SME in Chukotka: Figures and Facts

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Bilibinsky municipal district
Anadyrsky municipal district
Pevek urban district
Egvekinot urban district
Providensky urban district
Chukotsky municipal district
Anadyr
Chukotka region

SME by types of activity based in Chukotka Autonomous Region

Including: individual entrepreneurs — 935; legal entities — 364


as of November 1, 2018

SME by types of activity based in Anadyr urban district

Including: individual entrepreneurs — 345; legal entities — 171


as of November 1, 2018

SME by types of activity based in Anadyrsky municipal district

Including: individual entrepreneurs — 177; legal entities — 46


as of November 1, 2018

SME by types of activity based in Bilibinsky municipal district

Including: individual entrepreneurs — 190; legal entities — 43


as of November 1, 2018

SME by types of activity based in Egvekinot urban district

Including: individual entrepreneurs — 70; legal entities — 33


as of November 1, 2018

SME by types of activity based in Providensky municipal district

Including: individual entrepreneurs — 31; legal entities — 9


as of November 1, 2018

SME by types of activity based in Pevek urban district

Including: individual entrepreneurs — 88; legal entities — 59


as of November 1, 2018

SME by types of activity based in Chukotsky municipal district

Including: individual entrepreneurs — 34; legal entities — 3


as of November 1, 2018

Key performance indicators for SME

Number of SME, entities

Turnover of SME, RUB million

 

Average number of SME employees, units

Investments in fixed assets of employees of SME entities, million rubles

   

Information on the main indicators of SME activities in the Chukotka Autonomous Region in 2015

Location of Chukotka in the Arctic region, its territorial remoteness from the central regions of the country, a complex transportation scheme for goods delivery (total lack of rail transport, short navigation period, the only year-round means of transportation — aircrafts), as well as increased compared to central Russian regions costs on manufacturing, entrepreneurs that lack own funds needed for reproduction, the need to borrow credit funds for developing business activities — all these factors together act as a deterrent that influence the process of SME development and hampers its all-round development in the sectors of economy.

Thus most of employees engaged in small business relates to marketplace. At the same time, prevailing share of SME entities is registered as individual entrepreneurs, which are not included into the selection for statistical survey on the results of SME activities.

In 2014, there were 1,592 SME entities (including individual entrepreneurs) operating in the region, in 2015, according to expert review, there were 1,571.

Number of small and medium entrepreneurship entities

 

as of 01.01.14
(reference)

as of 01.01.15

as of 01.01.16

Alteration,
in entities

Alteration,
in %

Total

1 709

1 592

1 571*

- 21

- 1,3

Micro-sized enterprises

385

317

320*

+ 3

+ 0,9

Small enterprises

80

63

46

- 17

- 27,0

Medium-sized enterprises

4

7

13

+ 6

+85,7

Individual entrepreneurs

1 240

1 205

1 192

- 13

-1,1

* — estimate As in 2016 a complete federal statistical survey related to SME activities was conducted, data on SME activities in 2015 as part of the annual report were not submitted by the Territorial Authority of the Federal State Statistics Service for Chukotka Autonomous Region. Preliminary data on the activities of small entities (including micro enterprises and individual entrepreneurs) and medium-sized businesses based on complete federal statistical survey will be published no earlier than December 2016.

In 2015, the trend towards a decrease in the SME number continues, in particular, the number of small businesses (by 27.0%) and the number of individual entrepreneurs (by 1.1%) dropped significantly. At the same time, the number of medium-sized enterprises increased by 6 entities (by 85.7%).

The trend towards SME decrease has continued since 2013. So for three years the number of SME entities decreased by 16.2% (from 1,898 entities at the beginning of 2013 to 1,571 entities at the beginning of 2016). This tendency is mainly due to a reduction in the number of individual entrepreneurs — in three years their number decreased by 12.3% (from 1,359 entities the beginning of 2013 to 1,192 entities at the beginning of 2016).

