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Journal section "Territorial economy"

TO ASSESSMENT OF THE SMALL BUSINESS DEVELOPMENT LEVEL IN MUNICIPALITIES

Kremin A.E.

8 (28), 2015

Kremin A.E. TO ASSESSMENT OF THE SMALL BUSINESS DEVELOPMENT LEVEL IN MUNICIPALITIES. Territorial development issues, 2015, no. 8 (28). URL: http://vtr.isert-ran.ru/article/1631?_lang=en

Abstract   |   Authors   |   References
The need to ensure sustainable socio-economic development of municipalities requires the efforts of local governments aimed at developing their operational and financial bases of territories, which will increase the level of their economic independence. The creation of conditions for small business revitalization is one of the most important tasks in this direction. The development of small businesses creates preconditions for accelerated economic growth, boosts diversification and saturation of local markets, however, helping compensate costs of the market economy (unemployment, fluctuations and crises). The effective organizational and management system and the necessary means of production are not always a sufficient condition for the successful development of small business at the municipal level. As a rule, the meaningful role in this process is played by external factors of business environment, such as macroeconomic conditions, general market characteristics, available resources (production, financial and staffing), and administrative barriers. Most of the external factors are influenced by the municipal authorities, the measures directed to support small business. To effectively manage this economical sector it is necessary to conduct adequate estimation of small businesses functioning at the municipal level. The article presents the main trends of small business development in municipalities, identifies municipal formations with the highest and the lowest level of small business development on the materials of the Vologda Oblast. The research reveals that the recent years have been characterized by reduced territorial disparities in the level of small business development and deteriorated conditions affecting the development of entrepreneurial activities in the Vologda Oblast. The article can be used to evaluate the effectiveness of measures to support small enterprises in the region and to determine further strategy actions of regional and municipal authorities to develop small business

Keywords

municipalities, small entrepreneurship, small business, typology