Small and Medium-Sized Business in Russia: Problems and Ways of Solution (on the example of Orel Region)

Abstract

Small and medium-sized business is one of the major factors of effective functioning of national economy stipulating the rates of economic growth, the structure and quality of gross national product, and providing solution of social problems. In Russia under conditions of economic instability caused by sanctions of the USA and EU, small and medium-sized business is of special importance. Possessing some advantages before large business, small and medium-sized business segment should provide solution of social and economic problems at the country and each region level creating industrial and social infrastructure, increasing production efficiency of consumer goods, realizing active innovative performance and effectively using local material and labour resources. In this connection development of small and medium-sized business sector is one of the priority directions of the state policy. At present the share of small and medium-sized business in the structure of gross national product in Russia is essentially lower than the similar indicator in the European countries. As the national economy is a system of co-operating regions, Orel region was chosen as the object of the research. Small and medium-sized business segment in Orel region is one of the most mass element of the regional economy and, at the same time, it is insufficiently developed among other regions. In the research the key problems interfering effective functioning of small and medium-sized business were revealed, and the actions aimed at their solution are suggested to stabilize home market, high rates of economic growth and increase of social security of the population both in Orel region, and in Russia as a whole.