Improving the Strategic Sustainability Management of large, Medium, and Small Businesses in the Depressed Regions of Russia

2019 ◽  
pp. 74-86
Author(s):  
Yu. V. Kuznetsov ◽  
E. M. Anokhina ◽  
E. V. Melyakova
Keyword(s):  
Economic Development ◽  
Small Businesses ◽  
Small Enterprises ◽  
Development Indicators ◽  
Profit Centers ◽  
Regional Authorities ◽  
Depressed Regions ◽  
Medium And Small Enterprises ◽  
Regions Of Russia ◽  
Large Enterprises

This study1 presents a methodology for assessing the strategic sustainability of enterprises in Russian regions at the micro level as a part of assessing the strategic sustainability of the complex of enterprises in a region. The authors suggest directions for fostering the economy of the depressed regions ofRussiaby improving the management of strategic sustainability of the complex of large, medium, and small enterprises in a region. The recommendations developed for federal and regional authorities on how to improve the management of the complex of enterprises in the regions are based on the hypothesis proved in the study about the dependence of economic development indicators of a region on the strategic sustainability of the complex of enterprises operating in its territory.Aim. The study aims to suggest directions for improving the management of the strategic sustainability of large, medium, and small enterprises in the depressed regions of Russia based on the formation of regional profit centers.Tasks. The authors identify the peculiarities in the development of large enterprises in the depressed regions of Russia by calculating an integrated index of economic and financial sustainability of enterprises; conduct a comparative analysis of the activities of large enterprises in depressed and developed regions to prove the hypothesis about the dependence of the economic and financial sustainability of large enterprises on the region’s level of socio-economic development; develop recommendations for federal and regional authorities on how to improve the management of the complex of large, medium, and small enterprises, including a proposal on the formation of regional profit centers.Methods. The theoretical and methodological basis of this study includes theories and concepts on the role of enterprises and entrepreneurship in the economic development of a region. The study uses general scientific methods: analysis and synthesis, comparative and statistical analysis, systematization, calculation of an integrated index, financial ratio analysis.Results. The economic and financial indicators of large businesses in depressed regions are comparable to those of large businesses in developed regions (including the development indicators of the largest enterprises included in the Expert 600 rating), with some indicators showing values that are even higher than in developed regions. This confirms the hypothesis that the level of socio-economic development of a region does not have a dominant effect on the sustainability of development of large enterprises. The level of development of regional economies depends on the regional business structure. The revealed patterns make it possible to propose directions for improving the management of strategic sustainability of enterprises in depressed regions to federal and regional authorities.Conclusions. The improvement of development management in depressed regions should be aimed at developing government support tools that facilitate the development of the complex of enterprises in the regions. It is necessary to integrate the sustainability management of the complex of enterprises in a region into the strategic management system at the federal and regional levels. Along with the implementation of national projects aimed at developing small businesses, increasing labor productivity, supporting innovation and development institutions, in depressed regions it is also necessary to implement projects aimed at developing large businesses and integrating them with medium and small enterprises based on cooperation roadmaps. A new approach to the development of depressed regions based on the formation of regional profit centers would facilitate the formation of the sustainability of the complex of enterprises in depressed regions, allowing rational use of national project funds. This study is a continuation of the article “Approaches to assessing the strategic sustainability of large, medium, and small businesses in the depressed regions of Russia” published in Ekonomika i upravlenie No. 10, 2019.

Approaches to Assessing the Strategic Sustainability of Large, Medium, and Small Enterprises in the Depressed Regions of Russia

2019 ◽  
pp. 25-38
Author(s):  
Yu. V. Kuznetsov ◽  
E. M. Anokhina ◽  
E. V. Melyakova
Keyword(s):  
Economic Development ◽  
Russian Federation ◽  
Regional Economic Development ◽  
Small Enterprises ◽  
Russian Regions ◽  
Regional Economic ◽  
The Russian Federation ◽  
Depressed Regions ◽  
Medium And Small Enterprises ◽  
Regions Of Russia

