Small business development and resource use in Russian regions

Denis Yu. Fraymovich, Marina A. Gundorova, Zorislav V. Mischenko, Anna-Maria Guzhov, Alexandra V. Sultanova

Abstract


Relevance. The living standards in any country largely depend on how developed is this country’s business sector. The latter, in its turn, relies on the availability and efficient use of resources. The problem that arises in this respect and that this study seeks to address is how to measure the resource potential available for the development of small businesses in order to choose the optimal strategy of stimulating this sector for this or that region.

Research objective. The aim of this research is to study resources available to small businesses and their use in Russian regions.

Data and methods. The set of indicators used in our analysis helps us measure the activity of small businesses in Russian federal districts. The key elements of the assessment are based on the official statistics and include the following: average labor productivity of small businesses, the unit turnover per small enterprise, the number of small firms per 10,000 people. Each of these indicators was analyzed by using the methods of mathematical statistics according to the three criteria: stability (S); average values (M); and the variability of the results (V), which characterizes interregional differentiation within a federal district/country.

Results. The article proposes a system of indicators for diagnosing small business development based on the concentration and performance of small-sized enterprises. The quantitative results of such analysis can be used for choosing strategies of small business development.

Conclusion. There was a significant decline in entrepreneurial activity during the post-crisis period of 2017-2018 in Russia, which could be explained by the impact of foreign sanctions and the difficult economic situation in the country (inflation, a sharp rise in the price of resources, difficulties in communication with international partners, and the difficulty or even impossibility to adopt efficient technologies in a short time). As our analysis has shown, some of the Russian territories still have underutilized resource potential that can be used for stimulating small business development.


Keywords


small business, region, resources, potential, efficiency, statistical characteristics

Full Text:

PDF

References


Artemova, O.V., Logacheva, N.M., & Nesterenko, I.Yu. (2018). Resources for developing regional small and medium-sized entrepreneurship. Society and Power, 2 (70), 48–55. (In Russ.)

Donichev, O.A., Fraimovich, D.Yu., & Grachev, S.A. (2018). Regional system of economic and social factors in the formation of innovation development resources. Economic and Social Changes: Facts, Trends, Forecast, 3, 84–99. (In Russ.) doi: 10.15838/esc.2018.3.57.6

Godoe, H. (2000). Innovation regimes, R&D and radical innovations in telecommunications. Research Policy, 29, 1033–1046. doi: 10.1016/S0048-7333(99)00051-7

de Groot, H.L.F., Poot, H.J., & Smit, M.J. (2009). Agglomeration, innovation and regional development: Theoretical perspectives and meta-analysis. In R. Capello, & P. Nijkamp (Eds.) Handbook of regional growth and development theories, pp. 256–281.

Lenchuk, E.B. (2016). National technology initiative – strategic vector of Russia’s industrial policy. International Journal of Management Theory and Practice, 2, 8–19. (In Russ.)

Blyakhman, L.S. (2013). New industrialization: essence, political and economic foundations, socio-economic prerequisites and support. Problems of Modern Economics, 4, 44–53. (In Russ.)

Zaslavskaya, T. (2013). Socio-Economics as an Urgent basis of interdisciplinary integration. Voprosy Ekonomiki, 5, 144–150. (In Russ.) doi: 10.32609/0042-8736-2013-5-144-150

Cheberko, E.F., & Mayevsky, A.V. (2013). The development of the small business sector as a factor in increasing the investment attractiveness of the region. Economics and Management, 8 (94), 22–28. (In Russ.)

Faltzman, V.K. (2019) Problems of forecasting small and medium-sized businesses. Studies on Russian Economic Development, 1, 16–22. (In Russ.) doi: 10.1134/S1075700719010064

Aganbegyan, A.G. (2018). On the way to a civilized market. Bulletin of Institute of Economy of the Russian Academy of Sciences, 1, 7–26. (In Russ.)

