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Small business of South Russia: investment potential

Small business plays a big part in social-economical development of South Russia (includes North Caucasian region, Astrakhan and Volgograd regions, Kalmykian Republic) and South Federal District. It allow to increase manufacture, guaranteeing employment for the population, development in sphere of trade and services

The specialists of investment direction of JSC "Center-invest" Bank held a research with target of determination of quantitative characteristics in development potential of South Russia small business.

There is analysis of an initial situation in economics of South Russia.

The South of Russia is strategic important region of Russia Federation:

  • Holds an advantageous economic and geographical position - on crossing of the important overland, sea, air ways by longitude and latitude directions;
  • Has a highly developed transport infrastructure and multi branch complex of production:
  • On its territory 10, 2% of All-Russian main production funds are concentrated.
  • It has high population density and significant productive developed of territory (it is 3, 5% of country territory and 14, 7% of its population);
  • It has a unique volume and quality of nature resources potential, which include:

    • vast fertile soil that take more than 70% of total soil fund of a region;
    • favourable climate, which produces optimal conditions for development of agriculture;
    • great reserve of mineral resources: explored reserve of f coal is 6. 5 billion tons, of oil 200 mln tons, of natural gas - 250 billion cubic meters; of dolomites - 30 mln tons (10 % of Russian reserves).
  • Vast resources of mineral waters and favorable recreation conditions.