Functioning of SMEs in Service Industry under Sanction Pressure: Challenges and Prospects for Development

Abstract

Introduction. The service sector, being the leading indicator of the level of development of the national economy, demonstrates the degree of its resistance to the effects of external shocks. The sectoral structure of the service sector is undergoing significant changes today. SMEs are extremely sensitive to changes in the external environment. In turn, they are mobile, flexible and demonstrate a high degree of adaptation to adverse impacts and the ability to search for new market opportunities. The purpose of the work is to study the trends in the functioning and development prospects of SMEs in the service sector in the context of an unprecedented sanctions impact on the Russian economy. Methods. In the study of trends in the development of SMEs in the service sector, general scientific methods were used: analysis and synthesis, comparison and generalization, systematization, analysis of statistical data and graphical presentation of results, sociological methods - a survey of experts in the service sector. Results. The results provide an analysis of the trends in the development of small and medium-sized businesses in the Russian Federation for the period 2017-2022 in the context of changes in the industry structure. The data of a sociological survey, reflecting the negative factors of the impact of sanctions, as well as the importance of state support programs for business, are presented. Conclusion. Based on the analysis of statistical data and a sociological survey, key factors that have an impact on the functioning and development of SMEs in the service sector under sanctions pressure were identified. It is concluded that it is necessary to develop mechanisms of supporting SMEs in the service sector, taking into account operational feedback from entrepreneurs on the effectiveness of various activities.