More than 917 thousand small and medium-sized businesses are registered in Moscow

In the capital, the number of small and medium-sized businesses exceeded 917 thousand at the beginning of April 2024, having increased by 5.7 percent over the year, said Deputy Mayor of Moscow, head of the Department of Economic Policy and Development of the city Maria Bagreeva.

“A favorable climate for the work of small and medium-sized businesses has been created in Moscow thanks to a large-scale system of benefits and support measures in the most diverse sectors of the capital's economy. At the beginning of April, 431.2 thousand individual entrepreneurs were registered in the register of SMEs - 10.6 percent more than a year earlier. The number of legal entities increased by 1.7 percent - almost to 486 thousand", - said Maria Bagreeva

About 96 percent of them, or almost 876 thousand, are microenterprises with annual income below 120 million rubles and a staff of no more than 15 employees. Over the year, their number increased by 5.7 percent. Four percent, or 37.2 thousand, are small businesses with annual revenues up to 800 million rubles and the number of employees not more than 100 people. Their number increased by 5.3 percent. Less than 0.5 percent are medium-sized enterprises with up to 250 employees and annual turnover not exceeding two billion rubles. There are about four thousand of them among SMEs - 6.6 percent more than in April 2023.

According to the Department of Economic Policy and Development of Moscow, almost a third of SMEs (296.6 thousand) are engaged in trade, with legal entities more often preferring wholesale trade, and IEs - retail. More than 12 percent (113.4 thousand SMEs) work in professional, scientific and technical activities, and 9.5 percent (87.3 thousand) - in construction.

The greatest growth of SMEs was recorded in education. Over the year their number in this sphere increased by 12.7 percent - up to 14.8 thousand. In trade the growth amounted to 8.6 percent, in administrative activities - 7.6 percent. Among legal entities, the fastest growing sectors were transportation and storage (9.3 percent growth), administrative activities (6.8 percent), and education (4.5 percent). Among individual entrepreneurs, the highest growth was observed in trade - 16.1 percent, education - 14.3 percent and construction - 12.9 percent.

SMEs are a major employer. According to the register of SMEs at the end of the first quarter of 2024, almost 2.3 million employees worked in this sector. Over the year, their number grew by 2.5 percent, with legal entities growing by 2.2 percent and sole proprietorships by 7.4 percent.