The provision of domestic services is one of the types of entrepreneurial activities taxed on imputed income. In 2017, the composition of domestic services was changed by the Government of the Russian Federation, their new codes were introduced.
The article will examine in detail what is meant by the term consumer services and what features characterize the industry.
General principles
Domestic services - this is paid assistance to individuals and legal entities for cash or bank transfer. The list of services is regulated by a special Classifier. It determines whether household services offered by a particular company fall under UTII. The Classifier spells out all existing service types of assistance to the population with indication of codes.
Domestic services are those types of activities that help restore the functional properties of products or manufacture new items. These include the transportation of passengers and goods, as well as the provision of demand conditions. It also includes housing and communal services, transport assistance and catering.
Domestic services for people are included in the scope of production and non-production services, performed using socially supported methods and have the forms for realizing the material and moral needs of consumers.
Earlier, household services existed in the form of artisan workshops. Then they merged into a separate branch of the national economy and now have their own industrial and technical base with industrial enterprises and various domestic combines. The nature of consumer services is becoming more universal, types and types of services are specialized.
The role of the industry and its features
Nowadays, household services are an integral part of the market, which people often cannot do without. A growing number of people and organizations are not willing to independently solve certain problems that arise in everyday life, and they turn to trained specialists for help. The time has passed when unskilled employees worked, they are replaced by professionals in their fields.
The total value of the Russian service market is $ 400-500 million.
Russian domestic services are a kind of market compared to European ones. If in the West small businesses and a family form of organization are popular, then in Russia cooperative methods of organization are gaining momentum.
Another feature of the Russian consumer services market is that enterprises are actively developing non-core activities in order to survive in market conditions, which leads to the re-organization of organizations.
The top positions in the service assistance market belong to Moscow and Moscow Region.
Development directions
Improving the activities of service enterprises contributes to the increasing demand for social services. Moreover, both organizations and individuals use service assistance. The increase in demand is due to the desire of people to improve the quality of life and save their time. Service is requested by the most affluent citizens.
Demand for service assistance is uneven. To maintain a level in the market, organizations develop new business solutions and implement other ways of doing business. This type of business is considered one of the most difficult, because it has low profitability. In order to increase it, companies diversify their business and expand into the regions.
Diversification is to expand the range of services provided. For example, companies operating in the field of cleaning offer their clients additional assistance:
- clean water delivery;
- landscape design ;
- catering, organized at remote points.
Experts believe that the most successful forms of running this business are related and networked. With the accompanying form, service is an additional form of company activity. Under network forms, organizations create a network of their domestic services firms. In this case, branches are opened or franchising is applied.
Industry challenges
The main difficulty of the Russian market of domestic services is the low profitability of this type of business. It is not more than 10%.
Low profitability is explained by long payback periods of projects. For example, when organizing a laundry, the cost of its technical equipment is at least $ 3 million, and the payback period is up to 70 years.
Related and network forms of organization of entrepreneurship allow to solve the problem. They are the most effective models of doing domestic business today.
In addition to profitability, industry challenges include:
- poor quality of provided social services due to outdated equipment, insufficient qualifications of employees, low salaries;
- a large number of inspections from government bodies that interfere with the activities of enterprises;
- Tough competition.
Ways to solve problems
To solve problems, experts advise:
- To improve the lending system for enterprises providing social services.
- Provide organizations with tax and rental benefits.
- Improve industry regulation.
For the full development of the industry, state support of the social sphere is important.
Multiservice enterprises
To work effectively in the service sector and solve many problems in this area, enterprises organize their activities according to the type of multiservice. This form of organization provides the ability to request a service in one place and popularizes it among the population.
For the operation of such enterprises, it is important to find suitable premises in those places where a large number of people live. Some organizations continue to work in small basements, which, of course, does not increase the demand for their help. It is important for state structures and authorities to provide multiservice companies with access to the main pedestrian streets, as well as provide a simplified procedure for advertising their activities.
Classification
Domestic services to the population are qualified according to the following criteria:
- By type of work performed (laundries, hairdressers, ritual).
- By the presence of business entities (on their own or with the involvement of employees).
- By the degree of importance of the technologies involved (direct services of enterprises or additionally offered).
- By socio-economic content (services that save time and labor, as well as consumer funds).
- By material content (tangible and intangible).
- By labor costs (service requiring or not requiring the involvement of highly qualified workers).
- According to the place provided (assistance is provided in centers of domestic services or beyond).
- By lead time (urgent, non-urgent).
- By regularity (systematic, periodic, episodic).
The nuances of the organization of enterprises
To ensure the effective operation of centers of domestic services, a competent personnel policy is very important. The main issues to be resolved in this direction:
- selection and training of qualified employees at various levels;
- certification of employees;
- professional development of specialists;
- orientation of employees to responsible performance of their work;
- implementation of technical assistance to enterprises.
Thus, the current stage of development of the domestic services market requires the development of regulatory methods for this industry.