The presented study examines the results of the assessment of the strategic sustainability of the complex of large, medium, and small enterprises in Russian regions. The specific features and parameters of the complex of enterprises in the depressed regions of the Russian Federation are identified. The hypothesis about the dependence of the economic indicators of regional development on the strategic sustainability of enterprises operating in the region is confirmed. Directions for applying the results of this study to boost the economies of the depressed Russian regions by improving the management of the complex of enterprises are proposed. Aim. The study aims to analyze the methodological approaches to assessment proposed by the authors as well as the strategic sustainability of large, medium, and small enterprises in the depressed regions of Russia.Tasks. The authors develop a methodology for analyzing the strategic sustainability of the complex of large, medium, and small enterprises in Russian regions as a crucial factor of regional economic growth; identify specific features in the development of this complex in the depressed regions of Russia by calculating an integrated index for performance assessment – index of strategic sustainability of the complex of enterprises in the region; determine the sustainability parameters of the complex of enterprises in the constituent entities of the Russian Federation based on the developed system of indicators. According to the results of the study, the authors characterize directions for improving the management of the complex of large, medium, and small enterprises.Methods. The theoretical and methodological basis of the study comprises theories and concepts of the role of enterprises and entrepreneurship in regional economic development, allowing the authors to propose definitions for the concepts of ‘strategic sustainability of the complex of enterprises in the region’ and ‘regional profit center’. This study also uses general scientific methods: analysis and synthesis, comparative and statistical analysis, systematization, calculation of an integrated index, cluster analysis, and correlation analysis. The calculations are based on the data of the Russian Federal State Statistics Service, Russian Federal Tax Service, and SPARK database by Interfax.Results. The study shows that the complex of enterprises in depressive regions is not strategically stable. In comparison with regions where the socio-economic development rate is higher, the depressed regions of the Russian Federation have a significantly lower proportion of large business enterprises, lower labor productivity and innovative activity of enterprises, less favorable demography of enterprises, much lower share and growth rate of corporate income taxes in the total tax revenues of the region, and other indicators pertaining to the analysis of activity of enterprises. This confirms the hypothesis of the dependence of regional economic development on the business structure of the region and makes it possible to propose ways of improving the management of strategic sustainability of enterprises in depressed regions for federal and regional authorities.Conclusions. The complex of large, medium, and small enterprises in depressed regions is characterized by low and extremely low sustainability parameters, which affects the economic and social development of the regions. Many key indicators of the development of depressed regions over the past 30 years have values below 50 % of the average level in Russia. Improvement of the management of development of depressed regions should focus on enhancing government support tools that facilitate the development of the complex of enterprises in the regions. The management of sustainability of the complex of enterprises in a region should be integrated into the strategic management system at the federal and regional level.

scholarly journals Purchases for corporate needs in Russia’s regions in 2019

2020 ◽  
Vol 8 (1) ◽  
pp. 27-35
Author(s):  
Iuliia Pinkovetskaia ◽  
Anton Lebedev ◽  
Elena Sverdlikova
Keyword(s):  
Economic Development ◽  
Normal Distribution ◽  
Small Businesses ◽  
Geographical Location ◽  
Relevant Information ◽  
Small Enterprises ◽  
Evaluation Functions ◽  
State Participation ◽  
Level Of Economic Development ◽  
Regions Of Russia

Objective. To consider the indicators that characterize purchases for the needs of large corporations with state participation in the regions of Russia. Methodology. The study uses relevant information for 82 regions of Russia. The methodology of the research base on evaluation functions density of normal distribution volumes of contracts on regions. Results. The results of research are calculation of four indicators’ values that demonstrate the regional aspects of procurement for corporate needs, including the contracts signed by small businesses or with their participation. Conclusions. It was proved that averageshare of the contracts with small enterprises is about 20 %; the value of every indicator is significantly varied in different regions of Russia. The article confirms the lack of connection between the values of each indicator and such factors as the level of economic development of regions and their geographical location.

High-tech business in crisis conditions: development trends of large, medium and small enterprises

2020 ◽  
Vol 18 (4) ◽  
pp. 48-58
Author(s):  
Vladislav V. Spitsyn ◽  
Alexander A. Mikhal'chuk ◽  
Anastasia A. Bulykina ◽  
Svetlana N. Popova ◽  
Irina E. Nikulina
Keyword(s):  
Small Businesses ◽  
Negative Impact ◽  
Service Industries ◽  
High Tech ◽  
Small Enterprises ◽  
Mathematical Methods ◽  
Crisis Period ◽  
Knowledge Intensive ◽  
Crisis Conditions ◽  
Medium And Small Enterprises

