Journal section "Regional economics"

Current State and the Features of Location of Small Business in Regions of Russia

Leonov S.N.

Volume 11, Issue 5, 2018

Leonov S.N. Current state and the features of location of small business in regions of Russia. Economic and Social Changes: Facts, Trends, Forecast, 2018, vol. 11, no. 5, pp. 103-119. DOI: 10.15838/esc.2018.5.59.7

DOI: 10.15838/esc.2018.5.59.7

Abstract   |   Authors   |   References
World experience shows that the current state of small business is a kind of catalyst for the development of economic relations in market economies. The revival of small business in Russia is three decades old, but the potential benefits of small business are still weak. The paper attempts to assess the dynamics of the state and features of the differentiation of small business in the regions of modern Russia; we show the problems in the organization of this process, consisting in the variability of criteria for determining small business, incomplete information base and the lack of conventional approaches to assessing the differentiation of small business. We substantiate the need to use as an information base the data from full-scale federal statistical observations of the state of small business in Russia in 2010 and 2015. We prove that the approach to monitoring the development of small business in the regions of the Russian Federation should be comprehensive, taking into account the state of both individual entrepreneurs and small business enterprises in the territory. We carry out integrated assessment of the state of small business in the subjects of the Russian Federation with the use of the Maximin Method, which allows us to calculate the integral index of the state of small business for each region. With the help of the proposed approach, we identify a high degree of territorial concentration of small business in regions of Russia; we reveal that the dynamics of the small business sector in the country as a whole depends crucially on its state in the leading regions; we classify regions into groups with different levels of small business development and find out that in the Russian Federation there is a convergence of its constituent entities on the parameters of the current state of individual entrepreneurship alongside the differentiation of regions according to the state of the sphere of small enterprises. In general, the situation with small business in Russia fits into the general pattern – the farther from the center, the larger the small businesses and the greater their turnover


small business, regional economy, small enterprises, subjects of the federation, individual entrepreneurs

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