Small Business Policy in St Petersburg and the Development of this Sector in the 1990s

Local administrations in Russia have a strong influence on the business environment. In St Petersburg the measures envisaged to assist small businesses have for the most part remained unimplemented and the specific legislation approved in the city has had little effect. Despite the absence of a clear policy by the local government to promote employment in the small business sector, it is approaching the levels registered in some Western countries. Officially St Petersburg, unlike Moscow, does not enjoy a particularly high standard of living—it is only slightly higher than the national average. The article analyses the main factors explaining the expansion of small business in the city.