Vitebsk Small Business Incubator is the largest in the country and unites over a hundred small enterprises

In many countries, small businesses, i.e., those employing up to 50 people, are the backbone of economic development. They occupy niches where large business entities cannot operate. Being more flexible in the market, they stimulate the development of competition, encouraging large companies to adopt new technologies and improve production efficiency. According to the latest data, for example, in the EU, small businesses employ about 70% of the population, and such entities account for more than half of the total turnover and added value. In our country, small business has only recently received attention and currently occupies a small share of the market. However, the trend towards an increase is visible year by year. The same applies to the interest in this segment from the state, supported by regulatory legal acts with certain preferences for small businesses. In addition, one of the forms of assistance for those starting their own business is the activity of small business incubators, established by a resolution of the Council of Ministers. There are 15 of them in the republic. We will analyze the effectiveness of this structure using the example of the Vitebsk small business incubator LLC "Legal Group "Law and Order". The director of the enterprise, Mikhail Keyzerov, answered our questions.

– Let's clarify what a small business incubator is and how it is useful for novice businessmen.

– Currently, the state is paying increasing attention to the development of small businesses. It is the driving force of our economy, so it is important to activate this link, which we are called upon to help with. The small business incubator is a state program to create conditions for the growth and development of emerging business entities. We grow businesses. Entrepreneurs come to us at the idea stage, and our task is to make this idea viable. In particular, we help incubated entities register and formalize their business, provide office or production space for gratuitous use, and then support the business by providing the necessary legal and informational services. Within 5 years, we must release a strong enterprise into the free market, which is already ready to operate independently in the economy.

– So, the main problem for those starting their own business is solved: expensive rental of premises?

– Yes, this is a truly unique practice. The state provides premises free of charge, which allows incubated entities to save money and direct the funds they would have spent on rent into business development. This is very important at the initial stage, every penny counts. According to the agreement, only utility payments need to be made. Currently, the incubator occupies 6 buildings with a total area of 12 thousand square meters.

– How long does the registration take?

– According to the legislation, it takes 1 day. We prepare all the necessary documents; you only need to submit them to the district administration. Then, within 5 days, all types of registration are completed. This means that within a week, a legal entity can start operating.

– Mikhail Tomovich, how legally savvy are those who come to you? Do they need assistance?

– In the first two years, the liquidation rate among novice entities reaches 80%, which is global statistics. They close for various reasons. But the main one is legal, financial, and accounting illiteracy, which can lead to various consequences. Therefore, we are creating conditions for growth and development, including through the provision of a range of services. Each enterprise is assigned a certified legal advisor who, if necessary, prepares orders, contracts, provides consultations, explains tax features, etc. In addition, we organize a so-called school of economic and legal literacy. After all, any novice entrepreneur must know a huge amount of material: news of legislation and economics, exchange rates, refinancing rates, goods and prices. Our economists are developing the necessary database and make weekly mailings.

– How many entities are currently “growing” in the incubator?

– The Vitebsk one is the largest in the country. In 2004, when we received the first building, there were 10 entities. Now there are 115 enterprises, about a thousand jobs. A good result, but far from the limit. After all, there are 3670 small enterprises in the economy of Vitebsk, which means that we only have 3%, which are unlikely to significantly affect the economy. In this regard, the Program for the Development and Popularization of Small Entrepreneurship in the region by the Small Business Incubator was recently approved by the Deputy Chairman of the Regional Executive Committee, Oleg Sergeevich Matskevich. According to the document, the allocation of up to 300 additional new office premises for novice entrepreneurs is planned in Vitebsk. We will be able to increase our capacity threefold and will foster up to 10% of all small businesses. Foreign experience shows that in the 1980s-1990s, countries of the big and small Asian dragon, such as Singapore, Taiwan, China, Thailand, fostered up to 20% of their economy's entities in similar incubators. Perhaps that is why they grew and developed so rapidly.

– Do you take entrepreneurs only from the regional center under your care?

– No, we have a branch in Polotsk, which currently has 28 incubation entities. Thanks to the program I mentioned earlier, another 100 additional office spaces will be allocated there. Furthermore, they are also provided in Orsha. This means that novice entrepreneurs in these cities can also take advantage of the offered preferences when creating a small enterprise.

– What sectors do the incubation entities represent?

– According to the Council of Ministers' resolution, we work with manufacturers of goods, works, and services, excluding banking, insurance, gambling, tourism, and some others. We mainly have construction organizations, advertising and information service providers, accounting firms, innovative production, IT companies, and even a laboratory. In short, it's a cross-section of practically the entire economy.

– Tell us about the prospects of the IT sector in business, or rather, about the creation of a "Silicon Valley" in Vitebsk. How is the project progressing?

– The spectrum of high technologies and developments is well-developed in our city, and many firms operate legally. However, a significant number of "IT specialists" are operating in the shadows. The "Silicon Valley" will help to legalize them, secure their work, and provide them with a volume of work. The building for it has already been allocated by a Council of Ministers' resolution, and it is located on Petrus Brovka Street. The creation of the project has been financed from the regional budget, and three construction phases have been defined. It is too early to talk about deadlines.

– Mikhail Tomovich, please advise aspiring entrepreneurs on the qualities they need to possess to succeed in business.

– You need to work hard. And remember that every person involved in small business is an individual. Because they made a decision, took a step, overcame certain difficulties, and in some cases, even themselves.

Olga Maslovskaya, "Vitebskiye vesti"