In the previous years the  dynamics of development of small business in the Republic of Buryatia testifies to increase of the contribution of this sector in the economy of the republic. In the territory of the republic by January 1, 2005,  3232 small enterprises were working, i.e. 3,3 enterprises per 1 thousand inhabitants.

39,9 % of small enterprises carried out activity in trade and public catering in 2004. The share of the enterprises in industry and building was significant, 17,4 % and 16,1 % correspondingly.

Small enterprises provided job for 23,6 thousand people on a constant basis, i.e. 6,0 % from the number of  people  occupied in the  economy of the republic, and also 1,1 thousand people - part-time workers and workers employed due to contracts.

The big contribution to employment of the population is brought by individual businessmen, the number of which is about 20 thousand people, about 51,0 thousand people work  due to contracts concluded with them. The common employment in small business of the republic in 2004 was about 94,3 th. people or 23,6 % from the number of the employed in the economy of the republic.

Dynamics of development of small enterprises

Small business brings its contribution not only in the employment of the population, but also in the whole macroeconomic parameters of the  republic. The share of small business in GRP is over 14 %, it accounts 16% of tax incomes in the budgets of all levels. The volume of production and services  made by small enterprises has increased by 43,9% in 2004 in comparison with the year of 2003.

According to the all-Russian research « Conditions and factors of development of small business in the regions of the Russian Federation », carried out by  the all-Russian public organization of small and average business « SUPPORT of RUSSIA » together with VTsIOM, in an integrated rating of regions on factors of business including financial condition, property resources, support of small business by authorities etc., the Republic of Buryatia occupies the 18-th place.

Financial -credit support of subjects of small business.

The main problem of businessmen of the Republic of Buryatia is receiving financial resources for development of business.

The government of the republic adopted a number of measures to solve this problem. According to the art. 7 of the Federal law « About state support of small business in the Russian Federation » after14.06.1995 ? 88-FL and art.5 of the Law of the Republic of Buryatia « About state support of small business in the Republic of Buryatia » after 23.11.1995 ? 225-I, since 1999  state support of development of small business in the  republic is carried out on the basis of republican programs.

For this period were realized four « Programs of the state support and development of small business in the Republic of Buryatia »: authorized by decisions of Government RB on 27.02.1997 ? 58, on 12.05.99 ? 177, on 10.01.01 ? 14 and on 13.03.2003 ? 88. Actions for the state support of small business in 2005 have been included in the Program of actions of the Government of the Republic of Buryatia, authorized by the decision of the Government of the Republic of Buryatia after 24.01.2005Ö. ? 10.

Financing of actions for the state support of small business from the budget of the Republic of Buryatia in the period from 2003 till 2005 (11 months.)

1	Actions	2003, th. roubles			2004, th. roubles			11 months.2005,  th.roubles
		Plan-ned	Practi-cally alloca-ted	The sum on one SE	Plan- ned by the budget	Practi-cally alloca-ted	The sum on one SE	Plan-  ned by the  budget	Practi-cally alloca-ted	The sum on one SE
	Financing of actions of state support of small business, including:	267,2	267,2	0,10	1500,0	1500,0	0,46	32350	32350	9,95
1	Financial-credit and property support	10,0	10,0					27000,0	27000,0
2	Elimination of administrative barriers	197,0	197,0
3	Formation of favorable public opinion about business	58,0	58,0		156,0	156,0
5	Information, educational, scientific - methodical and personnel support.	2,2	2,2		1245,7	1245,7		350,0	350,0
6	Development of republican sub- programs in prior directions				98,3	98,3
7	Development of  infrastructure of support of small business (creation of a republican business - incubator)							5000,0	5000,0

Nowadays, the Program of state support to small business in the republic of Buryatia for the period 2006-2007, has been worked out and is passing the coordination,  for financing measures of this program it is planned to allocate from the republican budget 56,19 mln. roubles, including, in 2006 - 29,94 mln. roubles, in 2007 - 26,25 mln. roubles.

According to the Decree of the Government of the Republic of Buryatia « About state support of investment activity in the Republic of Buryatia » after 17.04.2003 ? 147 the state support of small enterprises is stipulated due to means of the republican budget for realization of investment projects, which passed the competitive selection in volume of 15 % from the sum of budgetary appropriations and volume of the state guarantees of the Republic of Buryatia.

The state support of investment activity of small enterprises is carried out in the form:

- Granting state guarantees in providing return of means involved to investments to the credit organizations;

- Granting budgetary credit for realization of investment projects, on returnable and paid bases;

- Realization of compensation payments of a part of payment for using credits of the commercial banks given for realization of investment projects, on returnable and paid bases;

- Granting subsidies under the conditions of financing investment projects on shares.

