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Small Business and the Competitiveness of Russia: An Unconventional View

Author

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  • Chigrin, A.

    (NIIMorgeophysika-Service Ltd, Murmansk, Russia)

Abstract

Support for small and medium-sized enterprises (SME). is an important component of the economic policies of developed countries. In Russia, it is also expected to help economic diversification and switching to "innovative path of development". The paper analyzes the three main issues underlying the SME support policies: the question of the sufficiency of the sector in Russia and the need for its further growth, relation between the level of the sector's development and the overall economic performance, and its effect on the innovative potential of the economy. Insufficiency of development is not confirmed. The key role of SMEs in the growth of overall efficiency and innovative orientation of the economy is also not confirmed. The analysis shows that SME support can not solve the tasks for which this policy is carried out. Moreover, it creates new imbalances. Attention is drawn to the presence of factor advantages and their influence on the development of individual small business sectors. The assumption is made that the differences between the properties and the role of the Russian SMEs from the similar sector of the developed countries are due not to the lack of state support, but to the continuation of the general macroeconomic problems of the domestic economy.

Suggested Citation

  • Chigrin, A., 2018. "Small Business and the Competitiveness of Russia: An Unconventional View," Journal of the New Economic Association, New Economic Association, vol. 39(3), pages 110-126.
    • Handle: RePEc:nea:journl:y:2018:i:39:p:110-126
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    References listed on IDEAS

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    1. A. Biryukov., 2004. "Development of Small and Medium Business - the Locomotive of the Economy," VOPROSY ECONOMIKI, N.P. Redaktsiya zhurnala "Voprosy Economiki", vol. 9.
    2. Chepurenko, A., 2012. "What is Entrepreneurship and What Entrepreneurship Policy Does Russia Need? (Marginal Notes on Works of Modern Foreign Classics)," Journal of the New Economic Association, New Economic Association, vol. 14(2), pages 102-124.
    3. Виленский Александр Викторович, 2004. "Особенности Российского Малого Предпринимательства," Higher School of Economics Economic Journal Экономический журнал Высшей школы экономики, CyberLeninka;Федеральное государственное автономное образовательное учреждение высшего образования «Национальный исследовательский университет «Высшая школа экономики», vol. 8(2), pages 246-256.
    4. Scott Shane, 2009. "Why encouraging more people to become entrepreneurs is bad public policy," Small Business Economics, Springer, vol. 33(2), pages 141-149, August.
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    Cited by:

    1. Obraztsova, O. & Chepurenko, A., 2020. "Entrepreneurial activity in Russia and its cross-regional differences," Journal of the New Economic Association, New Economic Association, vol. 46(2), pages 198-210.

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    More about this item

    Keywords

    small and medium-sized enterprises; competitiveness; efficiency; scienceintensive; innovative development; factor advantages;
    All these keywords.

    JEL classification:

    • L16 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Industrial Organization and Macroeconomics; Macroeconomic Industrial Structure
    • M38 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Marketing and Advertising - - - Government Policy and Regulation
    • O20 - Economic Development, Innovation, Technological Change, and Growth - - Development Planning and Policy - - - General
    • O38 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Government Policy

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