Small Businesses in Vladimir Sagged by 13% During the Pandemic

Catering and trade make up the bulk of small businesses

In Vladimir there are 18.7 thousand small and medium-sized businesses, as well as individual entrepreneurs. Before the pandemic, i.e. before the spring of 2020, there were 13% more. The number of small, medium and microenterprises in two years decreased by two thousand.

Vladimir’s administration published the final data on socio-economic development of the city in the first quarter of 2022. Now all levels of government are discussing types of support for SMEs – to maintain and expand businesses. In the regional center recorded 7.7 thousand small, medium and microenterprises, 11 thousand individual entrepreneurs and 7.2 thousand self-employed.

The latter category was not reported at all in the small business section at the end of 2019. The trend of hairdressers, tutors, realtors and manicure masters coming out of the shadows at the beginning of the year was told by the head of the tax service of the region Marat Fahretdinov. Most of them occupied the niche of self-employed. And the total number of people employed in small and medium-sized businesses during the years of the pandemic has decreased – from 70.4 thousand to 68.8 thousand people.

“Most small businesses are concentrated in trade, catering, consumer services – 42%. Transport and communication employed 13.8% of subjects, construction – 10%, manufacturing – 8.4%, real estate operations – 8.5%, education, health and sports – 3.9%, architecture – 2.3%, accounting and legal services – 2.5%, employed in tourism – 1%, insurance and other financial services – 1%, other activities – 6.6%,” – reports the city administration.

During the pandemic of a new coronavirus infection, there was much talk about the plight of the catering industry. Restaurateurs repeatedly appealed to the city and regional authorities to loosen anti-covetail restrictions and provide financial support. At that time, tax breaks, a moratorium on rent and soft loans were introduced. These measures and a lot of work by business owners did their job.

Now in Vladimir there are 545 catering businesses with 30.5 thousand seats. At the end of 2019, there were fewer establishments – 534, and the number of seats slightly more – by 300 units. The number of restaurants and cafes remained the same at 25 and 135, respectively, and the number of bars decreased slightly from 58 to 53.

“The city’s restaurants, cafes and bars feature various national cuisines: Russian, European, Japanese, Chinese, Oriental, but the opening of enterprises with Russian national cuisine remains a priority,” the city Department of Economy, Investment, Business Development, Consumer Market and Services noted.

In the pandemic, because of the decline in tourist traffic predicted a sharp deterioration in the hotel business. But since the beginning of 2022 the hotel “Tourist” and the hostel “Grad” opened. Semyazino hotel increased its room stock up to 28 rooms, and Sketch mini hotel – up to 13 rooms.

Now the room stock is 1,616 rooms with a capacity of 3,604 people. For comparison, the 2019 room count is 1,490 rooms and capacity is 3,406. So the hotel business during the pandemic not only survived, but also showed growth.

Original publication

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