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Nobody understands how best to attract investors better than the investors themselves. Interview with Alexander
Boikov - the leader of a CNCP project, which has led to the establishment of a business producing furniture facades
in Seversk.
Mr Boikov, what are the key factors in opening a business in a closed city?
Proximity to the Regional centre, Tomsk, and the cost of property, which we found to be several times cheaper than in Tomsk.
The on-going costs of industrial space are also substantially higher in Tomsk. In addition, with our partners, we already had our
own production facilities there.
All in all, we could expand our business anywhere, but the current staff reductions in SCK have increased the chances of
finding good employees. But that’s for the second stage. In the first stage, naturally, we brought workers from Tomsk, later on
we will move over completely to employing Seversk residents.
What role did the Seversk Business Development Agency play in all this, and how did you find out about the CNCP Programme?
Everything was straightforward: we learnt from people that we knew in the BDA that, to put it bluntly, some money was
available from an international programme for business development in closed cities. This seemed to me to be nothing short of
fantasy.
We put in a proposal, the first project that we carried out in the framework of CNCP lasted two years. And to be honest, I
didn’t believe in it, but things worked out differently and we are now looking at a second and a third project with CNCP.
What, in your opinion, is necessary to persuade entrepreneurs to come to a closed city?
Obviously, confidence with regard to access to the closed city. That was my greatest fear as far as Seversk was concerned, and
to tell the truth, although there is a problem, it is easier to solve if you already have property in the city. If there was no
clear interpretation regarding the access to closed cities, I think that people from open cities would have doubts about investing there.
For the rest, the key issue is to assess the situation adequately, as, in addition to the grant provided by CNCP, one has to
put in as much, or more, of one’s own money. For example, we originally planned to rent property, but in practice, we weren’t
able to find suitable workspace for rent, and so we ended up buying. Then repairs, then setting up the equipment and so on… In
the end we paid out quite large sums. So it would be difficult to participate in the CNCP Programme if one didn’t have one’s own
financial resources.
On the other hand, it would be risky for the Programme itself to hand out this sort of money to people who hadn’t got anything
of their own, however appealing the project itself might sound. That’s how it works with the banks – to get a credit, you’ve got
to lay something out yourself …
But, despite the difficulties, you consider this experience to have been positive?
Sure! We for example, were able to obtain equipment straight away, which otherwise we would have only been able buy after a
year. Sure it’s positive, that’s clear.
How do you see the future of your business in Seversk once the cooperation with CNCP is concluded?
Development will continue! Considering that this is a furniture business, it will just continue to develop here. We will
continue the cooperation with the BDA. Just development!