Leading world countries view innovative development and high-tech business as an opportunity to overcome economic stagnation and decline in economic growth. One of the modern trends in the analysis of high-tech development is the study of high-tech knowledge-intensive service industries and their development in times of crisis. The purpose of the paper is to identify patterns of development of large, medium and small enterprises in high-tech service industries in Russia during periods of crisis. Economic and economic-mathematical methods of analysis are applied to the formed samples of enterprises. The research period is 2013-2017. The financial indicators of enterprises were adjusted for the level of accumulated inflation in relation to 2013. According to results, large and medium-sized enterprises showed insignificant or weak significant positive dynamics of revenue during all years of the crisis period. The crisis period did not lead to a decrease in the revenue of these groups of enterprises. The acute phase of the crisis (2014-2015) had a pronounced negative impact on the group of small enterprises in all studied industries, but they successfully recovered in 2016-2017 and reached the pre-crisis level of revenue. The total revenue by industries and groups of enterprises in 2017 became higher than in 2013, and its growth rates were significant for many groups of enterprises, which indicates a successful overcoming of the crisis period and signs of growth in high-tech service industries. Our study shows the need for state support for small businesses in high-tech service industries in crisis conditions, and identifies the possibilities of adaptation of enterprises in these industries to an unfavorable external environment. Our results may be useful for the purposes of government stimulation of economic development in the current environment.

scholarly journals SPECIAL SYSTEM REGIMES OF TAXATION IN THE FORMATION OF INVESTMENT POTENTIAL BY SMALL BUSINESSES: PROBLEMS AND PROSPECTS

2020 ◽  
pp. 6-18
Author(s):  
И.А. Журавлева
Keyword(s):  
Economic Policy ◽  
Economic Development ◽  
Small Businesses ◽  
Multiple Regression Model ◽  
Economic Activities ◽  
The Subject ◽  
Tax Reporting ◽  
Regional Budgets ◽  
The Impact ◽  
Regions Of Russia

Рассматривая инвестиционный аспект в срезе применения специальных системных режимов налогообложения (ССРН) субъектами малого предпринимательства (СМП) в регионах, необходимо отметить актуальность данной проблемы. Стратегическими задачами экономической политики страны является выравнивание уровней развития регионов России и выполнение национальных проектов в стране. Налоговый потенциал, являясь комплексным макроэкономическим потенциалом каждого субъекта федерации, содержит в себе не только показатели финансово-экономического развития, но и инвестиционную привлекательность. Системность специальных режимов налогообложения хозяйственной деятельности СМП играет свою финансовую роль как в формировании бюджетов регионов, так и инициируя инвестиционную привлекательность в субъект, имея в своем ресурсе преференциальную основу минимальных налоговых баз и ставок, упрощения процедур администрирования и налоговой отчетности. Предложена авторская множественная регрессионная модель, показывающая влияние применения малым бизнесом ССРН на инвестиционную привлекательность в регионе. Considering the investment aspect in the context of the application of special systemic taxation regimes (SSTR) by small businesses (SMEs) in the regions, it is necessary to note the urgency of this problem. The strategic tasks of the country's economic policy are to level the levels of development of the regions of Russia and the implementation of national projects in the country. Tax potential, being the complex macroeconomic potential of each constituent entity of the Federation, contains not only indicators of financial and economic development, but also investment attractiveness. The systematic nature of special taxation regimes for the economic activities of the SMEs plays its financial role both in the formation of regional budgets and in initiating investment attractiveness in the subject, having in its resource a preferential basis of minimum tax bases and rates, simplification of administration procedures and tax reporting. The author proposes a multiple regression model showing the impact of small business use of the SSTR on the investment attractiveness in the region.

scholarly journals Competitiveness of Small Enterprises in the Modern Economy

2019 ◽  
Vol 7 (14) ◽  
Author(s):  
Iuliia Er. Dudnieva ◽  
Olha Ol. Kovalenko
Keyword(s):  
Economic Development ◽  
Small Businesses ◽  
External Environment ◽  
Business Environment ◽  
Small Enterprises ◽  
Advantages And Disadvantages ◽  
Modern Economy ◽  
Socio Economic Development ◽  
Business Entities

The article considers the place and role of small enterprises in the economic system, their impact on socio-economic development based on the functions that small business entities implement. The aim of the research is to study the preconditions for the competitiveness of small enterprises in the modern economy, to determine the advantages and disadvantages of small businesses taking into account the characteristics of the external environment. The authors examined the main trends in the development of the world economy, which are factors influencing the functioning of small enterprises, namely the participation of small businesses in global competition, the complexity of management systems of small enterprises, the general informatization of the economy, the emergence of highly specialized market niches, etc. It is proved that the competitiveness of small businesses is based on the negative “economies of scale” and relative competitive advantages in ensuring adaptation to changes in the business environment, customer focus, and low transaction costs. The basic economic, technological and social factors affecting the competitiveness of small businesses are identified.  The advantages and disadvantages of small enterprises in Ukraine are formulated. As one of the main disadvantages, the shortage of various resources that small enterprises encounter is highlighted, this is why it is effective cooperation with external contractors to overcome resource constraints that is considered as the main factor influencing the results of operations. The competitiveness of a small enterprise is largely determined by its competencies in interaction with the subjects of the external environment. To study the trends and prospects for the development of small enterprises in Ukraine, the authors analyzed the main indicators of the activities of business entities using official statistical information. The share provided by small enterprises in the results of socio-economic development of the country is calculated.  Conclusions are made regarding the place and role of small enterprises, their development trends, problems are identified that require attention from the state, and further scientific and practical solutions.

