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Russian regions plan to realize the project on creation of the so-called business incubators
Russian regions plan to realize the project on creation of the so-called business incubators, which will create favorable conditions for small business entrepreneurs, announced RF deputy minister of economic development and commerce Andrei Sharonov during a press conference at RIA Novosti on Monday. Mr. Sharonov said that the ministry has already held "active consultations" with about 20 regions where the project is planned to be implemented. "We are talking about business incubators with sizes starting from 1,500 sq. meters and minimum investment of 18 mln rubles (US $600,000)," he emphasized. The idea of the project is to rent small-size offices (20-40 sq. meters) to small-business entrepreneurs for a period of 2-3 years "with a progressive rental rate," the minister said. "For example, the rent for the first year could be 50% of the market value, but by the third year it must correspond to the market value and the rental agreement must end," he explained. "The idea of creating business incubators is to give "jump-start" to the development of small businesses, and not to support small businesses on favorable conditions," Mr. Sharonov added. The federal authorities and the subjects of the Russian Federation will participate in the project on a parity basis at the beginning. In the future, though, the share of participation of the subjects is supposed to increase. Mr. Sharonov also said that in 2005 South Korea would start the development of business incubators for its small enterprises in Russia. These incubators will create all necessary conditions for the creation of 20 small South Korean companies on the territory of the Russian Federation. "The same principle of creation and free market activity in 2-3 years will apply to small business companies," the minister added
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