OREANDA-NEWS. December 29, 2010. The Citi Foundation and the Russian Microfinance Center (RMC) have launched a program to support start-up entrepreneurs in five Russian regions. The participating regions will be selected at the beginning of 2011. Within the framework of the program, Citi, RMC and the Financial University under the Government of the Russian Federation will jointly develop a specialized training program that will help emerging entrepreneurs develop sound business plans and make better choices when selecting external sources to finance the development of their businesses.

Through this project, experts from the selected microfinance organizations in five Russian regions will receive training on how to work with start-up entrepreneurs and help them plan their financial operations and identify appropriate microfinance programs. About 900 prospective entrepreneurs are expected to undergo the training by the end of 2011, and the majority of these entrepreneurs will be able to start up their businesses after the training sessions using state subsidies or microloans from microfinance organizations.

Mikhail Mamuta, RMC President, comments: "Implementation of this project is very important for entrepreneurs that are just starting up their businesses and for the entire small business sector. With the support of the Citi Foundation, we plan to take a number of steps to develop the financial and educational infrastructure for business start-ups."

Sergey Korotkov, Retail Banking Business Head at ZAO Citibank, explains: "Citi has been investing in the development of entrepreneurs for many years. The promotion of entrepreneurship is the most efficient tool for improving standards of living and it is also one of the most important components in the country’s economic development. Thanks to RMC and the network of microfinance organizations, people in the furthest corners of Russia will receive support."

The government runs a number of programs to support business start-ups. Start-up subsidies provided by the Federal Service for Labor and Employment are particularly important. However, in reality, entrepreneurs starting up their own businesses face a number of significant challenges such as inefficient financial management and a lack of external financing sources. Microfinancing that targets business start-ups may help resolve these issues.