SUPPORTING THE DIFFUSION OF INNOVATIONS IN SMALL AND MEDIUM ENTREPRENEURS

2017 ◽  
Author(s):  
Yuliia Horiashchenko ◽  
Keyword(s):  
Diffusion Of Innovation ◽  
Small Businesses ◽  
Diffusion Of Innovations ◽  
Innovation Process ◽  
Information Support ◽  
Small Enterprises ◽  
Categorical Analysis ◽  
The Difference ◽  
And Cluster Analysis ◽  
Medium And Small Enterprises

This article draws a parallel between the diffusion of innovation and the level of profitability of Ukrainian enterprises. The conceptual and categorical analysis of the term “diffusion of innovations” is carried out. The basic principles of innovative solutions are indicated as the basis for information support of innovative activities. These principles include: the natural nature of innovation, analytical solutions, validity, voluntariness, partnership between all participants in the innovation process. It is emphasized that non-observance of these principles makes it impossible to make a voluntary or collective decision and presupposes the adoption of an undesirable innovative decision for enterprises, which, unlike a collective one, is made not by the social system, but by a group of people with influence or power. Shown are regional disparities in terms of profitability (loss ratio) of large, medium and small enterprises in 2015-2019. The difference between the level of profitability of large, medium and small enterprises by region is due to regional imbalances in social, economic, environmental and political and legal development. Separately, a comparison was made of all economic regions for a deeper understanding of the country's innovative potential and cluster analysis in further scientific research. It is emphasized that it is the profitable activity of enterprises that is the first step towards innovation. The calculations showed the level of readiness and ability of citizens to do business in the country. A fuzzy relationship has been established between the profitability of Ukrainian enterprises and their innovative activities. The main problem for small and medium-sized businesses in Ukraine, as well as for businesses in European countries, is the inaccessibility of digital production and distribution solutions. The German experience of diffusion of innovations in small and medium-sized businesses was studied, in particular, the attraction of German small businesses to digitalization. Based on the study of foreign experience, a strategic task for Ukrainian small and medium-sized businesses is outlined.

scholarly journals Does Privatization In Transitional Countries Influence Enterprise Efficiency Growth: A Case Of Croatia And Slovenia

2011 ◽  
Vol 4 (2) ◽  
Author(s):  
Neda Vitezi?
Keyword(s):  
Small Business ◽  
Small Businesses ◽  
Early Years ◽  
Small Enterprises ◽  
Transitional Countries ◽  
Business Efficiency ◽  
Macroeconomic Indicators ◽  
Countries In Transition ◽  
The Impact ◽  
Medium And Small Enterprises

This paper explores the impact of privatization on the efficiency growth of enterprises in two transitional countries, which did not follow the same privatization model. The aim of this research is to analyze the effects of privatization on micro and macroeconomic indicators. Research will be based on ten-year time-series analysis, using both financial and other indicators. Particular emphasis will be placed on efficiency and profitability growth by analyzing separately large, medium, and small enterprises. The expressed hypotheses, which will be tested through statistical data analysis, are related to the statement that the privatization model utilized did not contribute to the efficiency of the entire economy. However, it did contribute to the efficiency of particular segments of enterprises. The second hypothesis is that the recent growth of small business efficiency will decrease while medium and large enterprise efficiency will increase. Finally, the third hypothesis is related to the impact of enterprise performance in ten years period on macroeconomic indicators. The development of small business in both countries in the early years of transition will be examined. During this time of period, small businesses tended to experience more efficiency growth than other enterprises. However, there currently appears to be a shift in efficiency and profitability growth to medium and large enterprises. Therefore, another aim of this research is to determine what factors may have caused these differences and lead to the opinion about future efficiency growth in countries in transition.

scholarly journals SMALL ENTERPRISES: KEY SOURCE OF EMPLOYMENT AND ECONOMIC GROWTH

