Medium-sized Enterprises In Russia Research Articles

Determinants of receiving government support by small and medium-sized enterprises in Russia

Government support measures help companies overcome various restrictions impeding their growth and develop ment, which is of special relevance for small and medium-sized enterprises (SMEs). These measures, therefore, must reach the target companies and ensure efficient allocation of resources. The article reveals key characteristics of SMEs in Russia that increase the probability of them receiving government support. The research methodology is based on public interest theory, public choice theory and the concept of economic freedom. The research method is a two-step regression analysis, in which the binary choice model is first evaluated, and then the LASSO model is used to assess the impact of the textual content of the companies’ websites. The dataset of the study is represented by data on 2,176 Russian metallurgical enterprises for 2020–2023, of which 57% were receiving government support. The results of the first step of evaluation showed that the organization’s age and size meas ured by revenue were the key factors associated with the probability of receiving government support. At the second step, we found that the mention of certain goods or materials on the websites, the enterprise’s location and orientation towards foreign stakeholders were significantly related to the likelihood of getting state support. The study offers tools for analyzing the determi nants of government support for SMEs and highlights the importance of this analysis for more efficient allocation of government resources.

FEATURES OF SMALL AND MEDIUM-SIZED BUSINESSES IN RUSSIA

The article examines the features of small and medium-sized businesses in Russia since 2019. Its role in the modern market economy and directions of development are revealed. The article examined statistical data on the small and medium-sized business sector: employment, profitability, share in GDP, dynamics of the number of enterprises, and also analyzed the state of the business climate of small and medium-sized enterprises in Russia using the RSBI index. The dynamics of these indicators over the past four years are considered. It is noted that the main point of development of the sector is the increase in its share in GDP; in developed countries this figure is significantly higher than in Russia: in our country it has been at a low level throughout 2019-2021. The article also analyzes the role of small and medium-sized businesses in the economy of the Udmurt Republic: indicators such as the share of small and medium-sized businesses in the republic’s GRP, as well as the share of loans to small and medium-sized businesses in the total issuance of loans by banks are considered. The topic of the efficiency of economic activity of small and medium-sized enterprises in Russia and labor productivity in them is considered. The directions for the development of measures to support small and medium-sized enterprises are analyzed. A comparison has been made of some aspects of running and features of small and medium-sized businesses in the USA. The main directions for the development of SMEs have been identified and disclosed. The importance, weaknesses and strengths of small and medium-sized businesses in Russia, as well as ways to improve the situation of small and medium-sized businesses in Russia are analyzed. New directions for the development of small and medium-sized enterprises have been studied.

THE IMPACT OF INNOVATION ON THE PERFORMANCE OF SMALL AND MEDIUM-SIZED ENTERPRISES IN RUSSIA: ЕMPIRICAL ANALYSIS

The article is devoted to the study of the impact of different types of innovation on the efficiency of Russian SMEs. The purpose of the study is to assess the importance of different types of innovation for Russian SMEs and to determine the impact of types of innovation on the efficiency and competitiveness of SMEs. The research methodology involves a consistent approach combining qualitative and quantitative analysis. As a collection of information, a survey was conducted among owners of small and medium-sized enterprises in Russia on the use of innovations in the course of business activities in the last three years (2020–2023) and their impact on the company՚s performance. In addition, the experiences of some participants were explored through in-depth interviews. In total,112 entrepreneurs took part in the survey. The results of the study showed that innovations are used by the vast majority of small and medium-sized enterprises in Russia. There is no stable relationship between the size of enterprises and the innovations they choose, although in some cases we can say that certain companies tend to a certain type of innovation depending on the number of employees. Organisational innovations are the least popular in enterprises innovation, and the greatest marketing; marketing innovations showed the highest percentage of negative experiences during implementation, despite the fact that they are the most popular category of innovations.The majority of respondents see an improvement in the financial situation of the company according to various criteria and are satisfied with the results of innovation; at the same time, the larger the company, the more goals it pursues trough innovations. The smaller the business, the more interested it is in solving specific problems to increase sales, profits and customer loyalty. The larger the company, the more it follows the 360 strategy: that is, it pays attention to the creation of new goods and services, as well as to the introduction of innovations in production processes.

Institutional Transformations of the SME Sector and the Need to Change the Priorities of Its State Support

The article compares the declared goals and the actual dynamics of the development of the sector of small and medium-sized enterprises in Russia. This sector receives quite significant government support but does not fully use it for its own purposes and development, transferring part of the income to larger companies. Large companies dominating SMEs receive institutional rents in this way, and the state, in fact, finances their development. The relevance of the topic is determined by the need for structural and institutional restructuring of the Russian economy in the context of sanctions. State policy should focus more clearly on identifying and overcoming barriers to the development of small, medium, and large businesses. Such barriers include the transition from a medium-sized business to a large one when the annual revenue reaches the threshold of 2 billion rubles.