Financing actions on the state support of investment activity from the budget of the Republic of Buryatia in 2003 - 2005 (11 months)

1	Actions	2003 th. roubles			2004, th. roubles.			11 months2005, th. roubles
		Plan- ned by  the budget	Actu- ally alloca-ted	The sum on one SE	Planned  by the bud-get	Actually allocated	The sum on one SE	Plan- ned  by the budget	Actually allocated	The sum on one SE
	Volumes of the financial assets directed to the state support of investment activity, including:	14946,6	12427,5	4,24	1110	591,0	0,18	1297,5	208,0	0,06
1.	Financing of highly effective investment projects	5009,6	12020,7	4,1
2.	Compensative payments of a part of a discount rate of commercial banks	9937,0	406,8	0,14	-	258,9	0,08
3.	Subsidizing of interest rates on the involved credits				1110	332,1	0,10	1297,5	208,0	0,06

A number of measures on attraction  credit resources from bank and other sources are accepted.

In 2005 the Government of the Republic of  Buryatia together with Open Society AC"Baikalbank" took part in realization of the Program of the Russian bank of development on crediting subjects of small business, including peasants’(farmers’) farmsteads. The parameters showed by the Russian bank of development were sustained, therefore, the Board of bank made the decision to allocate to Republic of Buryatia a limit of liabilities for the sum of 27 mln roubles. It will allow businessmen of the Republic of Buryatia to receive credit resources of the Russian bank of development in Open Society AC "Baikalbank" on favourable terms, under 13,95 % annual. From the involved means resources of commercial banks were used. In 2003 banks allocated credit resources on financing of investment projects of subjects of small business for the sum of 27,5 mln roubles.

In 2003 the major part of credit resources of the banks, allocated to subjects of small business, had a short-term (till 1 year) character and was sent to replenishing turnaround means. Since 2004 the situation with crediting subjects of small business by banks has changed. The sum of credits received by subjects of small business in 2004 in commercial banks, is 431,7 million roubles, including to realization of investment projects - 48,5 mln roubles, to replenishing turnaround means - 383,2 million roubles. For 9 months in 2005 the sum of bank credits to subjects of small business has reached 3 billion roubles. Thus,  60,3 % are the resources of the Savings Bank of the Russian Federation, 24,8 % - Open Society AC "Baikalbank", other banks - 14,9 %.

 Dynamics of development of crediting by commercial banks in calculation per one small enterprise (in thousand roubles)

Expansion of access of subjects of small business to credit resources of commercial banks directly has influenced the growth of investments in small enterprises of the republic.

Dynamics of investments in the fixed capital per one small enterprise in the Republic of Buryatia in comparison with neighbouring regions of the Siberian Federal okrug.

	Investments in a fixed capital in calculation per 1 small enterprise, th.roubles
	2002	2003	2004	1 h/y 2005
Republic of Buryatia	42,9	64,0	64,5	58,6
Irkutsk oblast	27,3	21,1	52,9	17,6
Chita oblast	20,6	28,6	29,1	60,9

Except financing actions for support of small business from the republican budget and attraction of means of the commercial banks directed to development of small business, the Republic of Buryatia in June of the current year used an opportunity of participation in federal competition for creation and development of infrastructure of support of subjects of small business (business - incubators) with granting subsidies from the federal budget. By the decision of the Competitive commission the Republic of Buryatia was recognized to be the winner, that allowed to receive from the federal budget 11,67 mln roubles for creation of a republican business - incubator. 5,0 mln roubles more are stipulated in the republican budget. The Ministry of economic development and trade of the Russian Federation and the Government of Republic of Buryatia concluded the contract about financing actions which are carried out within the framework of rendering the state support to small business in 2005.

The law of the Republic of Buryatia « About purchases of goods, executing works and rendering services for the state needs of the Republic of Buryatia » after November, 28, 2003 ? 480-III stipulates allocation of a quota in the size of 15 % from the total sum of state purchases for subjects of small business.

Dynamics of participation of subjects of small business in purchasing goods, fulfilling works and rendering services for the state needs of the Republic of Buryatia in 2003 - 11 months in 2005.

?		2003	2004	11 months 2005.
1.	Volume of state purchases, made by subjects of small business, mln roubles	362,2	384,9	443,4
2.	Number of subjects of small business which have received the state order, un.	1125	3137	3150
3.	Share of volume of state purchases, executed by subjects of small business, %	18	20	21
4.	Volume of state purchases per one small enterprise, th. roubles.	124,0	119,1	136,5

 Direct and indirect support per one small enterprise in Republic of Buryatia on the account of means of the republican budget is:

?		2003 th. roubles	2004  th. roubles	11 months 2005, th. roubles
1.	Financing of actions of state support to small business per one small enterprise	0,10	0,46	9,95
2.	The state support of investment activity per one small enterprise	4,24	0,18	0,06
	Total:	4,34	0,64	10,01
3.	Volume of state purchases per one small enterprise	124,0	119,1	136,5
	In total	128,34	119,74	146,51