Production function characterizing the turnover of small enterprises in the regions of Russia

The solution of problems regulation of entrepreneurship sector of economy puts forward among the most urgent problem of determining the reserves of its growth in each of regions in Russia. The aim of the study was to assess the two-factor production function, describing the dependence of the turnover of small enterprises in the regions on wages of employees and investments in fixed capital. A production function similar to the Cobb-Douglas function without scale constraints was evaluated. The study was based on empirical spatial data characterizing the activities of small enterprises, including micro enterprises. Official statistical information on 82 regions of Russia for 2017 was used. The study allowed to prove the high quality of approximation on initial data obtained by the two-factor production function, to prove that the economy regions of Russia has not reached saturation with small enterprises. The advantages of choice as a factor in assessing the production function small entrepreneurship in regions of flow of investment and wages of workers and spatial data for one year are shown. The developed production function is an effective management tool that allows you to establish the effectiveness of the use of financial and labor resources by small businesses in Russia and specific regions. The results of the study, namely new knowledge to assess the production activities of small businesses, have scientific and practical value. They can be used in research, monitoring the business climate, determining resource needs, substantiating plans and programs for the development of small business in Russia.