/ News

Russian Small Business Became Fearless

22nd of August 2013

Russian small business is expanding into new markets. According to experts, the enterprises are not afraid to compete with large companies and invest in technologies to improve efficiency.

According to the Oxford Economics global survey, carried out with the support of SAP based on a survey of 2,100 chief executive officers from 21 countries and provided by the newspaper "Delovaya gazeta. Yug", medium and small businessesare fundamentally changing business models, products, and market entry strategies.They are not afraid to compete with large companies and invest in technologies to improve efficiency. The number of small and medium-sized businesses in the world, operating abroad, will increase by 36% in 3 years. 

According to the survey, 45% of Russian SMBs began to pay more attention to expanding the range of products and services, as well as innovations, 69% focused on the entry into new geographic markets, 65% began to compete with large companies more severely, 45% of companies say that during the next three years, they will be receiving up to 40% of their income from the work in the global market, compared to 29% as of today.

85% of the companies (i.e. the majority), realizing that they need to entry into the global market, have already completed or are in the process of transforming their business.

More than one third of respondents believe that the development of the innovation culture within the enterprise is the priority in their efforts to transform the business.

IDC analysts are predicting an increasing contribution of small and medium enterprises into the Russian economy. For example, in 2010 the share of the country's GDP, provided by the fast growing companies, made up 20%, and is expected to double up to 40% by 2020. In the past year, more than half of the transactions in SAP were made in the segment of SMBs. And this is clear evidence of predictions – through the implementation of innovations, small companies tend to competitiveness, to a significant growth of the business, and no doubt, this trend is very positive for the country.

Innovative technology is a key to enter new markets and build strong relationships with customers. Eric Duff, the President on Global Ecosystem and Sales Channels of SAP AG, noted that “the results of the survey clearly showed that both successful companies of small and medium-sized businesses and large multinational corporations are equally affected by the globalization, and severe competition in the new markets. Medium business is a part of the global landscape and builds one chain of added value with the largest international companies. This means that such companies need benefits from the introduction of advanced innovative solutions".