Small Business in the Arctic: Background for Changing the Management Paradigm

Abstract

The article is devoted to the analysis and justification of socio-economic background that initiates the need to change the paradigm of management for small and medium-sized businesses in the Arctic zone of the Russian Federation. The key points of this analysis, in addition to the generally accepted estimates of demographic trends, were those indicators of the dynamics and structure of the standard of living which are the link between the population as a consumer of goods and services, and small businesses that create these goods and services. In the almost complete absence of a single content that allows full monitoring of small and medium-sized businesses, the state makes attempts to make adequate management decisions based on the project management methods. It is especially clearly reflected in the adopted and implemented system of national and federal projects and programs. At the same time, even in the current trends in the formation of information and analytical support for these projects and programs that directly or indirectly relate to small businesses, economic aspects often prevail over social ones, which is directly reflected in the formation of the management paradigm. At the same time, a systematic approach and appropriate tools, lead the authors to the conclusion that in the coordinate system of socio-economic development of the Arctic territories, the economic drivers are large corporate structures, while small businesses are assigned the role of a localized “social buffer”. It is one of the main backgrounds for changing the paradigm for small and medium-sized business management in the Arctic areas of Russia. The current economic situation caused by the COVID-2019 pandemic fully confirms our assumptions.

Keywords

• small and medium-sized businesses
• arctic zone of the russian federation
• socio-economic development of territories
• system approach