Small-scale enterprises contribute significantly to the country's GDP, a topic recently deliberated during a public forum by the Partnership for Micro, Small and Medium Enterprises (PMEF). The discourse aimed to enhance the efficiency of these businesses.
Hanging out at "Avito Business 360" during the St. Petersburg International Economic Forum (18+), entrepreneurs and experts from various industries gathered to chat about the hardships, hot topics, and advancement tactics for small and mid-sized businesses. Here's what they had to say.
The founder of VLAVA, a federal street food franchise, Pavel Krupin, the mastermind behind Lapochka, the natural lemonade brand, Anton Balykhov, FRESA’s Group restaurant king, Antonio Fresa, and "beeline business" marketing guru, Sergey Subbotin, along with Ilya Dudkovsky, the "Avito Business 360" business department director, shared their views on the current market landscape and what steps are needed to survive.**
Russia has seen a growth spurt in SMEs, with nearly 7 million businesses currently operating (a record since 2016), providing jobs for 39% of the country's working population.**
Ilya Dudkovsky, the sharp insight from "Avito Business 360," noted that SMEs contribute around 20% of Russia's GDP, about half of the percentage in developed countries. SMEs are key drivers of economic growth in the region, producing jobs, fostering innovation, and facilitating quick decisions, and maintaining adaptability.
The modern market is all about speed, whether that's employee work, customer service, production capacity, or launching new products. Still, as important as speed is, maintaining quality and profitability should never take a back seat.**
Antonio Fresa, the luxury restaurant segment veteran, also touched on this trend. He believes that quality should be a 360-degree focus, so they sink a lot of resources into staff training and cultivating corporate culture.
Anton Balykhov, the visionary behind Lapochka, believes that the shift towards automation is not just a trend but an industry demand. A new generation of employees wants to engage in creativity and marketing, but they shy away from getting their hands dirty in workshops. This new reality forces businesses to maximize production automation and relies heavily on platforms like Ozon, Avito, delivery services, and AI to streamline processes.
"Last year we even involved AI in creating a new lemonade flavor based on user preferences and requests. This automated decision essentially replaced our marketing department and saved a substantial chunk of change," said Balykhov.
The next five years will be all about digitalizing and streamlining business processes, integrating AI technologies, building a strong emotional bond with the product, and creating a powerful personal brand. Each entrepreneur at the forum had a unique perspective on what it takes to succeed in today's market.
Sergey Subbotin from "billion business" emphasized the importance of keeping the lines of communication with customers open, and prioritizing speed over intelligence when it comes to bringing products to market. While he didn't mention any direct link to AI or automation during the discussion, his focus on speed suggests a systemized and streamlined process to reduce time-to-market.
Krupin, the man behind VLAVA, sees success hinging on scaling a team that shares the company's ideology. Spending 40% of his time scouring for top managers who resonate with his business vision is key.
Fresa advises sticking to an area where you have expertise and resources. If you don't have massive funds, consider building a solid foundation in a familiar niche before branching out into new territories.
Balykhov stresses the importance of maintaining flexibility and being willing to take on linear jobs. Relying on reliable partners, dividing responsibilities clearly, and having the freedom to be a visionary and a system builder are also crucial.
While no specific detailed strategies or exact quotes were presented at the event, the atmosphere and emphasis on networking, discussion, and knowledge sharing strongly hint at strategic agility, digital engagement, and cooperation among Russian SMBs as they navigate ever-changing economic conditions.
With access to expert advice, market data, and support programs, SMBs are better equipped to stay on course, adapt, and prosper.
Ilya Dudkovsky, the director of "Avito Business 360," highlighted the significant role of SMEs in Russia's economy, contributing approximately 20% of the GDP.
Anton Balykhov, the founder of Lapochka, spoke about the growing trend towards automation in businesses, using AI to streamline processes and create new products based on user preferences.