Management of Own Investment Activity by Small Business Entities

Abstract

The article highlights the problem of investment activity manifestation by small businesses whose activities are related to agriculture. The reserves remaining at the disposal of entrepreneurs after paying personal income tax and VAT are determined by analyzing tax liabilities and obligations. Monitoring of the official websites of the Entrepreneurship Promotion Funds showed the possibility of attracting investments in the form of grants for business support and development. The purpose of the study is to identify and justify ways to implement investment activities through a competent tax policy in relation to small businesses engaged in agricultural production. To achieve this, the task was set to analyze tax deductions from the perspective of increasing the subject’s own monetary and cash resources and the latter’s ability to invest them in production. In the course of the work, the following methods were used: monographic, abstract-logical, economic-statistical, systems approach, comparative analysis. The methodological and theoretical basis was the works of representatives of domestic science, regulatory and legislative acts of the Russian Federation regulating the functioning of the tax system; official publications, as well as materials of scientific and practical conferences. The study results proposed: to consider the financial capabilities and opportunities of small businesses in the agricultural production sector as an incentive for their own investment activity; when declaring the right to apply tax deductions [Tax on personal income (standard, social, property, investment, professional) and “input Value Added Tax”], to release their own funds from taxation and apply them, as well as to use the possibilities of attracting government (public) and private grants as investments in the production process.

Keywords

• tax liabilities
• extended reproduction
• tax deductions
• investment activity
• grant