Russians treat entrepreneurs more favorably, though they trust them less than politicians. 

MOSCOW, October 9, 2017. The Russian Public Opinion Research Center (VCIOM), which celebrates its 30^th anniversary this year, and the SKOLKOVO School of Management presents the data of two independent studies devoted to the Russian entrepreneurship.

Russian attitudes toward business differ according to the type of business: small and middle-sized enterprises are perceived more positively, whereas large businesses are often treated negatively (positive attitudes: 90% vs 67%). Compared to the previous periods, there is a tendency toward more favorable perceptions of small and middle-sized enterprises: the recent survey data show that 90% express favorable views (79% in 2009).

Russian people are still suspicious about entrepreneurship: despite a considerable decrease in distrust levels (from 45% in 2010 to 27% in 2017), the share of those who distrust entrepreneurs is still bigger than the share of those who trust them (27% vs 22%).

The level of entrepreneurial activity is changing: the share of those who want to start up a business is decreasing (from 32% in 2008 to 22% in 2017), whereas the share of those who think that this is not a positive trend is increasing (from 49% in 1991 to 68% in 2017). At the same time, 7% of Russians say that they run their own business (2% in 1991). Men, middle-aged respondents, persons who have higher education diplomas and inhabitants of the million cities tend to be more interested in business.

The key factor behind success in business is a start-up capital (53%); the main obstacle for those who start a business is the lack of capital (18%). What is important is also to have a good team (34%) and certain personal qualities (24%). Financial well-being and financial cushion are other factors that facilitate the starting up of businesses, according to respondents.

Whereas Russians share their opinion on factors that shape the business success, they are divided in the opinions on obstacles. Bureaucracy and administrative pressure are regarded to be the main things that hamper the development of business in Russia. Over the eight years of the measurement the administrative pressure on business entities has always been an important factor (27% in 2009 and 26% in 2017). According to the Skolkovo School study, lack of professional team (31%), lack of personal experience and knowledge (31%) and personal fears/barriers and lack of self-confidence (26%) are major obstacles. However, the top three obstacles do not include such problems as bureaucracy, administrative pressure or multiple checks.

When asked to propose an important state decision that would influence the development of entrepreneurship in Russia, the Skolkovo audience proposed to decrease taxes and to introduce tax holiday for new businesses (36%).

There are three main types of business community proposals addressed to the authorities: 1) financial support for entrepreneurs such as tax cuts (36%), decreased loan interest rates (12%), assistance and subsidies (7%); 2) administrative regulation, i.e. simplified reporting/less bureaucracy (10%), independent judiciary (7%) and reduced number of checks (5%); 3) educative support and advice, i.e. introduction of entrepreneurial studies in schools and universities (5%), educational programs and consultations for entrepreneurs  (5%, for each).

The role of business is assessed positively in the Russian society: three-quarters of Russians (74%) consider that entrepreneurial activities are beneficial for people. The main positive impacts of business are job creation (28%) budget replenishment (13%), increased accessibility (12%) and large range of goods and services (10%).

The VCIOM-Sputnik Russian nationwide survey was conducted on July 28-29, 2017. The survey involved 1,200 Russians aged 18 and over, and was carried out using stratified dual-frame random sample based on a complete list of landline and mobile phone numbers operating in Russia. The data were weighted for the probability of selection and reflect social and demographic characteristics. The margin of error at a 95% confidence level does not exceed 3.5%. In addition to sampling error, minor changes in question wording and different circumstances arising during the fieldwork can introduce bias into the survey.

The 2008-2016 studies are based on household surveys.

The SKOLKOVO School of Management study was conducted in September, 2017, using the online survey technique.  The sample is based on the SKOLKOVO school list of contacts. The target audience was entrepreneurs and business owners, top-level and middle-level managers. A total number of 479 persons took part in the survey. 

All-Russian survey

Survey results of SKOLKOVO School

Conditions for successful business operations: opinions of entrepreneurs

Database: 479 persons

Obstacles that hamper starting up a business: opinion of entrepreneurs  

Database: 313 persons (current and former entrepreneurs)

Proposals to prime-minister to support entrepreneurship  

Database: 479 persons

Note: Using materials from the site www.wciom.ru or wciom.com, as well as distributed by VCIOM, the reference to the source (or hyperlink for the electronic media) is obligatory!