Socio – Economic Role of Service – Sector Small Business in Sustainable Development of the Russian Economy

Abstract

Listen

Translate article

1. Introduction The investigation of the tendencies of the development of the economies of developed and developing countries more distinctly reflects the trend directed on the increasing of the service sector role. In its turn, the service sector possesses a high proportion of small and medium enterprises that are badly influenced by the deterioration of the macroeconomic situation. It is also impossible to dispense without the science-based approaches to the creation of such business support-tools. It is worth mentioning, that the issues of the small business and the development of its support infrastructure in the service sector are underresearched in the modern literature. It can be noted that such scientists, as Omarova K.A., Sushchenko D.I., Mardanova G.A., Tatarskaya O.V., Yuts A.U., Ilyukhin V.V., Velibekova D.M., Magomedaliev M.A. etc. reveal in their works only the separate issues of the small business development in the service sector of economy. (Velibekova, 2006; Mardanova, 2000; Omarov, 2011). However, active and often spontaneous development of the small business in the service sector requires a close attention to it. Studying the aspects of the legal regulation of the small enterprises activity, it may be remarked, that development and support of the small business are the objects of great emphasis from the state, both, in Russia and abroad. This represents a very significant social and economic role played by small business in the economies of the countries, standing at different stages of development. The successful and harmonious development of the small business sector attests to the healthy economy, firmly standing on its feet and having a tendency to sustainable growth. Small business is an integral part of economic relations. Harmoniously fitting into their structure, it provides healthy competition and creates place of works. Based on the study of the works of a number of the scientists (Dzhandzhugazova, 2013; Kostina, 2002; Mardanova, 2000; Omarov, 2011; Tatarskaya, 2001), the authors highlight the following key positive features, inherent for small business in the service sector: * * formation and maintenance of the natural competitive environment, that stimulates the optimization of the correlation between price and quality of goods and services, and is a natural anti-monopoly regulator; * flexibility, agility, mobility and adaptability of small business allow it to adapt to the rapidly changing situation on the modern markets and meet consumer demand, both individuals' and large companies'. This feature is especially required in condition of high differentiation of the consumer demand and growth of the offered services range. High productivity of the operation is impossible without formation of both deep specialization and extensive cooperation; * creation of new places of work-the most important socio-economic function, which significantly reduces the level of unemployment, provides population with means of subsistence and stabilizes the situation within society; * innovative potential, implemented by means of development and introduction of new services. Working in conditions of tough competition for purposes of profit, small enterprises actively use the opportunities opened by the era of scientific and technological revolution. No doubt, small business cannot afford to hold large-scale research and development, though, in the developed countries such as the United States, it accounts for over 50% of scientific and technological developments and innovations; * small business serves as the foundation for the formation of the middle class, which is the guarantor of stability and sustainable development; * attraction of own resources and free resources of population for the entrepreneurship; * development of new forms of cooperation, such as franchising and marketing partnerships. Thus, service-sector small business performs important social and economic functions, so the ongoing increase of its role is not an accident but a necessary pattern. …