CC BY
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УДК 2964
Babakhanova B.M.
1a Masters degree Student Faculty of Economics, Dagestan State University
Russia
STATE SUPPORT OF SMALL AND MEDIUM BUSINESS IN THE
RUSSIAN FEDERATION
Abstract:
This article is devoted to topical issues of supporting small and medium-sized businesses. The features of the interpretation of this concept, the structure of the state support system, as well as the positive and negative sides are presented. It was noted that the policy of supporting small enterprises with the potential for growth promotes their transition to medium business, which generally has a positive effect on the inflow of investments.
Keywords: small business, medium business, investments, state support, entrepreneurship
The development of small and medium businesses is a necessary condition for the country's successful development. Many authors use the term "small business", which is a private enterprise based on an entrepreneurial idea and is at high risk. According to them the goal of a private business establishment is to obtain maximum profit.
Small business is an institution providing employment for a population, in which small companies create the living environment more comfortable and convenient. 1
Over the past decade, Russia has formed the basis of state support for small businesses that has already been generally accepted in developed countries. However, difficult economic conditions of management and existing problems of small business development have shown that measures of the state support are not efficient. In this regard, further development and improvement of the entire system of state support for small business are required for the successful development of small business in Russia.
The term "small business" has several interpretations and is considered from different points of view. It should be noted that studying the foreign terminology, the term "small and medium-sized enterprise" is widely used in the EU, and "small and medium business" - in the USA.
Currently, in the system of state support for small and medium-sized business is included the following:
1) government regulations focusing on development and support of medium and small enterprise;
2) a state apparatus, as a set of state institutional structures responsible for development of small business, implementing state policy in this sphere and
1 Kosheleva T.N. «The essence and significance of small business» SPb: GUAP, 2009
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regulating small business.
3) a state infrastructure for supporting small business, including noncommercial and commercial organizations formed with or without participation of the state, whose activities are initiated, encouraged and supported by the state, and designed to implement a system of state support aimed at the development of small businesses.
State support for small businesses is aimed at reducing the riskiness of small business. Insecurity of resources forces the state to support small business in the following basic directions:
1. Financial support that is carried out through the formation of state programs that provide preferential loans to small businesses, tax and depreciation benefits, subsidies, etc.
2. Material and technical support, the essence of which is revealed in the creation of technology parks, various forms of providing technology and equipment for the rental of small businesses.
3. Advisory and information support providing access to databases, technical libraries, provision of advisory and legal services, especially on issues of creation, management, taxation.
4. Formation of market infrastructure. For example, local fairs, equipment and technology markets for small firms, markets.
For January 1, 2016, according to the Federal state statistics service in the Russian Federation, 5.6 million small and medium-sized businesses were registered, with every fourth resident of the country. These subjects manage 25% of the total population in the economy and account for about 25% of the total turnover of products and services produced by enterprises throughout the country. And it should be noted that with each year the subjects of small and medium-sized businesses are growing. 2
The key problem of small enterprises is the lack of financial resources on its life cycle. In this regard, an entrepreneur must continuously determine the needs of business and be able to use effectively the progressive methods of financial management.
The financial policy of a small enterprise is a purposeful use of financial resources to achieve long-term and short-term goals. A financial management of enterprise is determined and carried out through financial relations and mechanisms.
A business development strategy is directly related to the stage of its development. The policy of supporting small businesses with growth potential promotes their transition to medium-sized businesses. In practice, even the most successful small businesses do not or can not leave the legally delineated boundaries of small businesses due to both high costs of transition from one category to another one, and the absence of any special regimes that help beginners to gain a foothold in the average business. For a small enterprise, an
2 Federal State Statistics Service URL: www.gks.ru/wps/wcm/connect/ rosstat main/rosstat/ru/statistics/enterprise/
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alternative to growth "vertically" is the growth "horizontally" - a creation of a network of small enterprises that form together a single business of one or a group of owners.
Network small enterprises, more profitable and resistant to unfavorable changes in the business environment, have a higher investment, innovation and export potential.
It is networked small enterprises that have a real potential for transition to medium-sized businesses. Along with the lack of elaboration of the legislative and regulatory framework for medium-sized enterprises, additional problems, typical for larger business and, correspondingly, additional costs for their solution keep networked small enterprises. The main of these problems are business security, unfair competition, customs procedures, obtaining and registration of land plots.3
Over the past few years, there is a tendency and proportion of transition from a small enterprise to a networked small enterprise (about a third of entrepreneurs simultaneously own or run several enterprises). The significant effect of this policy is evidenced by the scale of demand for government policies supporting medium-sized businesses and the economic potential of the small business's network segment.
And in conclusion, I would like to offer some recommendations touching on a wide range of issues related to business. In order to develop educational entrepreneurs training, it is proposed to ensure the development of specialized educational programs, including for primary and secondary schools, aimed at developing entrepreneurial abilities.
In order to involve young people in the sphere of small and medium-sized business, it is proposed to study the issue of implementing an independent state program to support small business.
Thus, in order to improve the effectiveness of the implementation of government support measures. It is proposed to work out the issue of establishing a state institution for the development of small and medium businesses, with the institution of such an institution with the functions of creating a single center for financial and credit support for small and medium businesses, eveloping programs for the integration of small and medium enterprises in chains of suppliers of large state-owned companies, coordination of activities of organizations that support the subjects of small and medium-sized businesses, the implementation of system projects to promote entrepreneurship
Bibliography:
1. Kosheleva T.N. «The essence and significance of small business» SPb: GUAP, 2009
2. Federal State Statistics Service URL: www.gks.ru/wps/wcm/connect/ rosstat main/rosstat/ru/statistics/enterprise/
3. SCI-ARTICLE URL:http://sci-article.ru/stat.php?i=1416737297
3 SCI-ARTICLE URL: http://sci-article.ru/stat.php?i=1416737297
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