Center-invest bank analyzed SME development trends in the Don region based on a new statistical digest, Small and Medium Business of the Don: 2021-2024, prepared by Rostovstat with the bank’s support. Bank experts identified key components of SME sector development in the Rostov region.

Key macroeconomic trends

• Stable contribution to the regional economy: The share of SMEs in gross regional product (GRP) remains steady at 33%. This is significantly higher than the Russian average (20.4–21.1% of GDP). The sector also provides about 30% of all jobs in the region.
• Structural shift toward larger enterprises: There is a clear trend toward a reduction in the number of microenterprises (-10% over the period) alongside growth in small enterprises (+1%) and medium-sized enterprises (+9%). Especially notable is the explosive growth in individual entrepreneurs (+19%) and the self-employed (more than a fourfold increase, reaching 447,000 people by the end of 2025).
• Adaptation and resilience: Despite external shocks, businesses demonstrate adaptability. The share of active enterprises remains at 90%, while the number of growing companies (with steady increases in headcount and revenue) rose from 8,600 to 9,700 units.

Financial results and efficiency

• Revenue growth: Total SME revenue grew, outpacing inflation. In 2024, revenue per enterprise reached 53.3 million rubles, higher than the Russian average (51.4 million rubles) and the Southern Federal District average (46.1 million rubles).
• High profitability: The overall profitability level of SMEs ranges from 9-10%, exceeding the expert efficiency threshold of 5%. In certain sectors (education, real estate transactions, professional and scientific activities), profitability exceeds 20%.
• Wage and employment growth: Wages in the SME sector increased 1.6 times over four years, reaching 43,500 rubles. Real wages (adjusted for inflation) rose by 21.9%, higher than the average for the region’s entire economy.
• Profit structure: Small enterprises (including microenterprises) make the primary contribution to the balanced financial result, accounting for 90.7% of total SME profits in 2024.

Sectoral structure and specialization

• Dominance of trade: Trade remains the main area of focus for SMEs (37.7% of all entities), due to the relatively low entry barrier and quick payback.
• Significance of construction and industry: One in ten SME enterprises operates in construction or manufacturing.
• High-tech and social sectors: The most dynamic growth (in terms of new enterprise registrations) is seen in the IT sector, hospitality and restaurant business, and education. This indicates diversification of the regional economy.
• Salary leaders in SMEs: The highest wages in the SME sector are recorded in IT (64,700 rubles), professional and scientific activities (56,500 rubles), and agriculture (56,800 rubles).

Investment activity

• Investment volume: Over four years, SME investments exceeded 374 billion rubles. The contribution of small and medium businesses to total regional investment is estimated at nearly 17%.
• Investment directions: Main investments go toward acquiring new machinery, equipment, and vehicles (46.2% of total SME investment in 2024), as well as housing construction (31.8%). Notably, the share of investment in housing by small enterprises (37.5%) is significantly higher than that of medium enterprises (3.9%).
• Sources of financing: In 2024, there is an increasing share of own funds in the investment structure (up to 47.4%), which may indicate a cautious approach to debt financing amid tighter monetary policy.

Spatial development (urban districts vs. municipal districts)

• Concentration in cities: The vast majority of businesses are concentrated in urban districts (68.1% of all SME entities). The concentration of legal entities (83.4%) and medium-sized enterprises (71.8%) is especially high in cities.
• Rostov-on-Don as leader: The regional capital accounts for 39.9% of all SME entities, 71.6% of total revenue, and 69.1% of total profits.
• Economic specialization of districts: While urban districts dominate in revenue (81.7%), municipal districts show a higher share of profit from medium-sized enterprises (62.1%), related to activities in agriculture and manufacturing.

Innovation activity

• Low overall level: The level of innovation activity remains low (within 10% for small industrial enterprises).
• Concentration in knowledge-intensive sectors: Innovations are concentrated in narrow segments. The highest indicators are shown by medium-sized enterprises in scientific research and development (100% activity), as well as in the production of computers and electronic products (75% among medium enterprises).
• Cost structure: Small businesses allocate innovation spending primarily to research and development (33.8%) and software acquisition (16.3%), while medium-sized businesses direct the vast majority of funds (91.5%) to the acquisition of machinery and equipment, indicating the extensive nature of their innovation development.

The full version of the statistical digest Small and Medium Business of the Don: 2021-2024 is freely available on the Rostovstat website and also presented on the Center-invest bank website.