Small businesses make one of the most quickly growing sectors of St. Petersburg economy. By the end of 2001nearly 120 000 small businesses were working in the city (12.5% of their total amount in Russia). The average listed number of personnel was 627 000 people (appr. quarter of people employed in the city economy). In St. Petersburg there are 23 small businesses per 1000 citizens (in Moscow - 21, in Kalinigrad - 11, the average index in Russia is 6).

The production volume (works, services) of all types of enterprises in 2001 exceeded 50 billion roubles. By the number of employees and the production volume, the leading sectors in the structure of small businesses are trade and public catering, civil construction and industry.

Basic Performance Indices of Small Businesses in 2001

Branches of Economy	Average listed number of personnel		Production volume (goods and services)
	Tsnd people	% to total	Min roubles	% to total
Total,	620,5	100	42961	100
including by branches of economy: Industry	106,6	17,2	7569	17,6
Agriculture	1,0	0,2	58	0,1
Transport	19,1	3,1	862	2,0
Communications	1,4	0,2	108	0,3
Civil Construction	111,4	17,9	8676	20,2
Trade and public catering	291,2	46,9	17393	40,5
Wholesale trade in industrial and technical goods	5,1	0,8	755	1,8
Data-processing services	2,5	0,4	90	0,2
Real estate transactions	7,2	1,2	607	1,4
General commercial activities Facilitating the market operation	14,6	2,4	3754	8,7
Housing and communal services	2,0	0,3	192	0,4
Non-production types of personal services	6,0	1,0	186	0,4
Health care, physical culture and social security	11,4	1,8	336	0,8
Education	1,1	0,2	63	0,2
Culture and arts,	5,4	0,9	200	0,5
Science and scientific services	13,1	2,1	1246	2,9
Finances, crediting sphere, insurance, provision of pensions	2,4	0,4	х	х
Other types of activities	19,0	3,0	866	2,0

The main instruments for implementation of the state policy of support to small businesses, both at the federal and regional level, are state programs of support to small businesses.

Implementation of Program of Public Support to Small Businesses for 2000-2001 approved by Law of St. Petersburg of 09. 06. 2000 No. 225-25 was carried out on a tender basis, in accordance with the RF Civil Code and Presidential Order "On Priority Corruption Preventive Measures and Reduction of Budget Expenditure on Purchasing Products for Public Bodies" No. 305 of 08. 04. 2000. The tenders were open for both commercial and non-commercial organizations.

As a result of tenders, the financing was allocated to projects related to the implementation of modern technologies in the innovation and production spheres, and projects of the social sphere submitted by small enterprises created by retired military men, and companies who employ disabled people:

• 2000 - 29 contracts for the amount of 27 514 mln roubles;
• 2001 - 25 contracts for the amount of 33. 5 mln roubles.
• Most of the winners are associations, unions and funds.

As a result of the implementation of the Program measures there were created and are functioning: "hotline" for provision of small businesses with specialised express information; a furniture-making shop where unemployed people are working, a support centre for the unemployed, Small Business Support Centres in 6 districts of the city; an Internet server "Small and Medium Business Support in St. Petersburg"; a permanent exhibition of goods manufactured by small enterprises of St. Petersburg. Booklets "Entrepreneurship in Petersburg" were published. In the framework of exhibition "Russian Manufacturer", IV International exhibition was held: "Small Business. Success Technology". St. Petersburg Union of Entrepreneurs opened a reception room where young businessmen can receive a free consultancy on all aspects of entrepreneurship.

According to the State Committee on Statistics, St. Petersburg has 23 small businesses per 1000 citizens (in Moscow - 21, in Kalinigrad - 11), which is 3 times more than the average index in Russia (6). The share of small businesses of St. Petersburg makes 12. 5% of the total number of small enterprises in Russia.

In terms of the branch structure, over 40% small enterprises of St. Petersburg are operating in the spheres of trade and public catering, 21% - in industry and only 4. 47% in science.

At present the implementation of Program of Public Support to Small Businesses for 2002-2004 is being carried out in the city. The Program stipulates a set of measures aimed at the elaboration of the legal, taxation and administrative environment to facilitate the entrepreneurship, creation of new working places and raising the living standard of the people involved in entrepreneurship. The priority directions of support to small businesses were selected on the basis of the analysis and projections of the economic situation in St. Petersburg prepared by the Expert Council on Small Businesses of St. Petersburg Government, and associations of entrepreneurs and subjects of small business.

The following funds are allocated for the implementation of the measures of the Program:

• 2002 - 98.5 mln roubles
• 2003 - 30 mln roubles
• 2004 - 40 mln roubles.

The Program foresees creation and development of small businesses infrastructure - business development centres and small business support centres that shall provide a full range of services to the novice entrepreneurs.

Co-ordination of issues related to the development and support to small businesses in St. Petersburg is within the competence of the Department for Coordination of Entrepreneurship and Innovations of Committee on Economic Development, Industrial Policy and Trade: 190000, Saint-Petersburg, Voznesensky prospect, 16.
Tel.: (812) 315-5152, 319-93-60, fax: (812) 319-95-54,
E-mail: cedipt@gov.spb.ru.