Issue 3 (17) 2012

Zagorujko Frolovich RESEARCH OF DEVELOPMENT AND OPTIMIZATION OF SMALL BUSINESS IN RUSSIA IN CONDITIONS WORLD CRISIS Conditions

RESEARCH OF DEVELOPMENT AND OPTIMIZATION OF SMALL BUSINESS IN RUSSIA IN CONDITIONS WORLD CRISIS Conditions

I.Ju. Zagorujko

Perm State National Research University

15, Bukirev st., Perm, 614990

E-mail: This email address is being protected from spambots. You need JavaScript enabled to view it.

Je.M. Frolovich

Perm State National Research University

15, Bukirev st., Perm, 614990

E-mail: This email address is being protected from spambots. You need JavaScript enabled to view it.

This article analyzes the significant impact of the financial crisis in the Russian Federation on the availability of credit for small and medium businesses, the implementation of investment projects, as well as consumer activity, which also had a negative impact on small and medium sized businesses.

The authors point out that the inherent flexibility of small enterprises, the simplicity and low cost of management, the ability to promote scientific and technological progress, accelerate the introduction of its results and to mobilize substantial financial and operational resources of the society determine significant economic, antitrust, innovation and social role of the sector.

The article explains that small businesses are characterized by such weaknesses as an over-reliance on the external environment, the instability, especially due to financial crises, lack of resources, sales challenges etc.

The authors believe that the global financial crisis is likely to have a more negative impact on the situation in the business sphere with especially small businesses to be affected. The lack of financial resources is one of the most important challenges faced by small businesses in the crisis.

Furthermore, it is not profitable for banks to lend small loans (i.e. loans are required for small businesses).

The authors explore the issues of finance in Russia and indicate that in these circumstances the state has recently allocated some funds to support small business. However, these funds are generally transferred to banks, foundations, associations, and, often, just do not get directly to the businesses.

The article describes the financial and international experience. The study shows that the countries with a developed market economy are dominated by the trends such as the serial transfer of state support and the cost of it to the regional and local level, the reduction of direct financial assistance and the prevalence of so-called "soft" , indirect methods of support, including increased tax breaks, eliminating administrative barriers, providing consulting and information services etc.

The authors conclude that in 2009–2012 there have been radically enhanced efforts to prevent and suppress acts of officials, aimed at corrupt interference in small business. The fight against the phenomena has been strengthened by the prosecution, the Federal Antimonopoly Service and the Chamber of Accounts.

In addition, the development of support measures should take into account the specific features of Russian small businesses that are substantially different from foreign ones.

All these features should be considered in the development of effective, concrete measures targeted state and private sector support for small businesses. In this case, measures to promote small businesses at the federal, regional and municipal levels, should not be duplicating but rather supplementing each other.

The paper explores the impact of the global financial crisis on the development of small business in Russia. It proposes a set of measures to support small businesses.

Keywords: small business development; the impact of the global financial crisis; government support of small business in Russia

Bibliograficheskij spisok

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