Развитие цифровых технологий и производительности труда средних предприятий России (In Eng.)

Economically developed countries develop pilot projects aimed at developing entrepreneurship and improving labor productivity through the use of modern technologies. In this regard, the state's policy focus on addressing the issue of labor productivity growth and bridging the technological gap between the country and advanced economies has brought attention to the need for discovering new avenues and resources to enhance labor productivity in Russia. The goal of this work is to identify the dependencies between the development of digital technologies and the labor productivity of medium-sized enterprises in Russia and its regions. The study confirmed the following hypotheses: there is a correlation between the share of companies using the Internet and labor productivity of medium-sized enterprises in Russia. ICT costs in Russia have a rather strong impact on the labor productivity of medium-sized enterprises. The study results can be used to identify those digital technologies indicators that have the greatest impact on labor productivity growth of medium-sized enterprises, which can be used to improve regional aspects of innovative development of the country's economy.

The effect of top managers’ years of experience on innovation

Managers' characteristics have been identified to have an influence on how they perceive innovation. This study examines the role of top managers' experience and how it influences their propensity to innovate. It employs a logit model to analyze data from the World Bank's Enterprise Surveys, primarily from small- and medium-sized enterprises in Russia. We justify the positive effect of managers' years of experience as an influential factor of enterprises' innovativeness in developing countries. The results show that top managers' years of experience directly affect innovation.

ИССЛЕДОВАНИЕ КЛЮЧЕВЫХ АСПЕКТОВ ГИБРИДНОГО ТОРГОВОГО ПОДХОДА КОМПАНИЙ МАЛОГО И СРЕДНЕГО БИЗНЕСА В РОЗНИЧНОЙ ТОРГОВЛЕ

Digitalization has caused a profound transformation of the retail sector, which is mainly represented by small and medium-sized businesses. Retail trade enterprises are increasingly mastering a hybrid approach to managing online and offline channels, which implies both physical communication with the buyer on the retail space, and the use of remote communication using digital technologies. Traditional retailers, small and medium-sized enterprises (SMEs) that adapt to digitalization can open up new opportunities, making a significant contribution to the country’s economy. The study is aimed at analyzing the development of SMEs, taking into account the advantages and problems of organizing online sales through e-commerce platforms. Special attention is paid to the specifics of the work of hybrid retail enterprises of small and medium-sized businesses. The key trends and features of the hybrid approach to retail trade are presented, which is being used by more and more individual entrepreneurs, micro, small and medium-sized enterprises in Russia and the world as a whole.

Business Activity of Small and Medium-Sized Enterprises in Russia in the Context of Sanctions

Business Activity of Small and Medium-Sized Enterprises in Russia in the Context of Sanctions

Innovative Business Models in the Context of Organizational Culture Transformation in the COVID-19 Pandemic

The purpose of this article was to establish the interrelations and mutual influence of organizational culture transformation, national culture, and innovative business models’ formation under the COVID-19 pandemic. To achieve the study goal, a multi-stage comprehensive exploratory study based on primary information obtained by expert interviewing was implemented. The developed methodological approach was tested on the example of small and medium-sized enterprises in Russia and China. As a result of the conducted testing, the previously formulated hypotheses were fully proved. H1: the negative shock of the pandemic and the ensuing quarantine restrictions caused critical changes in the business environment, cancelling the relevance of previously effective business models. H2: the new business environment required enterprises to significantly transform their organizational culture. H3: under the conditions of shock changes in the business environment and forced transformation of organizational culture the main condition for the sustainable development of enterprises is innovative business models. Н4: implementation of innovative business models depends on both the business environment and the influence of national culture. The main obstacles to the implementation of innovative business models in small and medium-sized enterprises were also identified. The developed methodological approach can be used in the real sector of the economy by state organizations and non-state funds in the development of programs to assist small and medium-sized businesses in the COVID-19 pandemic. In addition, the study results may be of interest to academic researchers, suggesting empirically determined stable relationships (hypotheses H1, H2, H3, H4) between the transformation of organizational culture, national culture, and innovative business models’ formation to ensure sustainable development of enterprises under the COVID-19 pandemic and opening new promising directions for further research.

