THE PROBLEMS OF SMALL BUSINESS IN RUSSIA - Студенческий научный форум

XIII Международная студенческая научная конференция Студенческий научный форум - 2021

THE PROBLEMS OF SMALL BUSINESS IN RUSSIA

Васильева С.А. 1, Ермолаева Л.Д. 1
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Abstract: The article examines what small business represents in general, its role and place in the country's economy, and its problems in Russia. On the basis of this research the conclusions concerning the most significant directions of the state policy to support small businesses have been made.

Key words: entrepreneurship, business, economy,problems of small business,business in Russia, small business.

«The entrepreneur is always looking for changes, responding to them and using them as an opportunity»

(Peter Drucker)

What is a small business? It is considered that a small business is a set of small businesses engaged in entrepreneurial activities. According to the law «On the development of small and medium-sized businesses» adopted in 2007 by the State Duma of the Russian Federation, micro enterprises are recognized as companies with no more than 15 employees.

The share of small businesses in GDP in our country is about 20 %, while abroad it is 50 %. In developed countries, supporting small - scale enterprises is an extremely important task for economic development. The rate of growth in the number of registered small businesses in our country remains low — their number increases by 4% annually, while the number of discontinued operations increases by 11 %. The fact is that small businesses in Russia face serious problems in their activities.

Today, the problem of small business in Russia is relevant. In times of crisis, the country needs entrepreneurs who take an active part in public life. Small businesses are quite mobile in the market system. It also provides a competitive atmosphere and pays off quickly. Competing with each other, entrepreneurs are forced to constantly progress and develop. As a result, the quality of goods and services rises to a high level.

In this article, I decided to consider the problems that hinder the rapid development of small businesses in Russia. And also why small businesses abroad are better developed than in Russia.

What is the first thing a person who decides to open a business will face? The main problems hindering the development of small business in our country include the following:

Constant lack of funding.

Given the current economic situation, the difficulties associated with the high cost of financial resources and strict requirements for borrowers have become a priority for small businesses. The majority of the population, living in conditions of extreme lack of funds, could not form the reserve necessary to start their own business. These funds must be found now. It is clear that the extremely tight state budget cannot become such a source of funds. We can only hope for credit resources. But banks in our country, as a rule, are not willing to approve loans for start-up entrepreneurs. The reason for this is the high risk and the inability of the organization to replace credit funds.

Instability of the legislation.

An example of this is the adoption of a number of regulatory decisions in 2013-2014 that introduce additional requirements and increase the financial burden on small businesses. First of all, we are talking about changes in the tax sphere – the introduction of a trade fee, an increase in the fixed insurance payment for individual entrepreneurs.

A large volume of adopted regulatory legal acts leads to a "clutter" of legislation, the appearance of poorly developed, contradictory and unbalanced decisions and, as a result, negatively affects the entrepreneurial initiative and the dynamics of small business development.

Insufficient professionalism of the personnel

In Russia, there is an insufficient level of professional training for business organizers.

Excessive tax pressure on small businesses.

A huge number of approvals and permits require time, effort and costs to obtain them, if the entrepreneur is not able to prepare the necessary documents. As for taxation, it makes it impossible to form the necessary working capital reserves in time, while the main part of the company's funds is spent on paying tax obligations.

Shortcomings in the system of administrative and legal regulation

The system of administrative and legal regulation in certain industries and spheres remains unfriendly to small organizations and does not take into account the specifics of doing business in small business forms. Combined with a high level of fiscal burden, these obstacles prevent small businesses that are at the initial stages of activity from expanding the market for products, increasing business profitability, and thus ensuring the company's transition to medium or large businesses.

The problem of access to public procurement.

It is no secret that the needs of the state are specific, and meeting some of them is possible only through the efforts of small businesses, since small government orders are not interesting for large enterprises. And for small businesses, this is an opportunity to reach the desired capacity. But there are frequent cases of implementation of corruption schemes. As a result, small companies cannot win the tender even for the smallest state order.

Of course, the main problem of all the above is the problem of establishing the relationship between small business and the state.

All of the above and other problems are the reasons of the lack of noticeable dynamics in the development of small business in Russia. They also indicate that there are certain obstacles limiting the implementation of large potential opportunities for small business development available in the country.

Although, a multi-channel system of financial support for small and medium-sized businessesassuming significant state investments has been recently formed at the Federal level, the level of development of small businesses and their contribution to economic indicators leaves much to be desired. Moreover, in recent years, the performance of small and medium-sized businesses has shown a negative trend.

Thus, small business is a very promising sector in the Russian economy. Without it, it is impossible to implement an economic growth strategy. By creating favorable conditions for the development of small businesses in Russia, it is possible to rapidly raise the economy of our country in a very short time. This is why it needs to be supported, especially in the current difficult situation.

Literature:

Problems of small business in Russia // Modern scientific researches and innovations. 2015. № 9. P. 1 [Electronic journal]. URL: http://web.snauka.ru/en/issues/2015/09/57616

Shestakov R.B. O gosudarstvennoy politike podderzhki malogo biznesa v usloviyakh globalnogo finansovogo krizisa – Rossiyskoe predprinimatelstvo. 2009. No 2. p. 27-33.

Nesterenko E. A., Kozlova A. S. Main parameters of the dividend policy / / Financial Analytics: problems and solutions. 2015. No. 39 (273). P. 10-20.

Alexandrin Yu. n. Institutes and tools for forming an effective system of state incentives for small businesses: the US experience / / Society: politics, Economics, law. - 2015. - №. 1. P. 121

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