Russia’s High-Tech Boom Is Powered by Small Businesses and Young Entrepreneurs

Small and medium-sized businesses are leading the charge in Russia’s digital transition — with drones, AI-driven medical systems, and robotics at the forefront.

In Russia, small and medium-sized businesses are increasingly driving the production of advanced tech. Young entrepreneurs are showing strong interest in fields like unmanned aerial vehicles, AI-powered medical systems, robotics, and other cutting-edge sectors. The trend was highlighted in an interview with Rossiyskaya Gazeta by Alexander Isaevich, CEO of Russia’s Small and Medium Business Corporation (SMB Corporation).

Isaevich identified three major trends in Russian entrepreneurship: digitalization, technological innovation, and a generational shift toward younger business leaders.

According to him, two out of every three drone manufacturers in Russia come from small business backgrounds. These smaller players are more agile and better able to adapt to rapid changes, unlike larger corporations that may require months to restructure operations.

The numbers back up this transformation: over the past three years, the number of SMBs in the IT and telecom sectors has grown by 15%. Meanwhile, online commerce has expanded nearly ninefold in the last five years, with over 60,000 new entrepreneurs entering the space in the first half of 2025 alone.

Young people are playing a particularly visible role. One in four sole proprietors in Russia is under 35, and many are investing in innovative ventures such as modular housing and creative urban spaces.