Assessing the impact of criminal prosecution of entrepreneurs on small and medium-sized enterprises in Russia

A significant proportion of entrepreneurs as well as Russian population in general consider the possibility of criminal prosecution to be one of the main problems that hinders business development in Russia. However, only a small proportion of entrepreneurs are subjected to this type of prosecution. The current study attempts to empirically test the hypothesis about the negative impact of unjustified criminal prosecution on entrepreneurial activity. First, we examine the mechanism of unjustified criminal prosecution of entrepreneurs and then using mixed effects regression modelling on panel data for 2017—2021 assess its impact on the growth rate of the number of small and medium-sized enterprises (SMEs). The number of appeals reviewed by the Center for Public Procedures “Business against corruption” (CPP “BAC”) is used as an indicator of unjustified criminal prosecution. The results show that each additionally handled appeal reduces the rate of growth in the number of SMEs in the medium term. This relationship is explained via the theory of signals: appeals to the CPP “BAC” serve as indicators of unjustified prosecution problem for entrepreneurs. If this problem persists, a decrease in the growth rates of firms, and an increase in their number in the shadow economy can also be expected.

Analyzing Insolvency Drivers and Developing Credit Rating System for Small and Medium-sized Enterprises in Russia

Small and medium-sized enterprises (SMEs) play a key role in the Russian economy. However, banks and investors are reluctant to provide debt financing to these firms. This is underpinned by SMEs’ speculative credit quality and information asymm

Small and medium-sized enterprises in Russia: In search of the employment growth factors

During crises, discussions about the sources of employment intensify, including that of entrepreneurship. The growth of employment in the entrepreneurial sector is one of the national goals, which should be achieved up until 2030. However, the selection and verification of support measures requires the determination of the underlying growth factors. The paper proposes an econometric model, where the dependent variable is the growth of employment in the SME sector in the Russian regions over the previous decade. According to the results of the estimations, the creation of new companies is significant: one new enterprise creates on average 10 new jobs in small and medium-sized businesses, while a technological startup creates 60 new jobs next year. Employment growth in the last decade is higher in regions with growing incomes of the population, with good access to banking capital and large markets, and with low criminal risks. Increasing Internet accessibility contributes to the growth of the business sector; whereas nationalization of the economy is an obstacle. Employment is growing in SMEs in agricultural regions and decreasing in the centers of production. The efforts of the authorities should aim at lowering the barriers to market entry for the new companies, increasing access to capital, markets and the Internet, and stimulating the digitalization of the economy.

Small and medium-sized enterprises in Russia: In search of the employment growth factors

During crises, discussions about the sources of employment intensify, including that of entrepreneurship. The growth of employment in the entrepreneurial sector is one of the national goals, which should be achieved up until 2030. However, the selection and verification of support measures requires the determination of the underlying growth factors. The paper proposes an econometric model, where the dependent variable is the growth of employment in the SME sector in the Russian regions over the previous decade. According to the results of the estimations, the creation of new companies is significant: one new enterprise creates on average 10 new jobs in small and medium-sized businesses, while a technological startup creates 60 new jobs next year. Employment growth in the last decade is higher in regions with growing incomes of the population, with good access to banking capital and large markets, and with low criminal risks. Increasing Internet accessibility contributes to the growth of the business sector; whereas nationalization of the economy is an obstacle. Employment is growing in SMEs in agricultural regions and decreasing in the centers of production. The efforts of the authorities should aim at lowering the barriers to market entry for the new companies, increasing access to capital, markets and the Internet, and stimulating the digitalization of the economy.

Effects of digitalization of industrial small and medium-sized enterprises in Industry 4.0

Subject. This article discusses the issues related to the industrial production process re-engineering in a fundamental way in the conditions of Industry 4.0. Objectives. The article aims to identify the current areas of digitalization and the specifics of the implementation of Industry 4.0 achievements at small and medium-sized industrial enterprises (SMEs). Methods. For the study, I applied the methods of theoretical generalization, systems, logical, structural, and comparative analyses, and statistical methods. Results. The article highlights the advantages and limitations associated with the introduction of Industry 4.0 technologies in small and medium-sized industrial enterprises and identifies constraints and prospects for entering new markets. Based on the analysis of indices, the article assesses the state of preparedness and willingness of small and medium-sized enterprises in Russia for digitalization. Conclusions. It is necessary to conduct special studies on various aspects of the implementation of Industry 4.0 technologies at small and medium-sized enterprises.

The sustainable enterprise development tetrad and assessment of its balance

The concept of sustainable development is traditionally associated with the economy, society, ecology, and building relationships between them. At the enterprise level, this means that economic, social and environmental goals are at least consistent with each other. The validity of this understanding is beyond doubt. However, in modern conditions it is practically impossible to ensure the long-term and competitive functioning of enterprises without the use of information technologies in their activities. This article provides arguments regarding the need to transform information stability from factors into a determinant of sustainable development, thereby turning the traditional triad into a tetrad. On the other hand, due to this expansion, it becomes more relevant to assess the balance of the sustainable development components. In this regard, the purpose of the study is to develop and apply a methodology for assessing the balance of the economic, social, environmental, and information components of sustainable development according to the criteria of reliability, dynamism, and acceptability. Research results of small and medium-sized enterprises in Russia indicate that only two out of fifteen enterprises achieved a high level of balanced sustainable development. In most cases, regardless the sustainable development level, the balance of determinants is at a lower level. Moreover, cases with a high but not balanced sustainable development confirmed the assumption that a high sustainability level for some determinants can compensate for a low sustainability level for others. The results obtained prove that the real vector of sustainable development can be determined only in accordance with the balance degree.

