Strategies of the Development of Entrepreneurship and SME
Strategies of the Development of Entrepreneurship and SME
Strategies of the Development of Entrepreneurship and SME
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4.4 RUSSIATable 15.Dimensions Negatively affecting Positively affecting SuggestionsDemographic • Aging <strong>of</strong> <strong>the</strong> population• Population decline ingeneral• Intensive urbanization(negative for agriculturalbusinesses)• Large number <strong>of</strong>immigrants• Immigration is almoststopped• Intensive urbanization(concentrated dem<strong>and</strong>for <strong>the</strong> services <strong>and</strong> <strong>SME</strong>products)• State policy tosupport <strong>of</strong> a populationgrowth (already inplace)Socio-cultural • Not friendly to <strong>SME</strong>sector employeesretirement <strong>and</strong> health caresystems• Less uncertaintyaccepting than Ukrainians,<strong>and</strong> MoldaviansPolitical/legal • Closeness <strong>of</strong> Chechnyato <strong>the</strong> Black Sea Region• Still weak institutional“diffusion”• Low level <strong>of</strong> advantagesfor <strong>SME</strong> businessesproclaimed in <strong>the</strong>legislative system• Strongest lobbing <strong>of</strong>large companies’ interestsagainst <strong>SME</strong> sector• Increasingcentralization <strong>of</strong> politicalpower• Underestimation <strong>of</strong> <strong>the</strong><strong>SME</strong> role in <strong>the</strong> economyby politicians• Corruption <strong>and</strong> lowtransparency <strong>of</strong> legislativesystem• Complex relationshipwith <strong>the</strong> neighbouringcountries• Highly educated labour • Correction <strong>of</strong> <strong>the</strong>medical care system<strong>and</strong> retirement plansfor self-employed <strong>and</strong><strong>SME</strong> employed people• Political <strong>and</strong>administrative stability• Legislative base forsuccessful <strong>SME</strong>development is created<strong>and</strong> is continuouslyimproving• Multiple <strong>SME</strong> regionalassociations all overRussia• Funds <strong>and</strong> stateprograms <strong>of</strong> financing<strong>SME</strong> needs• Increasing attention to<strong>the</strong> system <strong>of</strong>monitoring <strong>and</strong>legislative control• Fight againstcorruption began• Diversify financialopportunities for <strong>SME</strong>sector• The high priorityshould be given tocooperation <strong>SME</strong>development projectswith <strong>the</strong> neighbouringcountries in <strong>the</strong> BlackSea Region• Stimulate on <strong>the</strong>state level <strong>the</strong>development <strong>of</strong> <strong>the</strong><strong>SME</strong> businessinfrastructure(associations,foundations, funds,consortiums, <strong>and</strong>strategic alliances)• Develop electronicsubmission for <strong>the</strong>majority <strong>of</strong> documentsfor <strong>SME</strong>; <strong>and</strong> afeedback e-system foreach <strong>of</strong>ficial to avoidcorruption <strong>and</strong> briberiesMacroeconomic • Part <strong>of</strong> <strong>the</strong> formercentrally planned economy• Over-concentration <strong>of</strong><strong>the</strong> former SU economyresulted in <strong>the</strong> lack <strong>of</strong> astate attention to <strong>the</strong> <strong>SME</strong>in <strong>the</strong> recent past sectorproblems• Shadow economy• The economy heavilydepends on gas <strong>and</strong> oil• Middle income country• GDP growth• Financingopportunities for <strong>SME</strong>are slightly growing• Positive image <strong>of</strong> anattractive zone (BlackSea Region) forinternationalinvestments will benefita lot from <strong>the</strong> Sochi• Develop favourable<strong>and</strong> transparenttaxation system for<strong>SME</strong> sector• Attract FDI flow to<strong>the</strong> <strong>SME</strong> sector byannouncinginternational tenders<strong>and</strong>/or nationalprograms77
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