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The President said Russia lagged far behind other developed market economies in the sphere of small and medium business, which was a cause of concern for the country’s leaders. He stressed that in developed countries small business provided employment for two thirds of the working population and accounted for more than 50% of the GDP, while the figure for Russia was less than 22%.

Statistics show that the number of small enterprises has not been growing since 1996, and one in every four is put into liquidation. Meanwhile the number of companies without the legal entity status has been growing. In Mr Putin’s opinion, these are alarming facts. The Government, the State Duma and the State Council are preparing decisions aimed at rectifying the situation: cutting down red tape in the sphere of small business, making these companies more viable and their work more transparent.

The President’s meeting with entrepreneurs was part of the preparation for the session of the State Council of Russia devoted to the support and development of small and medium businesses scheduled for December 19.