Executive summary

There is great potential to accelerate economic growth, job creation and diversification in the Russian Federation by lifting its rate of business creation and the numbers and competitiveness of its small and medium-sized enterprises (SMEs). There are substantial gaps to be made up with most OECD countries and a range of other emerging economies. Less than 30% of the Russian Federation workforce is employed in SMEs compared to more than 50% in every OECD country. Only 5% of the Russian Federation’s adult population is currently involved in starting or running a new business compared with 16% in China and 18% in Brazil. Only 5% of Russian Federation SMEs undertake any type of innovation, compared with typical rates of around 50% in OECD countries. The Russian president has set ambitious targets to increase the contribution of SMEs to the Russian economy, including growth in the share of GDP generated by SMEs from 25% in 2012 to 50% in 2020. This report examines how government policy can help achieve these objectives.