Prime Minister Mikhail Kasyanov hailed the growing role small businesses are playing in the economy, but called on the government to redouble its efforts to support the sector through less bureaucracy and taxes. Kasyanov, speaking to ministers during the weekly Cabinet meeting, said small businesses now account for 20 per cent of gross domestic product (GDP), up from 14 per cent just a year ago, but that bureaucracy remains "the most sensitive and painful issue" for the sector.
"A large economy starts with small business. Small business means social and economic stability for this country," Kasyanov said, according to the government's web site.
However, while Kasyanov trumpeted government efforts to cut red tape - such as reducing the number of organizations that must be visited to register a company from five to one - experts said little progress has actually been made on reducing bureaucracy.
