KEY CONCLUSIONS

Growing exports are the indicator of competitiveness of the Russian economy

“Export is an indicator of competitiveness of our products, and we [the Government – Ed.] must ensure that our products meet all of the global standards,” Anton Siluanov, First Deputy Prime Minister of the Russian Federation – Minister of Finance of the Russian Federation.

Government support of exports pays off

“Our task is to increase the volume of shipments of non-primary and non-energy exports in order to reach the parameter of USD 250 billion by 2024. <...> So far, we proceed at a good pace of more than 10% annually; last year’s growth was nearly 12%,” Denis Manturov, Minister of Industry and Trade of the Russian Federation.

“We have established export support centres in the regions. The volume of support for the regions is increased sixfold for the current year, with 3.5 billion roubles earmarked,” Andrey Slepnev, Chief Executive Officer, Russian Export Center.

“In 2017, our exports [from Nizhny Novgorod - Ed.] amounted to exactly USD 3 billion, non-primary and non-energy. The share of non-primary and non-energy exports is 76%,” Gleb Nikitin, Governor of Nizhny Novgorod Region.

PROBLEMS

Small and medium-sized enterprises lack knowledge and skills to access the foreign markets

“The share of small businesses in the total exports is 2% in Russia, 68% in China and 60% in Turkey <...> Such is the scale of the problem that we have to deal with,” Andrei Sharonov, President, Moscow School of Management SKOLKOVO.

“We discovered that in the minds of entrepreneurs there are lots of barriers: the barrier of their own region, the barrier of Russia exclusively, or the closest allies in the Eurasian Union. Those companies that are the first to break those barriers become successful, despite everything that has been said before; they step up and move on to the global markets,” Andrey Slepnev, Chief Executive Officer, Russian Export Center.

“Managers need to identify their business opportunities and take a step beyond. In addition, there are internal and external barriers to entering the markets of other countries, so they are comfortable within their own country,” Peter Hoffmann, Network Development Director, PwC's Accelerator.

“Often the company’s management does not allocate the resources necessary to research opportunities for distribution abroad,” Gleb Nikitin, Governor of Nizhny Novgorod Region.

“The internal obstacles for SMEs are quite serious. Perhaps, there is not enough skills, time or knowledge to discover their business opportunities,” Peter Hoffmann, Network Development Director, PwC's Accelerator.

Government support measures do not meet the needs of small and medium-sized enterprises

“We have government support measures, but it appears that either we [small businesses - Ed.] knock the wrong doors, or we do not fit into those doors. <...> We want ideas on how to support small enterprises to be borrowed from business associations,” Alexander Kalinin, President, All-Russian Non-Governmental Organization of Small and Medium Sized Businesses OPORA RUSSIA.

SOLUTIONS

Building support system for SMEs to enter the global markets

“The tasks of the Russian Export Center: to advise the Russian regions and SMEs on the opportunities that they have to enter the foreign markets; to assist them in arranging their entry into the foreign markets; to help them identify the markets for their products; to provide financial support,” Anton Siluanov, First Deputy Prime Minister of the Russian Federation – Minister of Finance of the Russian Federation.

“The KPI of the trade representative constitutes ensuring the access of our enterprises to the markets of the country where the trade office is located,” Denis Manturov, Minister of Industry and Trade of the Russian Federation.

“It is necessary to do networking, especially for small companies, because they cannot find contact with a potential large client without assistance from the outside,” Igor Drozdov, Chairman of the Board, Skolkovo Foundation.

“We have selected 5 companies and we have signed memoranda on acceleration with them. In those memoranda there are specific measures: a joint research of locations for distribution. <...> We help identify specific locations and specific products that can be distributed there, we determine the optimal logistics, we develop measures to support and promote the products together with the Russian Export Center, and we create a training programme for the personnel,” Gleb Nikitin, Governor of Nizhny Novgorod Region.

Creating educational programmes for SMEs and skills in exports

“The first thing we need to do is learn how to use the tools that have already been tried and tested, including trade missions and embassies; <...> the whole system that was being developed for decades,” Sergey Katyrin, President, Chamber of Commerce and Industry of the Russian Federation.

“It is important that people are not afraid to consider exporting. Many are afraid: they think it is too complicated,” Gleb Nikitin, Governor of Nizhny Novgorod Region.

“Education and training programmes are required. The structure of export support programmes needs to be reviewed,” Peter Hoffmann, Network Development Director, PwC's Accelerator.

Orientating business projects to foreign markets

“What has changed is the understanding that equipment must be global from the start; that is, we invented it with our partners from Germany, because the major markets are the Eastern European ones,” Maksim Savinkov, Director, CSort.

“The most important thing is to create the blueprint for exports and solve the problem of leadership, overhaul the enterprises and get them to export,” Anatoly Popov, Deputy Chairman of the Executive Board, Head of the Corporate Business Block, Sberbank.