How to start a business during a crisis, and what projects are emerging in the Vitebsk region by novice entrepreneurs
Quantity or Quality?
The economic problems of recent years have hit the private sector hard, especially small businesses and individual entrepreneurs. Statistics show that last year, compared to 2014, the number of small and medium-sized enterprises in Belarus decreased by almost 7 thousand (a decrease of 5.9%), and the number of individual entrepreneurs (excluding employees) decreased by 8 thousand (240.8 thousand).
Negative trends continue this year, including in the Vitebsk region. In July, compared to the first half of 2015, the number of private organizations and enterprises in the region decreased by 6.4%, and individual entrepreneurs by almost 10%.
At the same time, according to the Ministry of Economy, the contribution of small and medium-sized enterprises to the economy of Belarus today is 28%, ten years ago it was 16%, and in the plans for the next five-year period, this figure is to be increased to 40%.
Director of the Department for Entrepreneurship of the Ministry Petr Arushanyants believes thatsmall business is quite flexible and in the conditions of crisis it simply "shrinks and freezes in anticipation", and explains the reduction in the number of individual entrepreneurs by their transition to the status of employees (since the beginning of the year, there have been 7 thousand more employees for entrepreneurs). At the same time, according to the specialist, the main deterrents to business development are the lack of stability and the impossibility of planning,high cost of loans and tax burden, excessive regulation of business, insufficient access to real estate.
A similar point of view is shared by co-chairman of the Republican Confederation of Entrepreneurs Viktor Margelov, who recently stated that the main blow to small businesses was dealt by the general economic situation: the population's income decreased, killing consumer demand.
However, entrepreneurs are business-minded and proactive people, which means they are not used to giving up. Some are indeed waiting out difficult times, while others, on the contrary, are boldly starting.
From unemployed to businessmen
People with the status of unemployed can apply for a one-time non-repayable subsidy to start a business. Depending on the social significance of the business project, the type of activity, innovation, and the place of its implementation (assistance is greater in rural areas and small towns), state support ranges from 11 to 20 average subsistence minimums (from 1930 to 3510 thousand rubles).
Over 20 years of this program, almost 2 thousand novice entrepreneurs have received assistance in Vitebsk alone. In nine months, 32 novice businessmen received state support in the regional center. Being unemployed, you can count on a subsidy if there is no suitable vacancy for a month, and after receiving it, you must engage in entrepreneurial activity for at least six months (and thus pay taxes). A mandatory business plan and an accurate report on the use of the funds received are required.
– Of course, it is unlikely that you can start any business from scratch solely on the subsidy, – says Olga Dozortseva, chief specialist of the Department of Labor, Employment and Social Protection of the Vitebsk City Executive Committee. – But it is still good support for a novice entrepreneur. People who have really calculated everything and are ready to face the difficulties of growth turn to us. However, only about a third of newcomers become successful. These are the laws of the market, entrepreneurship is not without risk. Some still think that business is buying clothes in Moscow and reselling them onVitebsk markets. This is a long-gone stage and a bad way to start a business. The trouble with many potential entrepreneurs is that they do not thoroughly calculate the development of their business, and, as practice shows, this is the key to success. As a rule, unemployed people receiving subsidies find themselves in various types of activities: repairing and sewing items, doing finishing work, freight transportation, retail trade, hairdressing services, tutoring, working as taxi drivers, and so on. Among the relatively new business ideas are industrial mountaineering, a massage parlor, instant engraving, and selling flowers with home delivery. "To achieve success in business, you need to take on what you are truly a professional in and be a fan of your work," is convinced Olga Dozortseva. "But many novice entrepreneurs critically lack knowledge of tax legislation, record-keeping, and so on. We advise them free of charge as much as we can." A great help for beginners is the **Vitebsk incubator of small business "Law Firm 'Law and Order'"**, which over 16 years has nurtured more than 100 successful enterprises employing about a thousand people. The incubator currently has eight buildings with an area of 24 thousand square meters, housing 175 business entities. All of them not only receive business management consultations but are also exempt from rental payments for five years, which, considering the prices for other people's square meters, is a significant support. "Young, initiative-driven people lack experience, but this is their weakness and strength, on the other hand," says the incubator's director Mikhail Keyzerov. "They don't know much, but they are ready to fight for their ideas and projects. Young people today are creative, knowledgeable, and ambitious. Talented IT specialists start their own businesses right after their first year of university. Given that we are essentially in an information revolution, the future lies with innovative technologies. Although there is also work in the service sector, the main thing is to find your niche. For example, projects for dog walking and flower delivery with various messages are currently being successfully implemented,"anticafes where you can spend your free time playing games, house and office cleaning, car washing, "Handyman" service, and so on.
