Strategic Development of Small Businesses in Russian Regions

Yury Kuznetsov,Raisa Fedosova,Natalia Filimonova

doi:10.5539/ass.v10n13p231

Yury Kuznetsov, Raisa Fedosova + Show 1 more

Open Access

https://doi.org/10.5539/ass.v10n13p231

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Abstract

This article has been written to emphasize the significant role of small businesses in the development of different countries’ economy. It defines the condition and various issues of small businesses’ functioning in Russia and demonstrates the consequences of its oversight. The author’s evaluation system for small business development is also provided from a regional standpoint. Also presented are the results of cluster analysis, the analysis goes on to discuss the strategic trends of small business in Russia, and it proposes mechanisms and instruments for its implementation depending on a region’s attractiveness and competitiveness for small businesses.

Highlights

The necessity of small business at a contemporary level is characterized by its significant role in the socio-economic and political development of countries
This article has been written to emphasize the significant role of small businesses in the development of different countries’ economy
Presented are the results of cluster analysis, the analysis goes on to discuss the strategic trends of small business in Russia, and it proposes mechanisms and instruments for its implementation depending on a region’s attractiveness and competitiveness for small businesses

Summary

Introduction

The necessity of small business at a contemporary level is characterized by its significant role in the socio-economic and political development of countries. The most significant of which is the social role, which includes the possibility to provide occupations to broad layers of populations and the creation of jobs, and the improvement of life in society, which, incidentally, is reflected on the level of an economy’s development. One cannot underestimate the role of small business in establishing an innovative economy as entrepreneurs behave as innovators in the essence of their economic spirit and must constantly improve upon their production in order to develop a business. Despite the fact that government authorities in Russia emphasize the necessity of the development of this economic sector, it does not currently play a significant role in the economy (Table 1).

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