Small and medium business in Kabardino-Balkarian Republic is one of the most important sectors of the regional economy which affects on its growth and the quality of life of the population.

There are 5 business incubators operating in the republic (in Nalchik, Baksan, Prokhladny, in the Baksansky and Zolsky municipal districts), in which about 74 small and medium-sized businesses are placed, which created about 290 jobs. Also, the first agro-industrial business incubator in Russia with a training ground was opened in the Baksan municipal district.

The acting subjects of small and medium-sized business are provided with guarantees from the funds of the non-profit organization "Guarantee Fund of Kabardino-Balkarian Republic" to attract a bank loan.

During 2016 year, the Guarantee Fund provided 12 guarantees for a total of 47.8 million rubles. The amount of loan agreements under the guarantee of the fund amounted to 128.8 million rubles.

In 2016, a regional microfinance organization - a non-profit microcredit company "Microcrediting Fund for Small and Medium Enterprises of the Kabardino-Balkaria Republic" was established. Since the beginning of activity the Fund issued 21 micro-loans to small and medium-sized businesses for a total of 16.5 million rubles.

There is also "Center of Innovations in the Social Sphere of the Kabardino-Balkaria Republic" which provided 292 consultations. Short-term courses were conducted at the Center on the legal basis of entrepreneurship, analysis, planning and control of business processes, also on  the basics of business accounting. The number of people who completed training at the School of Social Entrepreneurship was 21 people.

In the framework of the annual competitive selection of subjects of the Russian Federation, whose budgets are granted in 2016 from the federal budget for state support of small and medium-sized businesses, the Ministry of Economic Development of Kabardino-Balkarian Republic has prepared and protected applications, as a result federal subsidy of 56.368 million rubles was provided in the republican budget. This subsidy with co-financing of the republican budget of Kabardino-Balkaria Republic in the amount of 2.966 million rubles was allocated for the implementation of the following activities:

-          subsidizing of small and medium-sized businesses to reimburse part of the costs associated with the acquisition of equipment for the purpose of creating and (or) developing or modernizing the production of goods (works, services). In 2016, grants were granted to 9 business entities;

-          subsidizing of small and medium-sized businesses in part of the interest rate on bank loans (including compensation contracts concluded in the previous period). In 2016, subsidies were granted to 2 subjects of entrepreneurial activity;

-          subsidizing a part of the costs of small and medium-sized businesses, carrying out socially-oriented activities aimed at achieving socially useful goals. In 2016, subsidies were granted to 3 subjects of entrepreneurial activity);

-          creation and (or) maintenance of activity of the non-profit financial organization “Entrepreneurship Support Fund of Kabardino-Balkarian Republic”.

In March 2016, the Agreement on cooperation between the Government of Kabardino-Balkarian Republic and JSC “Federal Corporation for the development of small and medium-sized enterprises” (SME Corporation) was signed, within the framework of which the SME Corporation provides support to small and medium-sized businesses in Kabardino-Balkarian Republic.

In 2016, within the framework of the pilot project "MFC for Business" in all 12 branches of the State budget institution "Multifunctional Center for the provision of state and municipal services of Kabardino-Balkaria Republic" (hereinafter MFC), separate business windows have been opened for servicing small and medium-sized businesses.

The subjects of small and medium-sized businesses can obtain in all MFC branches about 195 services, including services of the SME Corporation. In total for the period of implementation of the pilot project "MFC for Business" in 2016, through the business windows of MFC, 14,120 services, including 2,797 services of the SME Corporation, were provided to small and medium-sized businesses.

In order to provide property support to business entities operating in the territory of Kabardino-Balkarian Republic, as well as to simplify the procedure for access of small and medium-sized businesses to the use of movable and real estate property objects, the list of property has been adopted and is regularly updated.

The list of state property was adopted by the Order of the Ministry of Land and Property Relations of Kabardino-Balkarian Republic dated October 26, 2016 No. 55. Constant interaction with authorities of local self-government of Kabardino-Balkarian Republic is carried out on the issue of forming, supplementing and approving this list.

On an ongoing basis, information, consulting and methodological assistance is provided to small and medium-sized businesses on the  questions of organization and development of entrepreneurial activities, on mechanisms for state support of small and medium-sized businesses, seminars, forums, oral and written consultations for small and medium-sized enterprises on the implementation of entrepreneurial activities.

On the official website of the Ministry of Economic Development of Kabardino-Balkarian Republic, the portal of small and medium-sized businesses of the Kabardino-Balkaria Republic, the investment portal of the Kabardino-Balkaria Republic, information on the development of small and medium-sized enterprises and on mechanisms of state support for small and medium-sized businesses is constantly updated.