More than 75% of the total number of SMEs in 2015 are individual entrepreneurs, 20.4% are micro enterprises, 2.9% are small businesses and 0.8% are medium-sized enterprises.

The number of SME (including individual entrepreneurs) per 1 thousand people in Chukotka Autonomous Region as of January 1, 2016 did not change and amounted to 31 entities.

Considering the absence of statistical data related to the micro-sized entities performance for 2015, information on the SME state is presented excluding the activities of micro-sized entities.

Sectoral structure of small (including micro) and medium-sized entities


Number small (including micro) and medium-sized enterprises, unities
 

as of 01.01.2015

as of 01.01.2015

TOTAL

including:

TOTAL

including:

medium-
sized enterprises

small enterprises

micro-sized enterprises

medium-sized enterprises

small enterprises

Total
including those according to OKVED (Russian Standard Industrial Classification of Economic Activities):

6 675,5

2 618,3 *

3 064,0

993,2

8 969,9

5 137,1*

3 832,8**

Agriculture, hunting and forestry

3,2

-

-

3,2

-

-

-

Fishing and fish farming

-

-

-

-

-

-

-

Mining

1 118,0

… *

1 093,2

24,8

1 741,5

… *

1 741,5

Manufacturing

20,2

-

-

20,2

-

-

-

Production and distribution of energy, gas and water

69,8

-

-

69,8

-

-

-

Construction

500,4

-

309,8

190,6

344,5

… *

344,5

Wholesale and retail trade; repairs of motor vehicles and motorcycles, household goods and personal items

1 440,6

47,6

1 058,1

334,9

3 580,9

2 300,9

1 280,0

Hotels and restaurants

78,1

-

73,1

5,0

53,4

-

53,4

Transport and communication

419,1

… *

109,4

309,7

943,7

851,0

92,7

Operations with real estate, renting and provision of services

431,9

… *

399,2

32,8

302,7

… *

302,7

Other utilities, social and personal services

23,5

-

21,1

2,3

17,9

-

17,9

* — Data on types of economic activities of medium-sized enterprises are not published in order to ensure the confidentiality of primary statistical data received from single organizations in the relevant field of activity in certain regions of the Russian Federation in accordance with articles 4 and 9 of Federal Law of November 29, 2007 No. 282-FZ "On Official Statistical Recording and the System of State Statistics in the Russian Federation";

** — excluding micro enterprises due to the lack of data as complete federal statistical survey was conducted in 2016.

Most of the turnover of small entities in 2015 attributes to the trade sector (33.4%) and mining (45.4%).

The growth in the share of small enterprises turnover is noted in the sphere of mining (by 9.76 points). But at the same time, the share of small enterprises turnover in other spheres decreased in 2015 compared to 2014. For example, marketplace turnover decreased by 1.1 points (from 34.5 to 34.4 percent), while the largest turnover decrease attributes to real estate operations, rent and services (by 5.1 points: from 13 to 7.9 percent).

The growth of small enterprises turnover is noted in the sphere of mining (by 59.3%), trade (by 21.0%) and construction (by 11.2%). At the same time, the decrease affected the volume of small enterprises turnover in real estate operations, rent and provision of services (by 24.2%), hotels and restaurants (by 27.0%), transport and communications (by 15.3%), other utility, social and personal services (by 15.2%).

On average, one small enterprise in 2015 accounted for RUB 83.3 million of turnover, one middle-sized — RUB 395.2 million (in 2014 — RUB 48.6 million and RUB 374.0 million, respectively).

The average number of employees employed in small and medium-sized enterprises in 2015 was 1,819 people (an increase of 2.5% compared to 2014). The growth in the average number of employees in 2015 is due to an increase in the average number of medium-sized enterprises (by 1.6%), as well as a positive trend in the growth of the indicator in the small business sector — by 3.5%.

