair and tailoring of garments. Among craftspeople, popular activities include patchwork, hand-knitted items, creating benches and animal houses, candle making, and crafting with straw and willow. Recently, there has been a shift among individual entrepreneurs, including those who received subsidies, from trade towards the service sector," noted Olga Dozortseva.
This year, among those starting their own businesses, many are individuals who have returned from working abroad in Russia, as well as women after maternity leave. Almost all of them have professional qualifications, so seamstresses and technologists are opening tailoring and repair ateliers, while those with experience in the construction industry are starting renovation work. Among the entrepreneurial activities organized by the unemployed, dance schools and fitness centers are emerging, and hairdressing salons and beauty parlors remain in demand.
"There is an example where a wife was involved in nail services and received a subsidy for it. Her husband, who worked in customs, opened a business in May 2018 for the production of perfumes and cosmetics, including nail polish. His business is doing well, despite such a drastic change in activity," said the specialist.
Many unemployed individuals have elevated their hobbies to the status of craft activities. For instance, a young resident of Vitebsk, a group 1 disabled person, who lost his sight, did not give up and started weaving items from so-called paper straw. "He is doing a great job with it; such goods are desirable to buy. He participated in an exhibition fair during the 'Slavianski Bazaar' event.
"bazaar". Now the young man plans to master the profession of a massage therapist," noted Olga Dozortseva.The Department of Labor, Employment, and Social Protection of the Vitebsk City Executive Committee holds free seminars "Business Management Lessons" to develop the economic activity of the population and stimulate legal business operations. Specialists from various departments and services explain the procedures for registering and carrying out entrepreneurial or craft activities, and answer participants' questions. Seminars on other topics will be held in October and November.
"We assist in preparing documents for financial support, refer to the "Business Plan Fundamentals" courses, provide methodological assistance, accompanying individuals from the moment they obtain unemployed status until they register as an individual entrepreneur or a company. All issues related to obtaining state financial support are clarified. Training in our courses will help to form a concept for a future business and create a business plan in a short period," the interlocutor explained.
Olga Dozortseva pointed out that subsidies cannot be received repeatedly, so it is necessary to try to invest the received funds as effectively as possible. And do not forget that everyone bears all financial and moral responsibility for the result. This refers not only to the need to report on the use of the subsidy in accordance with the business plan but also to the obligation to work as an individual entrepreneur or a private unitary enterprise for more than 6 months within a year from the date of registration, naturally, with the payment of taxes for this type of activity. "Thanks to decrees No. 337 "On the Regulation of the Activities of Individuals," No. 364 "On the Implementation of Craft Activities by Individuals," and decree No. 7 "On the Development of Entrepreneurship," the state has created unprecedented conditions and opportunities for starting one's own business. Bureaucratic barriers have been removed, and some procedures have been simplified," the specialist concluded.