How To Open A Business In The Roses

More than 70 per cent of those wishing to open their business in Russia are unable to realize their dreams in the end, found themselves in the NIS. Among the main obstacles: bureaucracy and expensive loans

The International Sociocultural Research Laboratory of NISWE conducted a two-stage panel study in two federal districts, Central and North Caucasus, in the summer of 2012 and spring 2013, to find out what prevents people from becoming businessmen.

Most people planning to start their own business do not realise their plans, prove the results of the study. Respondents who were going to open their case in the summer of 2012 were 269 of the respondents. A further 164 persons participated in the survey. Of these, 29 respondents had their business in 2013. The results showed that most respondents, about 77 per cent, did not open business. " It may be assumed that there is minimal dependence between intent and direct behaviour " , as noted in the report of the authors of the study.

Among the main obstacles to the opening of business in Russia, bureaucracy is at first place: the need to collect a large number of documents and the length of consideration of various issues. The challenges also included: financial problems (e.g., inability to obtain credit or investment difficulties), excessive taxation and corruption of officials, lack of public support (laws, lack of financing for small businesses), and high-priority rents or difficulties in finding a location.

Issues related directly to the business sector were mentioned: lack of knowledge, lack of learning, problems with contractors and staff qualifications.

At the same time, a leading researcher of the International Scientific and Scientific Research Laboratory for Sociocultural Studies of NISE Alexander Tatarkoand also by conducting a study on " Individual social capital as a success factor in the opening of a new business " , it notes that social ties are a catalyst for success in building their own business in Russia. Friends ' assistance and participation in organizations are critical factors that influence the human intention to open up business. They also succeed in overcoming the above problems.