The Current State and Specifics of Small Business Development in Russia

Abstract

The formation of the small business sector is one of the most promising areas of the country’s socio-economic development. In this regard, assessing formation dynamics and determining the problems and areas of development of the sector is of particular relevance. The purpose for the research is to analyze the current state and identify the peculiarities of small business development in Russia. To achieve this purpose the following statistical research methods have been used: data summary and grouping, calculation of integrative indicators (absolute, relative values), construction of dynamics series. The author also used general scientific methods such as generalization, induction, analysis and synthesis, etc. Based on statistical data with the use of these methods, the author analyzed tendencies of small businesses development in the context of indicators characterizing the dynamics of a number of small enterprises and their territorial distribution, sectoral structure, employment in the small business sector, enterprise financial and economic activity, their lending, etc. The research has helped conclude that there is a quantitative increase in a number of indicators for this economic sector, but the qualitative development is still not observed. The potential of small business institution is not being fully implemented for the development of territories. The research demonstrates that destructive processes in small business are largely associated with conditions in which companies operate, as well as external factors influencing them. Based on the results of various international and domestic monitoring studies of business and expert organizations, the key factors affecting its development have been distinguished. The study has identified its impact reduction areas, justified the necessity of stabilizing legislation (primarily in the tax area) and macro-economic balance. The research results may be used in the development of balanced state regional policy, as well as in drafting policy documents, planning strategic and operational activities aimed at developing small business in constituent entities of the Russian Federation. The prospects for further research work in this area are in assessing small business innovative potential

Keywords

• small business
• territory
• entrepreneurship development