Petr Prokopovich: Our task is to ensure economic growth and improve people's well-being, regardless of external factors

A meeting of the Council for the Development of Entrepreneurship in the Republic of Belarus was held in Vitebsk. Its head, Petr Prokopovich, assessed the contribution of the private sector of the Dvina region to the regional economy. The council's meetings, which include leading businessmen of the country and representatives of business communities, are organized quarterly. Their main goal is to discuss the situation in the private sector, identify problems and propose solutions, i.e., essentially, to develop recommendations for the development and comprehensive state support of economic entities of non-state ownership. There can be many topics for discussion. One of them, which the meeting in Vitebsk was dedicated to, is the introduction of modern forms of production management, which is a prerequisite for effective enterprise operation, and the specifics of the functioning of holdings and industrial clusters.

The discussion began at the enterprise of one of the council members – General Director of LLC "Management Company Holding "Belorusskaya Kozhevenno-Obuvnaya Kompaniya "Marko" Nikolay Martynov, where guests familiarized themselves with the organization of production and sales of footwear and leather goods. Currently, about 5,000 people work at "Marko". At the moment, footwear for upcoming seasons is produced here, meaning it is too early to be sent to stores, and it is stored in warehouses. In fact, such technological reserves constitute about 50% of the warehouse stocks of the Vitebsk region. By the end of the year, Nikolay Vasilievich expects to launch a logistics center, which is currently under construction near Vitebsk. This will significantly simplify the process of supplying goods to the foreign market. Plus, additional warehouse space, which is currently lacking on the enterprise's premises, and providing it to other footwear manufacturers. Vitebsk is close to the main sales market – Russia, which means it is logistically advantageous.

Petr Prokopovich was interested in the share of "Marko" on the domestic market, the export situation, and the price segment of the footwear offered to consumers. By the way, today the holding company occupies 30% of the country's entire footwear market, and growth is projected. Thus, branded sales have almost doubled recently, partly due to various promotions. However, exports this year, as expected, decreased due to the fall in the Russian ruble exchange rate against the dollar. But, according to Nikolay Martynov, there are prospects, because if the trade markup on footwear in the domestic market averages 30-35%, then in the Russian market it is 70-100%.

In general, "Marko" is an example of profitable production, which is currently observed in the private sector, unlike the public sector. At the same time, such taxpayers, valuable for the region's economy, also have problems. Thus, in 2016-2017, the holding company is to be supplemented with the capacities of a fur combine, after preliminary reconstruction and modernization, which will increase production volumes to 5 million pairs per year and allow for the processing of raw furs and pelts, which in turn will stimulate the development of sheep and rabbit farming. However, a problem arose with the financing of the project, and it has been under consideration for a year. Petr Petrovich promised that the council would take this issue under its control and assured that a compromise would be found together.

In addition to “Marko”, the council members familiarized themselves with the organization of production and sales of truck-mounted aerial platforms at the private enterprise “Vitstroytekmash”, as well as water purification equipment at the UP “Polimerkonstruktsiya”. And during the plenary session, the Deputy Chairman of the regional executive committee Oleg Matskevich spoke about the role and place of private business in the economy of the Vitebsk region. Also, businessmen, taking into account what they saw, discussed the implementation of modern forms of production organization as one of the factors for increasing business competitiveness.

– We must be competitive in the foreign market in all areas, including production management. Therefore, today most large private enterprises are working on this issue, – noted Petr Petrovich. – But we must not forget about the Belarusian market. Our task is to ensure economic growth and improve people's well-being, regardless of external factors. We cannot influence external factors, but we can achieve good results by increasing domestic demand and supply, and the share of Belarusian goods in the domestic market.

In addition, during the meeting, the draft program for the socio-economic development of the country for 2016-2020 was discussed. According to business representatives, the document requires refinement. The council members intend to submit their comments and proposals to the Ministry of Economy aimed at increasing the efficiency of the economic sector.

Olga Maslovskaya, "Vitebskiye vesti"