Birch, D.L. (1979). The Job Generation Process. Cambridge, MA: MIT Program on Neighborhood and Regional Change.

Cooper, A. (1985). The Role of Incubator Organizations in the Founding of Growth-Oriented Firms. Journal of Business Venturing, 1(1), 75–86. doi: 10.1016/0883-9026(85)90008-4

Rao, A. (2008). How to Grow Innovation Culture in Genesee Valley. Rochester Business Journal. Retrieved from https://rbj.net/2008/08/15/how-to-grow-innovation-culture-in-genesee-valley/

Bartelsman, E., Haltiwanger, J., & Scarpetta, S. (2013). Cross-country differences in productivity: The role of allocation and selection. American Economic Review, 1, 305–334. doi: 10.1257/aer.103.1.305

Linarello, A., Petrella, A. (2017). Productivity and reallocation: evidence from the universe of Italian firms. International Productivity Monitor, 32, 116–136. doi: 10.2139/ssrn.2910391

Wildnerova, L., Blöchliger, H. (2019). What makes a productive Russian firm? A comparative analysis using firm-level data. OECD Economics Department Working Papers, No. 1592.

Domnina, I.N., & Mayevskaya, L.I. (2019). Place and role of small business in the socio-economic development of the regions of Russia: new tasks of state support. Bulletin of Institute of Economy of the Russian Academy of Sciences, 3, 66–82. (In Russ.)

Kitrar, L., & Lipkind, T. (2020). Analysis of the relationship of the indicator of economic sentiment and GDP growth. Economic Policy, 6, 8–41. (In Russ.) doi: 10.18288/1994-5124-2020-6-8-41

Yakushev, N.O. (2020). Technological entrepreneurship in Russia: evaluation problems. Territorial Development Issues, 3, 1–13. (In Russ.) doi: 10.15838/tdi.2020.3.53.3

Fraimovich, D.Yu., Mishchenko, Z.V., & Gundorova, M.A. (2014). System of economic and mathematical indicators for making decisions to stimulate small business of the federal district. Management Issues, 6 (31), 100–109. (In Russ.)

Donichev, O.A., Mishchenko, Z.V., & Fraymovich, D.Yu. (2011). The system of economicmathematical indicators in assessment of modernization capacity of regions of the federal district. Financial Analytics: Science and Experience, 44, 42–49. (In Russ.)

Mirkin, Y.M. (2020) Stimulation of the development of small and medium-sized businesses: macro conditions, international experience. Scientific Works of the Free Economic Society of Russia, 1, 98–113. (In Russ.)

Greenberg, R.S. (2020) Strategy for the socio-economic development of Russia: a conversation for the future. Scientific Works of the Free Economic Society of Russia, 4, 28–33. (In Russ.)

Ivanova, N.I. (2019). Science funding. The Journal of the New Economic Association, 1(41), 195–201. doi: 10.31737/2221-2264-2019-41-1-8

Bessonova, E.V. Morozov, A.G., Turdyeva, N.A., & Tsvetkova, A.N. (2020). Opportunities to accelerate productivity growth: The role of small and medium-sized enterprises. Voprosy Ekonomiki, 3, 98–114. (In Russ.) doi: 10.32609/0042-8736-2020-3-98-114

Zemtsov, S.P., Chepurenko, A.Yu., Barinova, V.A., & Krasnoselsky, A.N. (2020). A new entrepreneurial policy for Russia after the 2020 crisis. Voprosy Ekonomiki, 10, 44–67. (In Russ.) doi: 10.32609/0042-8736-2020-10-44-67




DOI: https://doi.org/10.15826/recon.2021.7.2.008

Copyright (c) 2021 Denis Yu. Fraymovich, Marina A. Gundorova, Zorislav V. Mischenko, Anna-Maria Guzhov, Alexandra V. Sultanova

Сertificate of registration media Эл № ФС77-80764 от 28.04.2021
Online ISSN 2412-0731