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Small businesses in Russia


Английский язык

Страниц: 26
Автор: Юлия
1640  руб.
A successful post-communist economic restructuring in Russia is driven by growth of private firms, which make up for the contraction of output of traditional enterprises. The shares of employment and output of the latter invariably decline as a result of correction of structural distortions left by central planning, closures of enterprises unable to sustain themselves under market conditions, disorganization of exceedingly complex and often unsustainable inter-enterprise links, and the possibility to divert inputs from the state-owned sector of the economy in search of higher return. These processes result in the transitional recession. The economy recovers when the nascent private sector picks up and becomes an engine of the subsequent economic growth (see e.g. Murrell, 1992). Vigorous development of the private sector shortens the recession, speeds up recovery, and reduces the social costs of transition by creating new jobs and generating market income for the labor released from traditional firms.
The most dynamic and vibrant part of the newly emerging private sector are small and medium enterprises. They are the first to respond to market signals and fill numerous niches left by the central planning, notorious for its rigidity and lack of attention to consumer demand. At the same time, small and medium firms give a natural outlet for heretofore suppressed entrepreneurial energy. Smaller firms usually can be created with limited resources, and in particular with minimal start-up capital This is an important factor, given the lack of private wealth at early stages of transition, and reluctance of potential lenders to extend large loans to borrowers with no track records. Finally, small businesses form a natural constituency for the competitive market economy, and also contribute to the formation of a middle class which stabilizes the society and serves as a bulwark against political extremism. Therefore the SME sector could play an important and positive political role in the post-communist transition. That’s why the theme of this paper is acute.
The major goal of the paper is to determine the role and perspectives for small businesses in Russia.
Introduction 3

1.The role of small businesses in Russia 5

2.Effectiveness and efficiency of small businesses 9

3.Problems and obstacles of small businesses 12

4. Government policy for small businesses development in Russia 19

Conclusions 24

References 26

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3.Bardhan, P. Corruption and Development: A Review of Issues. Journal of Economic Literature, v. 35, n 3, 2007, pp. 1320-1346.
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11.Glisin, F., and S. Rogachevskaya. Main Trends In Actual and Expected Commercial Activities of Small Businesses in Industry, Construction, and Retail Trade. (In Russian). Voprosy Statistiki, No. 7, 2008, pp. 24-39.
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13.Impediments to Small Business Development in the Russian Federation. Mimeo, 2009.
14.Informal Sector in the Russian Economy (in Russian). Institute for Strategic Analysis and Entrepreneurship, Moscow, 2008.
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17.Murrell, P. Evolution in Economics and in the Economic Reform of the Centrally Planned Economies. In: The Emergence of Market Economies in Eastern Europe. Cambridge, Blackwell, 2002.
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