21 644 entrepreneurs went into liquidation in the Northwestern region since the beginning of the year

Due to changes in the sphere of taxation in the Northwestern Federal District, 21 644 entrepreneurs went into liquidation by their own initiative within the first two months of 2013 – that is 6% of the total number of operating individual entrepreneurs (IEs) in NWFD. Similar situation in the region occurred with farms – over 6% of the total number of farms disappeared within two months of 2013.

IA Credinform experts suppose that the biggest number of IE’s liquidations will be in the industries that require the work of wage-labourers – these are the services in catering, as well as minor construction and assembling works. Rather big number of entrepreneurs, who decided to terminate their activity, is also expected in the retailing sector. It is the increase in pension contributions for wage-labourers and for “themselves”, which is the main factor that impels small businesses to phase down production. In the small business, only those entrepreneurs will remain, who gained a stable market niche, for example, individual entrepreneurs who have chain supermarkets.

In current situation, individual entrepreneurs should carefully develop their tax policy in order to optimize budgetary payments and calculate the tax burden even in the process of establishing the business. Those entrepreneurs, who decided that such scheme would be unprofitable for them, went into liquidation at the end of 2012 and in the first months of 2013. The entrepreneurs, who did not conduct business in fact and did not provide necessary reporting, also decided officially to stop their activity. Thereby, the affect of increase in charges today may be already called a fading one. There remains a question, whether the entrepreneurs, who decided to work in shadow, would return after the change of tax rates.

It is remarkable, that according to GLOBAS-i system data, currently, there is a practically equal number of men and women registered in Russia as IE. Among entrepreneurs, around 56% are men and 44% are women. In the future, the share of women among entrepreneurs is expected to grow till 50%.