Цифровые инновации предприятий малого и среднего бизнеса как фактор устойчивого развития российской экономики

The article examines the role of digital innovation in the business efficiency of small and medium-sized enterprises and the economic security of the country. The results of the analysis of the state of digitalization in small and medium-sized businesses. The directions of implementation of digital innovations are analyzed. It is shown that enterprises implementing innovative strategies adapt faster to changes in the external environment. On the basis of the results of sociological surveys published in open sources, the priority directions of implementation of digital innovations by small and medium-sized enterprises in Russia are identified.

Системные связи и закономерности развития среднего предпринимательства в России

Medium-sized entrepreneurship in many countries plays a stabilizing role in the economy. The article is devoted to the issues of assessing the situation in Russia from 2010 till 2019. The purpose of the study is to analyze the development of medium-sized entrepreneurship in Russia, including in the context of federal districts. The published results of study on this topic were analyzed in economic and instrumental sections. The dynamics of the number of medium-sized enterprises in Russia, including the situation in federal districts, was considered. More or less "successful" districts were identified, quantitative estimates were made. A downward trend in the number of employees in such enterprises was revealed. The dynamics of turnover of medium-sized enterprises was analyzed and compared to the number of employees. It was concluded that in some years there was dependence between these indicators, but in general for the period – there was not. The change in labor productivity was considered, the presence of positive dynamics in Russia as a whole and in districts was established. Structural analysis of investments in fixed assets per capita was carried out. Their natural structure was identified, the most and the least favorable years in this regard were identified. The general conclusion was made that the development of this form of management in the country, in particular, within the framework of the implemented National projects, is expedient and in demand.

Features of the Russian Small and Medium-sized Enterprise Lending Market at the Present Stage

Lending is one of the factors in the development of small and medium-sized businesses. In recent years, the Russian state has made serious efforts to increase the availability of borrowed funds for business and uses the lending market as a tool to accelerate economic growth. The work shows that the same mechanism works as one of the most rapid and effective in the implementation of anti-crisis policies, which can be observed, including during the 2020 pandemic.The purpose of the study is to identify the features and problems of the modern stage of the development of the lending market for small and medium-sized enterprises in Russia. The article considers two levels of financial support for small and medium-sized businesses: federal and regional. Today they are represented by different institutions that complement each other. However, despite large-scale state programs to stimulate lending, the share of small and medium-sized enterprises using borrowed funds remains low and insufficient for the active development of this sector of the economy.The study used expert and statistical analysis, the information base for the study was statistics from the Bank of Russia, the Federal Tax Service, legislation in the field of entrepreneurship, data from executive authorities, analytical reports from the Bank of Russia, the Accounts Chamber of Russia, and the Expert RA rating agency

Features of the recovery of entrepreneurial activity in Russia in the context of sustainable economic development

The author considers the restoration of entrepreneurial activity in the Russian economy as a factor of sustainable development. We consider data from August 2020 to August 2021 on the number of small and medium-sized enterprises and the number of their employees. Methods of correlation analysis, construction of regression equations, Durbin – Watson test, Goldfeld – Quantum test for heteroscedasticity were used. The number of small and medium-sized enterprises in Russia has recovered to the level of August 2020, but this is explained by the regional peculiarities of entrepreneurial activity and the lifting of the moratorium on bankruptcy. Among small and medium-sized enterprises, there were many “zombie companies” that were not officially liquidated until June-July 2021. This also explains the lack of correlation between the number of small and medium-sized enterprises and the average number of employees. The number of personnel in small business is monotonously decreasing; it does not fulfill its function of creating jobs. In addition, in most federal districts of Russia, the number of small and medium-sized enterprises has decreased in absolute terms; almost all of the growth is concentrated in the Moscow agglomeration (Moscow and the Moscow region). In most federal districts, entrepreneurial activity is below the pre-crisis level. This is explained not only by restrictions and bans on the operation of small and medium-sized enterprises during the pandemic, but also by the economic situation in Russia, and a decrease in real incomes of the population. There is no correlation between entrepreneurial activity and inflation indices, but this may also be a consequence of accounting for non-performing firms.

Foreign Economic Activity of Small and Medium-sized Enterprises in Russia and China under Pandemic

Foreign Economic Activity of Small and Medium-sized Enterprises in Russia and China under Pandemic