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Institutional Factors in the Evaluation by the Entrepreneur of Municipality Investment Climate

Author

Listed:
  • Aleksandr Kokovikhin

    (Ural State University of Economics)

  • Ekaterina Ogorodnikova

    (Ural state University of economic)

  • Dina Williams

    (Enterprise Action Consulting & Training)

  • Andrey Plakhin

    (The Ural State University of Economics)

Abstract

The article presents the results of the survey assessing the satisfaction level of small and medium businesses of the Sverdlovsk region with the factors of the institutional environment created in the area. Modern economics identifies four economic benefits of entrepreneurship development: job generation; productivity growth; innovation and economic growth. Governments, however, can exert either a positive or a negative influence on the extent to which in practice these benefits materialize. The positive result of Government policy is the investment appeal of the territory. We suppose, that the investment appeal of the territory depends on the correlation of the indicator of satisfaction and objective parameters of the institutional environment. Data for the subjective view was the survey of the satisfaction level of small and medium businesses of the Sverdlovsk region with the factors of the institutional environment at the year 2015 (more than 1000 respondents in 72 territories). Data for the objective view was Reports of the Heads of Sverdlovsk region municipalities about the efficiency in the municipal management, made public in 2015. The results of the research allow to develop a series of recommendations to improve the institutional environment for small and medium businesses. The basis for the selection of priority measures to improve the satisfaction of entrepreneurs is the correlation of the indicator of satisfaction and objective parameters of the institutional environment. The recommendations of the paper can be used by State and Municipal Governments in the policy of the increase of territory investment appeal. The scientific results of the research can become the base for further investigations of the correlation between subjective and objective factors of territorial development.

Suggested Citation

  • Aleksandr Kokovikhin & Ekaterina Ogorodnikova & Dina Williams & Andrey Plakhin, 2017. "Institutional Factors in the Evaluation by the Entrepreneur of Municipality Investment Climate," Economy of region, Centre for Economic Security, Institute of Economics of Ural Branch of Russian Academy of Sciences, vol. 1(1), pages 80-92.
    • Handle: RePEc:ura:ecregj:v:1:y:2017:i:1:p:80-92
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    References listed on IDEAS

    as
    1. David B. Audretsch & Isabel Grilo & A. Roy Thurik (ed.), 2007. "Handbook of Research on Entrepreneurship Policy," Books, Edward Elgar Publishing, number 3856.
    2. Dmitrii Tolmachev & Elizaveta Ulyanova & Lyudmila Pliner, 2015. "Small And Medium-Sized Business Development In Regions: Establishment Of Priority Directions By The Example Of Sverdlovsk Region," Economy of region, Centre for Economic Security, Institute of Economics of Ural Branch of Russian Academy of Sciences, vol. 1(1), pages 115-131.
    3. Aleksandr Tatarkin & Svetlana Kotlyarova, 2013. "Regional development institutions as an economic growth factors," Economy of region, Centre for Economic Security, Institute of Economics of Ural Branch of Russian Academy of Sciences, vol. 1(3), pages 18-26.
    4. C. Praag & Peter Versloot, 2007. "What is the value of entrepreneurship? A review of recent research," Small Business Economics, Springer, vol. 29(4), pages 351-382, December.
    5. Aleksandr Tatarkin & Svetlana Kotlyarova, 2013. "Regional development institutions as an economic growth factors," Economy of region, Centre for Economic Security, Institute of Economics of Ural Branch of Russian Academy of Sciences, vol. 1(3), pages 9-18.
    Full references (including those not matched with items on IDEAS)

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    Cited by:

    1. Aleksandr Kokovikhin & Ekaterina Ogorodnikova & Dina Williams & Andrey Plakhin, 2018. "Assessment of the Competitive Environment in the Regional Markets," Economy of region, Centre for Economic Security, Institute of Economics of Ural Branch of Russian Academy of Sciences, vol. 1(1), pages 79-94.

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    More about this item

    Keywords

    small and medium-sized business; entrepreneurship; customer satisfaction; efficiency in municipal management; municipal rating; investments; investment appeal of the territory; institutional environment; government support; investment infrastructure;
    All these keywords.

    JEL classification:

    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • M51 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Personnel Economics - - - Firm Employment Decisions; Promotions

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