Scientist Gøril Voldnes at Fiskeriforskning has worked since 2005 to map the framework conditions for business activity in Russia. She has also assessed the policy instruments that have been set in motion to establish more small and medium-sized companies - and thus strengthen the Russian economy.
Establishing more companies of this type will make Norwegian companies more interesting as joint venture partners for the Russians since the Norwegian companies are small or medium-sized.
Contributing little to the GNP
The Russian authorities have become aware that the country still is dependent on a few giants within the oil and gas industry. Russia is therefore very vulnerable in relation to the supply of raw materials and economic fluctuations in the world economy.
"They have also done somewhat well in establishing more businesses", says Voldnes. "The number of small and medium-sized businesses has roughly doubled in the past decade."
The problem is just that while these companies now account for 95 percent of the business in Russia, they are only contributing with 13 percent to the gross national product.
"Moreover, the majority of the new companies are established in trade and service industries and not in industries characterised by innovation and new technology, for which Russia has a great need", she says.
Bureaucracy is restrictive
Today's regulations and a comprehensive and cumbersome bureaucracy are large obstacles for the newly started businesses to overcome in order to develop and become profitable.
Also, the industrial structure in Russia is still characterised by large actors, making it difficult for new companies to gain entry into the market.
"In addition, the Russians are quite simply not used to starting and developing their own companies after more than 70 years with a planned economy", she says in closing.
The study will be completed during 2006 and is a collaboration amongst Fiskeriforskning, Troms County Council District and Kola Science Centre in Apatity, Russia. This is an Interreg III A Kolarctic North Project.