Average number of employees of small (including micro enterprises) and medium-sized entities, people
 

as of 01.01.2015

as of 01.01.2016

TOTAL

including:

TOTAL

including:

middle-sized
enterprises

small enterprises

micro-sized enterprises

medium-sized enterprises

small enterprises

Total
including those according to OKVED (Russian Standard Industrial Classification of Economic Activities):

2 369

950 *

825

594

1 819

965*

854**

Agriculture, hunting and forestry

3

-

-

3

-

-

-

Fishing and fish farming

-

-

-

-

-

-

-

Mining

268

… *

258

10

269

… *

269

Manufacturing

9

-

0

9

-

-

-

Production and distribution of energy, gas and water

25

-

0

25

-

-

-

Construction

173

-

92

81

131

… *

131

Wholesale and retail trade; repairs of motor vehicles and motorcycles, household goods and personal items

868

301

244

323

667

417

250

Hotels and restaurants

57

-

41

16

30

-

30

Transport and communication

143

… *

32

111

419

380

39

Operations with real estate, renting and provision of services

163

… *

147

16

126

… *

126

Other utilities, social and personal services

11

-

11

-

8

-

8

* — Data on types of economic activities of medium-sized enterprises are not published in order to ensure the confidentiality of primary statistical data received from single organizations in the relevant field of activity in certain regions of the Russian Federation in accordance with articles 4 and 9 of Federal Law of November 29, 2007 No. 282-FZ "On Official Statistical Recording and the System of State Statistics in the Russian Federation";

** — excluding micro enterprises due to the lack of data as complete federal statistical survey was conducted in 2016.

The prevailing share of those employed in the small business sector, or 90.9%, are engaged in commercial activities, mining, construction, real estate business, leasing and provision of services.

On average in 2015, one small entity of the region employed 19 people, a middle-sized 74 people (in 2014 — 13 people and 136 people respectively).

The volume of investments directed to fixed assets by SMEs according to 2015 results amounted to RUB 27.9 million that is 2.2 times less than in 2014. The decrease in the volume of investments is observed both for small enterprises (2 times) and for medium-sized enterprises (2.8 times).

Investments in fixed assets of small (including microenterprises) and medium-sized enterprises, RUB million
 

as of 01.01.2015

as of 01.01.2016

TOTAL

including:

TOTAL

including:

middle-sized
enterprise

small enterprises

micro-sized enterprises

medium-sized enterprises

small enterprises

Total
including those according to OKVED (Russian Standard Industrial Classification of Economic Activities):

62,0

24,4 *

37,6

2,1

27,9

8,6*

19,3**

Agriculture, hunting and forestry

-

-

-

-

-

-

-

Fishing and fish farming

-

-

-

-

-

-

-

Mining

19,5

… *

19,5

-

 

… *

-

Manufacturing

2,1

-

-

2,1

-

-

-

Construction

8,9

-

8,9

-

19,2

… *

19,2

Wholesale and retail trade; repairs of motor vehicles and motorcycles, household goods and personal items

6,1

6,1

-

-

2,4

2,4

-

Hotels and restaurants

-

-

-

-

-

-

-

Transport and communication

4,0

… *

4,0

-

6,3

6,2

0,05

Operations with real estate, renting and provision of services

3,1

… *

3,1

-

… *

… *

-

Other utilities, social and personal services

-

-

-

-

-

-

-

* — Data on types of economic activities of medium-sized enterprises are not published in order to ensure the confidentiality of primary statistical data received from single organizations in the relevant field of activity in certain regions of the Russian Federation in accordance with articles 4 and 9 of Federal Law of November 29, 2007 No. 282-FZ "On Official Statistical Recording and the System of State Statistics in the Russian Federation";

** — excluding micro enterprises due to the lack of data as complete federal statistical survey was conducted in 2016.

As of January 1, 2016, one small enterprise accounts for RUB 419.6 thousand of investments in fixed assets, one middle-sized — RUB 661.5 thousand.