Russia fails to meet small business needs

Ivan Grachyov, a representative of Public Government, (Narodnoye Pravitelstvo,) claims "Russia needs 10 million small business ventures to have economical stability. In 1995, only 960,000 ventures were registered and their number has decreased to 700,000 since then."

The biggest problem facing small business development in Russia, is red tape. Consultancy firm Grant Thornton Trid reports 58 percent of surveyed small businesses named it as a major drawback. This compares to 37 percent world wide.