south east europe regional market opportunity forum connecting businesses with outside markets
DESCRIPTION
South East Europe Regional Market Opportunity Forum Connecting Businesses with Outside Markets Russia Presented By: Eric Hansen Deputy Director The U.S. Russia Center for Entrepreneurship Bucharest, Romania November 2, 2006. The U.S. Russia Center for Entrepreneurship Who We Are. - PowerPoint PPT PresentationTRANSCRIPT
South East Europe Regional Market Opportunity
Forum
Connecting Businesses with Outside Markets
RussiaPresented By:Eric Hansen
Deputy DirectorThe U.S. Russia Center for Entrepreneurship
Bucharest, RomaniaNovember 2, 2006
The U.S. Russia Investment Fund
The U.S. Russia Center for Entrepreneurship
Who We Are
Mission: Accelerate Entrepreneurship in Russia via:Trainings/WorkshopsNetwork Learning EventsConferencesResearchGrants
$330 Million USAID Enterprise Fund
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Entrepreneurship Training and Education
Policy Analysis and Development
Catalyst Organization
Commercializing Innovation and Technology Transfer
The U.S. Russia Center for EntrepreneurshipProgram Priorities
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Seminars Entrepreneurship Group
Panel Events Business Plan
Competitions Promote Entrepreneurship
Education in Universities
Entrepreneurship Training and Education
Educate Policymakers on Entrepreneurial and Growth Industries
Promote High Standards of Business Practices and Corporate Governance
Policy Analysis and Development
The U.S. Russia Center for EntrepreneurshipProgram Priorities
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Catalyst Organization
Identify and Recognize Role Models
Publish Case Studies, Success Stories and Books for Entrepreneurs
Promote Innovation and Initiative in all Sectors of the Economy
Business Planning Training to Technology Start-Up Companies
Commercializing Innovation and Technology Transfer
The U.S. Russia Center for EntrepreneurshipProgram Priorities
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Many Potential Partners • 2 million SMEs (<250 employees)
Skilled Labor in Sciences, Software, Aerospace and Optics Access to Natural Resources Increasing Foreign Direct Investment
• 2005 = $9 billion• 2004 = $6.6 billion
Expanding Consumer Market • 2005 = $220 billion
• 2004 = $193 billion Increasing Monthly Income
• 2005 = $440• 2004 = $320
Access to Capital• Increased Presence of Foreign Banks and Investment Funds
Russia: Competitive Advantages
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Consumer market Food processing and packaging Printing Medical equipment and
pharmaceuticals Retail trade and distribution Healthcare services Financial services (asset man.,
insurance, banking, mortgage) Hotel and tourism
Natural resource-oriented Wood processing, pulp & paper Metals Oil & gas Chemicals Fishing
Industry Building Materials Environmental technologies Automotive Industry
Subcontractors High Tech (software
development) Machine-building (nuclear power
stations, optics, trucks and automobiles, other)
Infrastructure Ports and airports Road construction Telecommunications Logistics (cargo terminals,
warehouses, etc.)
Russia: Expanding Sectors
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High Administrative Barriers• Fire & Sanitation Inspections, Certification/Licensing, Utilities
Hook-Up• Corrupt Legal System • Weak Intellectual Property Protection• Cumbersome Tax Regime• Restricted Market Access in Certain Industries• High Cost for Warehouse and Production Premises
Deficit of Information• Marketing Research, Demographics, Statistics
Poor Management Practices Scarcity of Manufacturing Labor
Russia: Risks
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#2 – Stavropol Region (Agriculture)#15 – Novosibirsk Region (IT)#22 – Nizhny Novgorod Region (IT)#23 – Rostov Region (Agriculture)#34 – Volgograd Region (Agriculture)#57 – Leningrad Region (IT)#64 – Krasnodar Region (Agriculture,
Tourism)#65 – Irkutsk Region (Tourism)#68 – Moscow Region (IT)#69 – City of St. Petersburg (IT, Tourism)#78 – City of Moscow (IT, Tourism, Food
Distribution)#79 – Voronezh Region (Agriculture)
Where to Enter the Russian Market?Sample Ranking of Administrative Barriers by
Region*#1 (Low Barriers) - #80 (High Barriers)
* Source: Conditions and Factors Affecting the Development of Small Enterprises in the Regions of the Russian Federation
OPORA Russia9
Good Local Partner• Carefully research potential
partners Long-Term Approach
• Need to be committed to Russia Carefully Research the Market
• Be wary of official statistics Be Prepared for Unexpected
Legal/Regulatory Obstacles
Russia: Key Success Factors
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Russia: Additional Resources
Trade Promotion Resources: Agricultural Business Trade Associations: www.rusagribiz.com IT Companies Trade Association: www.acsit.ru Russian Travel Industry Union: www.rata.ru World Food Exhibition: www.world-food.ru PRODEXPO International Food Exhibition: www.prodexpo-moscow.ru
Business Support Organizations: OPORA (Organization of Small and Medium Business): www.opora.ru Delovaya Rossia (Business Russia): www.deloros.ru Russian Venture Capital Association: www.rvca.ru European Bank for Reconstruction and Development: www.ebrd.com Association of European Business in Russia: www.aebrus.ru American Chamber of Commerce in Russia: www.amcham.ru
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Thank You
Eric HansenDeputy Director
The U.S. Russia Center for [email protected]
www.cfe.ru
St. Petersburg
Nizhny Novgorod
MoscowOur Offices:
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