1. Federal Law dated July 24, 2007 No. 209-FZ "On the development of small and medium-sized businesses in Russian Federation";

2. Federal Law dated December 26, 2008, No. 294-FZ "On protection of the rights of legal entities and individual entrepreneurs in the exercise of state control (supervision) and municipal control";

3. Federal Law dated July 22, 2008 No. 159-FZ "On the peculiarities of alienation of real estate property in the state ownership of the subjects of Russian Federation or in municipal ownership and leased by small and medium-sized business entities and on amending certain legislative acts of Russian Federation" ;

4. Federal Law dated May 22, 2003 No. 54-FZ "On the use of cash registers in the implementation of cash payments and (or) payments using electronic means of payment";

5. Tax Code of the Russian Federation part II dated August 5, 2000 No. 117-FZ:

5.1.Chapter 26.1. The taxation system for agricultural producers;

5.2.Chapter 26.2. Simplified taxation system;

5.3.Chapter 26.3. The system of taxation in the form of a single tax on imputed income for certain types of activities;

5.4.Chapter 26.5. Patent system of taxation;

5.5.Chapter 34. Insurance premiums;

6. Order of  the Government of the Russian Federation dated June 2, 2016 No. 1083-r "On approving the Strategy for the development of small and medium-sized entrepreneurship in the Russian Federation for the Period until 2030";

7. Law of Kabardino-Balkarian Republic dated January 20, 2009 No. 10-RZ "On the development of small and medium-sized businesses in Kabardino-Balkaria Republic";

8. Law of Kabardino-Balkarian Republic dated May 18, 2009 No. 22-RZ "On the tax rate when applying a simplified taxation system in the territory of Kabardino-Balkaria Republic";

9. Law of Kabardino-Balkarian Republic dated November 29, 2012 No. 86-RZ "On the patent system of taxation in the territory of Kabardino-Balkaria Republic";

10. Law of Kabardino-Balkarian Republic as dated November 15, 2016 No. 49-RZ "On setting the tax rate at the rate of 0 percent for individual entrepreneurs when applying the simplified taxation system and the patent taxation system in the territory of Kabardino-Balkarian Republic";

11. Law of Kabardino-Balkarian Republic dated April 17, 2013 No. 38-RZ "On the commissioner for the protection of the rights of entrepreneurs in Kabardino-Balkarian Republic";

12. Resolution of the Government of Kabardino-Balkarian Republic dated January 17, 2012 No. 1-PP "On the state program of Kabardino-Balkarian Republic  “Economic development and innovative economy”;

13. Resolution of the Government of Kabardino-Balkarian Republic dated October 28, 2015            No. 243-PP "On approval of the Regulation on the procedure for granting subsidies to small and medium-sized businesses to recover part of the costs associated with the acquisition of equipment for the creation and (or) development or modernization of production of goods works, services) ";

14. Resolution of the Government of Kabardino-Balkarian Republic dated October 28, 2015            No. 244-PP "On approval of the Regulation on the procedure for granting subsidies to small and medium-sized businesses, carrying out socially-oriented activities aimed at achieving socially useful goals";

15. Resolution of the Government of Kabardino-Balkarian Republic dated October 28, 2015            No. 245-PP "On approval of the Regulation on the procedure for granting subsidies to small and medium-sized businesses to recover part of the costs associated with the payment of interest on loans raised in Russian credit institutions for construction (reconstruction) for the own needs of production buildings, structures and structures or the acquisition of equipment for the purpose of creating and (or) developing or modernizing the production of goods (works, services) ";

16. Resolution of the Government of Kabardino-Balkarian Republic dated January 26, 2006        No. 14-PP "On the commission for the financing of projects in the sphere of small and medium-sized enterprises";

17. Resolution of the Government of Kabardino-Balkarian Republic dated March 4, 2008                No. 46-PP "On the establishment of the state treasury institution" Kabardino-Balkarian business incubator ";

18. Resolution of the Government of Kabardino-Balkarian Republic dated February 26, 2009 No. 40-PP "On the establishment of a non-commercial organization “Guarantee Fund of Kabardino-Balkaria Republic”;

19. Resolution of the Government of Kabardino-Balkarian Republic dated May 13, 2011              No. 123-PP “On the procedure for holding a tender for the selection of municipal programs to provide subsidies to the budgets of municipal entities of Kabardino-Balkarian Republic in order to finance activities to support and develop small and medium-sized businesses, subsidies to the budgets of municipal entities of the Kabardino-Balkarian Republic, including the amounts of            co-financing;

20. Resolution of the Government of Kabardino-Balkarian Republic No. 58-PP dated March 31, 2017 "On measures to ensure implemention of the Federal Law “On the application of cash registers in cash settlements and (or) settlements using electronic means” in the territory of Kabardino-Balkarian Republic  and on admition as no longer valid the Resolution of the Government of Kabardino-Balkarian Republic dated July 29, 2005 No. 261-PP";

21.Order of the Government of Kabardino-Balkarian Republic dated August 15, 2014 No. 503-rp "On the establishment of an autonomous non-profit organization" Center for Innovations in the Social Sphere of the Kabardino-Balkaria Republic ";

22. Order of the Government of Kabardino-Balkarian Republic on May 16, 2016 No. 244-rp "On the establishment of a non-profit microcredit company" Microcrediting Fund for small and medium enterprises of Kabardino-Balkarian Republic".