Government Support of Small Business in Russia
The paper deals with the development of the entrepreneurship and SME policy support agenda in some CEE and CIS countries in the process of systemic transition, basing both on desk research and the results of an own expert survey in 14 countries. Th e author points out the initial diff erences of the socio-economic context of SME policy in transitional societies from the very beginning of the systemic transition and emphasizes the role of the framework rules and regulations of the EU in the establishment of the appropriate policy in the CEE countries. He shows both similarities as well as peculiarities in the design of the SME policy in 14 Post-Socialist economies. Taking the experience of the CEE and CIS countries with very diff erent framework conditions and economic performance, the paper transfers some obtained evidence into the Russian context, offering a re-conceptualization of the established entrepreneurship and SME policy towards a more stringent consideration of both framework conditions and the state of the SME on the regional level.
The article analyzes the focus and effects of the main tools to support industrial enterprises in Russia: direct budget financing, tax relief, support of state development institutions. Based on the analysis of empirical data at the micro-level, we consider a typical “portrait” of the company — the recipient of state support. The main effects in the activities of companies that have received it are analyzed. We demonstrate that, on the one hand, resources are being allocated to innovative companies, exporting companies. On the other hand, there is a bias of state support to large companies, state-controlled firms, companies, oriented at the public sector. The latter may result from the less innovative activity of private companies (which, most likely, is a consequence of the worsened business climate), as well as to their caution in using state support due to the associated risks. All tools of state support contribute to the growth of company revenue, but at the regional level, support is more related to the task of stabilizing employment and preserving the output of products purchased by the state. We have revealed the most positive changes in companies that have received support from state development institutions. Tax incentives are a tool opened to “young” firms, for companies introducing innovative products that are new to the world — in this sense, they are complementary to other instruments and are essential for the formation of a holistic ecosystem.
The problems of social and economic development of Siberia and the Far East are discusses in article. The analysis and evaluation of the federal government activities in development and implementations of plans for the Siberian and Far Eastern territories development are conducted. The article shows the unjustified transformation of the development basic tools (dissemination of TPD ideas throughout the country and others) and delaying already prepared decision-making processes (funds and other development institutions establishment).