Encountered a niche market: Small enterprise thrives amidst competition
Rapid Growth and State Support Boost Small and Medium Enterprises in Russia
Small and Medium-sized Enterprises (SMEs) in Russia are thriving, with their numbers surpassing 6.7 million as of the first quarter of 2025, marking a significant increase from the previous year. This upturn is largely attributed to government support, particularly for microenterprises.
Looking ahead to 2030, the focus is shifting towards qualitative development of the SME sector, as outlined in last year's presidential decree. The head of state has set a goal to raise income per SME employee by 20%, exceeding the GDP growth rate, by 2030. To achieve this, development tools for SMEs will prioritize key sectors.
Small and medium-sized businesses currently hold a substantial share in various high-tech and resource-intensive fields. For instance, two-thirds of the 900 companies producing unmanned aerial vehicles are SMEs, many of which have been established within the past year. Moreover, approximately one-third of unmanned aerial vehicle producers have utilized state support tools.
Similarly, the light industry is experiencing a resurgence owing to the active participation of SMEs. Following the departure of several foreign brands, state support, including funding from the Corporation for SMEs, exceeded 34 billion rubles, contributing to a 20% increase in SMEs in the light industry from 2022 to 2025, reaching 53,000.
It is worth noting that the average age of Russian SME owners is relatively young, with the most entrepreneurial activity displayed among individuals around the age of 37. Furthermore, individuals under the age of 35 accounted for 45% of the owners of businesses registered in 2024.
The SME sector continues to grow despite various internal and external challenges. To further propel its growth, SMEs require development tools that address three significant tasks: stimulating the growth of SME transitions from one category to another, ensuring the growth of SMEs' contribution to the economy's supply, and expanding SME participation in ensuring technological sovereignty. Addressing these tasks will support the goal of enhancing the income per SME employee, as outlined in the presidential decree.
Enrichment Data:- Alignment with the BRICS SME Plan (2025–2030) indicates a focus on digitalization, green industrial practices, and international cooperation for SMEs from 2025–2030.- The Enterprise Asset Management (EAM) sector in Russia is expected to witness robust growth, with a 20.8% compound annual growth rate (CAGR) from 2025–2030, particularly in digital and cloud-based solutions.
While Russia-specific SME strategic plans are not entirely detailed in the available documents, these trends suggest a strategic push toward digitalization, a focus on green industrial practices, and an emphasis on international cooperation for SMEs over the next several years.
Small-business owners in Russia are primarily young individuals, with the most entrepreneurial activity seen among those around 37 years old. To sustain and further boost the growth of SMEs, the focus should be on developing tools that stimulate transitions within the industry, increase SMEs' economic supply, and expand participation in ensuring technological sovereignty. This aligns with the BRICS SME Plan (2025-2030), which emphasizes digitalization, green industrial practices, and international cooperation for SMEs. Additionally, the Enterprise Asset Management (EAM) sector is projected to experience significant growth, particularly in digital and cloud-based solutions, providing additional opportunities for small-business growth in Russia's finance and high-tech industries.
