Small and medium businesses in South Korea and Singapore in the context of the COVID-19 pandemic

Abstract

The research article analyzes the features of public support for small and medium businesses (SMEs) in the leading countries of the Asian world model of innovative development (South Korea and Singapore). A comparative analysis of anti-crisis government programs of SMEs financing in conditions of COVID-19 is presented. The key directions of using the experience of South Korea and Singapore for the development of a system of state financial and credit support for SMEs in Russia and overcoming the consequences of the coronavirus crisis are proposed. To reduce the financial burden on the federal budget, it is urgent for Russia to switch from SME state support to a system of public-private financial and credit support model. This goal can be achieved by developing an enabling environment for innovation of SMEs and large businesses and incentives to accelerate commercialization and promote Research and Development to the Global innovation market. The study and adaptation to the conditions of Russia of the best practice of the leading countries of the Asian model of innovative economic development in the expansion of effective and targeted state programs of credit guarantees and subsidies for SMEs, forms of tax incentives for national large private companies and foreign investors would contribute to employment growth and increase the contribution of SMEs to Gross domestic product. The advanced experience of South Korea and Singapore can be useful in organizing forms of online business and developing targeted employment support programs in sectors of the economy affected by the COVID-19.