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Reconsidering Long-term Trends in the Development of Small and Medium-Sized Enterprises in Russia and the Regions in the post-Soviet Period
[Пересмотр Долгосрочных Трендов Развития Малого И Среднего Предпринимательства В России И Регионах В Постсоветский Период]

Author

Listed:
  • Vera A. Barinova

    (Russian Presidential Academy of National Economy and Public Administration; Gaidar Institute for Economic Policy)

  • Stepan P. Zemtsov

    (Russian Presidential Academy of National Economy and Public Administration; Gaidar Institute for Economic Policy)

  • Alexander A. Mikhaylov

    (Russian Presidential Academy of National Economy and Public Administration)

  • Yulia V. Tsareva

    (Russian Presidential Academy of National Economy and Public Administration)

Abstract

Traditionally, trends and patterns in the development of small and medium-sized enterprises (SMEs) in Russia are assessed without taking into account changes in statistical criteria and methodologies, which can distort the analysis. This article describes and briefly explains the long-term trends in the development of the SME sector over the past 20 years in Russia, including taking into account a single end-to-end methodology of data series construction. It was found that the number of SMEs in the country has been decreasing in recent years, but still exceeds the values of the 2000s due to the complication of the structure of the sector, the spread of various kinds of franchises and business fragmentation to avoid taxation. Actual employment in the SME sector, excluding the self-employed, has been declining for many years. Negative trends are associated with a decline in personal income and economic activity, especially during the pandemic. In recent years, the number of forced entrepreneurs, self-employed, and, accordingly, the involvement of the population in entrepreneurial activity has been growing. The SME sector’s productivity is lower than in the economy as a whole, and in the last few years this gap has been growing as the average size of an SME decreases. The study was carried out within the framework of the RANEPA state task in 2022.

Suggested Citation

  • Vera A. Barinova & Stepan P. Zemtsov & Alexander A. Mikhaylov & Yulia V. Tsareva, 2022. "Reconsidering Long-term Trends in the Development of Small and Medium-Sized Enterprises in Russia and the Regions in the post-Soviet Period [Пересмотр Долгосрочных Трендов Развития Малого И Среднег," Russian Economic Development, Gaidar Institute for Economic Policy, issue 7, pages 29-44, July.
    • Handle: RePEc:gai:recdev:r2260
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    References listed on IDEAS

    as
    1. Zemtsov Stepan & Mikhaylov Alexander, 2021. "Trends and Factors of Development of Small and Medium-sized Businesses in Russian Regions during Сorona Crisis [Тенденции И Факторы Развития Малого И Среднего Бизнеса В Регионах России В Период Кор," Russian Economic Development, Gaidar Institute for Economic Policy, issue 4, pages 34-45, April.
    2. Zemtsov, S., 2020. "Institutions, entrepreneurship, and regional development in Russia," Journal of the New Economic Association, New Economic Association, vol. 46(2), pages 168-180.
    3. Alexander Chepurenko, 2017. "Innovation Entrepreneurship in Transition Economies: Problems and Outlook," Foresight and STI Governance (Foresight-Russia till No. 3/2015), National Research University Higher School of Economics, vol. 11(2), pages 6-9.
    4. Abramov, Alexander E. (Абрамов, Александр) & Aksenov, Ivan V. (Аксенов, Иван) & Radygin, Alexander D. (Радыгин, Александр) & Chernova, Maria I. (Чернова, Мария), 2018. "Modern Approaches to Measuring the State Sector: Methodology and Empirics [Современные Подходы К Измерению Государственного Сектора: Методология И Эмпирика]," Ekonomicheskaya Politika / Economic Policy, Russian Presidential Academy of National Economy and Public Administration, vol. 2, pages 28-47, April.
    5. Arnis Sauka & Alexander Chepurenko (ed.), 2017. "Entrepreneurship in Transition Economies," Societies and Political Orders in Transition, Springer, number 978-3-319-57342-7, July.
    6. S. Guriev & K. Sonin., 2008. "Economics of the Resource Curse," VOPROSY ECONOMIKI, N.P. Redaktsiya zhurnala "Voprosy Economiki", vol. 4.
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    Cited by:

    1. Ksenia V. Demidova, 2022. "SMEs under Anti-Russian Sanctions: Results of the First Half of the Year and Possible Support Measures [Мсп В Условиях Антироссийских Санкций: Итоги Первого Полугодия 2022 Г. И Возможные Направлени," Russian Economic Development, Gaidar Institute for Economic Policy, issue 11, pages 46-58, November.

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    More about this item

    Keywords

    small and medium-sized businesses; entrepreneurial activity; labor productivity; employment; self-employed; Russian regions; pandemic;
    All these keywords.

    JEL classification:

    • L26 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Entrepreneurship
    • P1 - Political Economy and Comparative Economic Systems - - Capitalist Economies

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