Small and medium-sized businesses make up just 15% of Russia's GDP, but they're beginning to thrive in the services sectors.

In recent years the government has increased support to strengthen small business in the economy. But it’s still not easy to run or set up your own business in Russia.

The number of small businesses in Russia is growing but still the barriers remain visible.

However many businessmen are turning to banks for financial support. In 2007 loans to small business have increased by 30%.

“The most favourable lines for small businesses in Russia seem to be trade and services. It is about 60%, employing about 45% of all the small business work force. On the other hand, the government is interested in the development of manufacturing and innovative enterprises, export-oriented production and supports these sectors,” commented Tatyana Ponomareva, an analyst of IFC.

Despite barriers, analysts forecast that by 2010 about half of Russia’s workforce will be employed to small business.