Social Contract as a Tool for Stimulating Entrepreneurial Initiative of Low-Income Citizens

Abstract

Purpose: The article highlights topical issues on the development of the social contract technology as a tool for stimulating entrepreneurial initiative of low-income citizens and the ways to address these issues. Design/Methodology/Approach: Present-day strategic priorities of socio-economic development in a civilized State comprise, first and foremost, poverty reduction and promotion of small and medium-sized enterprises. The promising tool able to influence the achievement of the mentioned goals simultaneously is deemed to be such a technology of state social assistance as social contract with individual enterprise being one of its orientations. However, despite progressive opportunities, this social contract orientation has not become widespread in Russia yet, and the reasons for this state of affairs and prospects demand scientific justification. Findings: The necessity for formation and development of the targeted state assistance on the basis of the social contract technology in Russia taking into account the experience of other countries has been justified. The analysis of implementation of the social contract technology in practice has led to defining factors hindering its active application. Practical Implications: The algorithm of actions, implied by the social contract for aid recipients, and weak points of its implementation have been determined. Originality/Value: The authors have formulated proposals on further improvement of the social contract technology in terms of stimulating entrepreneurial initiative of low-income citizens.