Business coach, director of the entrepreneurship support and technology transfer center of ODO "Vitebsk Business Center" Leonid Shur said that despite the economic difficulties in the country, about a hundred people wishing to start their own business seek free consultations every month. Since the beginning of the year, more than 1300 people from different regions have participated in training seminars on various aspects of doing business.
– A crisis is a great opportunity for business renewal, searching for new directions and opportunities, – Leonid Shur is convinced. – There are indeed many business ideas: from mobile applications to creative agro-estates. But to be successful, you need to learn all your life. Know that useful connections are social capital. Money is not necessary for starting, but brains are. I am writing a book about this. Bureaucracy hinders business development. Everything is too long, expensive, and complicated.
The eyes fear, but the hands do
29-year-old Vitebsk resident Dmitry Vasilchuk opened a massage parlor last year with the help of a subsidy for the unemployed. It is located in the city center in a small but very cozy room on the ground floor of a residential building. Relaxing music, the smell of incense, thoughtful interior design – it is immediately clear that Dmitry approached his business competently. According to the entrepreneur, there are enough clients. The workplace created with his own hands allows him to earn an average monthly salary for the country.
– After graduating from the College of Arts, I couldn't find a job in my specialty for a long time, making ends meet with odd jobs, – says Dmitry. – Since childhood, I massaged my father, who often had back pain, and relatives and friends turned to me. To gain professional skills, I completed a correspondence course at the Faculty of Physical Education and Sports, specializing in "Rehabilitation and Massage." I found out about state support by chance. Employment service specialists helped me a lot with advice. The money was enough to buy furniture and an acoustic system. The most difficult thing was to find a suitable premises.
требованиям санэпидемстанции и по стоимости аренды. Но все, к счастью, получилось. Главное - не лениться, стучаться во все двери, узнавать, спрашивать. И, конечно, четко знать, что ты хочешь от бизнеса, любить свое дело и много работать. Глаза боятся, а руки делают.Ежемесячная арифметика бизнеса Дмитрия такова: единый налог – 75 рублей, аренда – 350, платежи в ФСЗН – около 80, плюс 10-20 рублей на расходные материалы. Как видим, самая большая статья расходов – аренда.
В мечтах у предпринимателя расширение дела: установка нескольких массажных столов, кедровой бочки и другого оборудования.
Дарья Романова-Сосновская из Витебска получила субсидию на открытие студии танцев лишь в июне, и ее бизнес только в начале пути, но, судя по оптимизму и активности 28-летней предпринимательницы, у нее все получится.
Девушка по образованию биолог-эколог несколько лет работала по специальности. Но увлечение танцами и желание развиваться сыграли свою роль – Дарья заочно закончила Институт культуры по специализации «Хореография» и круто изменила жизнь. Уже в статусе безработной взяла субсидию, о которой случайно узнала от знакомой. Госпомощь покрыла около 70% расходов, удалось купить мебель, инвентарь, музыкальную аппаратуру. Хореограф арендует помещение в одной из средних школ и учит детей и взрослых танцам.
– Чтобы начать свое дело, нужно иметь здоровое тщеславие и быть настоящим профессионалом, - подчеркивает Дарья. – А я всегда мечтала учить детей танцам. Мне очень повезло: квалифицированные специалисты многое объяснили. С арендой помогли в городском отделе образования, где предложили список школ со свободными помещениями, с документами – в службе занятости.
У Дарьи в месяц уходит чуть более 100 рублей на единый налог, но дороже всего – аренда.
– Недавно была в гостях в Австрии. Когда мои знакомые узнали, что дешевой у нас считается аренда в 3 евро за квадрат, они были очень удивлены. Это даже для Евросоюза дорого!, – рассказывает Дарья. – Впрочем, для меня главное, что я занимаюсь любимым делом и готова развиваться. В бизнесе нужно делать ставку на качество предоставляемыхservices. The plans include expanding the studio: hiring instructor-choreographers, broadening the range of disciplines.
Cold Calculation and a Warm Heart
Despite the existing difficulties, entrepreneurs are ready to develop. And the state is taking a step towards such people.
Yulia Medvedeva, Head of the Department of Foreign Economic Activity and Entrepreneurship of the Vitebsk City Executive Committee's Economics Department, noted that Vitebsk, like the region as a whole, has an effective infrastructure for supporting private initiative. This includes the regional marketing center, the small business incubator, the business center in Vitebsk, an outsourcing accounting company in Polotsk, and entrepreneurship support centers in Polotsk, Novopolotsk, and Orsha.
– There are many examples of successful businesses, – emphasizes Yulia Medvedeva. – State bodies are open to private initiative. However, potential entrepreneurs must understand exactly what they want and accurately calculate their capabilities, aligning them with their aspirations. Entrepreneurship is not easy work, where both cold calculation and a warm heart are important.
Alexander Kutynko, "Vitebskiye Vesti". Photos from open sources.