2016 ◽  
Vol 1 (11) ◽  
pp. 63
Author(s):  
Tihomir Spremo ◽  
Jelena Mićić
Keyword(s):  
Economic Growth ◽  
Economic Development ◽  
Economic Crisis ◽  
Small Businesses ◽  
Small Firms ◽  
Business Environment ◽  
Small Enterprises ◽  
The Subject ◽  
The Republic

Small enterprises, within the market economy, are initiators of economic development and an important part of every national economy. Due to the nature of private property, entrepreneurial spirit, flexibility and adaptability, as well as their potential to react to the challenges and turbulences in the environment, small businesses give a special contribution to economic growth and higher employment. Entrepreneurship and small business represent a significant and fundamental source for creation of new jobs and expansion of new business practices by providing a significant contribution to economic growth. This applies both to small businesses in the Republic of Srpska and the ones that are located anywhere in the world. The role of small enterprises is especially important in transition countries. During the global economic crisis, small businesses have, both in developed economies, and in the Republic of Srpska and BiH as a whole, proved to be resilient, although this period was characterized by a very poor business environment. The importance of entrepre-neurship and small firms in developing national economies are often the subject of professional and empirical discussion. However, recent developments have further confirmed the views that small businesses, in dealing with all the negativities of poor business environment in times of crisis, more quickly adapt to changes compared to larger enterprises and companies. This quality of small enterprises gives enough reason to pay special attention to the theoretical and practical aspects of this phenomenon, in order to make appropriate business decisions and implementation of development policy as a more efficient model for faster economic development of the national economy. The subject of this paper is to define the importance of small businesses in the economic growth of developed and developing countries. Through researching analyses, this paper examines the role and importance of small enterprises in economies of the European Union (EU) member states and the Republic of Srpska and BiH, especially regarding its influence on the employment growth and added value in a period of economic crisis and post-crisis years. This paper aims to explore and emphasize the interdependence between growth of small firms and new added values, reviewing economic development and employment in both developed and economies in transition. This paper attempts to present the importance of effects of analyzed economic indicators as a result of small enterprises in two separate periods (the period of global crisis and post-crisis period) and provide guidance and recommendations to policy makers on economic role of small firms in macroeconomic stability of the economy.

scholarly journals TO THE QUESTION OF IMPROVING THE METHODOLOGY OF FORECASTING BANKRUPTCY SMALL BUSINESS

2020 ◽  
Vol 7 (9(78)) ◽  
pp. 36-41
Author(s):  
E. Ivanova
Keyword(s):  
Economic Development ◽  
Small Businesses ◽  
Social Economic ◽  
Federal District ◽  
Small Enterprises ◽  
Conceptual Approach ◽  
Dialectical Approach ◽  
The Social ◽  
Analysis And Synthesis ◽  
Social Economic Development

The aim of this paper is to identify the possibilities of applying of existing models for estimation of the probability of bankruptcy in domestic and foreign practice to predict the risk of default of small enterprises. The relevance of this research is due to the role the small businesses play in the social-economic development of regions and the country as a whole. The relationship between individual indicators of the region’s social-economic situation and the level of bankrupt enterprises in the total number of enterprises is shown. The differentiation of Russian regions in terms of social-economic development (in Siberian Federal district as an example) are demonstrated, the desirability of including of regional factor in model of bankruptcy forecasting is highlighted. Based on the dialectical approach, comparison, abstraction, analysis and synthesis, a conceptual approach to creation of logistic regression model for predicting the bankruptcy of small enterprises is described.

Financial Systems and economic Development in the Russian Regions: A Comparative Analysis

2015 ◽  
pp. 94-108 ◽  
Author(s):  
K. Krinichansky
Keyword(s):  
Economic Development ◽  
Comparative Analysis ◽  
Financial Development ◽  
Public Debt ◽  
Fixed Capital ◽  
Russian Regions ◽  
Growth Mechanisms ◽  
Financial Systems ◽  
Debt Market ◽  
Regions Of Russia

The paper identifies and assesses the closeness of the connection between incremental indicators of the financial development in the regions of Russia with the incremental regional GDP and the investment in fixed capital. It is shown that the positioning of the region as an independent participant of public debt market matters: the regional GDP and investment in fixed capital grow more rapidly in the regions which are regularly borrowing on the sub-federal bonds market. The paper also demonstrates that the poorly developed financial system in some regions have caused the imperfection of the growth mechanisms since the economy is not able to use the financial system’s functions.

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