Ministry of Economic Development introduced to the Government Social Entrepreneurship Draft Law

Ministry of Economic Development of the Russian Federation introduced Draft Federal Law “On Amending Certain Legislative Acts of the Russian Federation (with regard to fixing “social entrepreneurship” concept) to the Russian Federation Government.

The document was elaborated to implement provisions for Small and Medium-Sized Entrepreneurship Development Strategy in the Russian Federation for the period up to 2030, in accordance with item 8 of the action plan (“roadmap”) “Supporting non-governmental organizations in receiving access to provision of services in the social sphere.” The draft law determines “social entrepreneurship” concept and conditions for referring small and medium-sized companies to the social entrepreneurship, including creation of jobs for certain categories of people (disabled, single parents with small children, parents with many children, non-working pensioners, etc.) or carrying out business activities aimed at improvement of citizens' life, and (or) expansion of their capacities to be sustainably self-sufficient. It is envisaged that information on social entrepreneurship entities will be included in SMEs’ Unified Register and maintenance thereof is provided by Federal Tax Service from August 1, 2016.

Draft law separate article determines support types to SME entities engaged in activities referred as social entrepreneurship.

Such support can be provided by state and local self-government authorities through development of SMEs support infrastructure specialized organizations, creation of franchise banks, implementation of activities in the field of social entrepreneurship popularization, organization of educational programs, assistance in development of interregional cooperation and promotion of goods and services through the Internet, and other measures.

Possibility of state or municipal property lease contracts conclusion without holding contests or auction is also envisaged.

According to Maxim Parshin, Director of Small and Medium-Sized Entrepreneurship Development and Competition Department of Ministry of Economic Development of the Russian Federation, the Draft Law elaborated by Ministry of Economic Development of the Russian Federation is aimed at elimination of information, property and organizational restrictions for development of small and medium-sized enterprises operating in the field of social entrepreneurship.