28th August 2013

Among the "Group of Twenty" Russia took the first place in terms of "coordinated business support" in the "G20 Entrepreneurship Barometer 2013", which was introduced by EY before the meeting of the "Group of Twenty" leaders. With the index 6.23 points our country left behind Mexico (5.89) and Brazil (5,87)

As for the criterion "coordinated business support" which includes guidance and direct communication with associated entrepreneurs, I would not do emphasis on it, since this indicator is less important than such criteria as access to finance, taxation and education, says Timur Nigmatullin, Investkafe analyst. To my mind, Russia's place in the ranking according to the criterion "coordinated business support" is due to the high concentration of businesses in major cities and especially in Moscow. Entrepreneurs are also forced to constantly cooperate to battle for their economic interests because of the high risks of doing business, over-regulation and high corruption. All these factors together create preconditions for "guidance and direct communication with associated entrepreneurs".

In general, the most favorable ecosystems for entrepreneurs from all the G20 countries, according to the criteria of the "Barometer", are created in the economically developed countries. The U.S., the UK, Canada, and South Korea took top places in all respects of the ranking. However, the researchers stressed that fast-growing markets reduce the gap, rapidly improving business environment. In addition to Russia, Saudi Arabia also demonstrated an unexpected breakthrough. The country was ranked first as the most attractive in terms of taxation and regulation – due to low tax rates and simplified legal regime.

The most acute problem for 70% of entrepreneurs all over the world is access to finance. According to this indicator Russia took 15th place with a score of 5.04, and the first three leaders are the United States (7.12 points), the UK (6.86) and China (6.75). "The problem of access to finance is a result of high interest rates on loans. In my opinion, the decline in interest rates depends on the monetary policy of the Central Bank and the government's policy to reduce risk (corruption, political, etc.). Here we may note a positive trend of recent years, which is characterized by the reduction of inflation level and formation of political competition", said Nigmatullin.

As the researchers note, it is not easier to obtain necessary financing with the growth and development of the business, while there are changes that force them to seek new sources of funds. The results show that the state should create a set of mechanisms and institutions that could provide entrepreneurs with capital at every stage of their business development. In addition to this, experts say about necessity to provide the support required for the effective use of this capital.

Uschi Schreiber, Head of EY advisory services for public sector organizations, noted that the entrepreneurs and governments of the G20 countries have a common goal to improve access to finance and simplify regulation and taxation. According to her, joint actions in these areas have already improved the business climate in many countries, but the governments of G20, said Schreiber, need to arrange exchange of best practices and should try to avoid mistakes and unintended consequences that other countries have already experienced.


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