IDEAS home Printed from https://ideas.repec.org/a/url/upravl/v15y2024i5p22-37.html
   My bibliography  Save this article

Determinants of receiving government support by small and medium-sized enterprises in Russia

Author

Listed:
  • Iuliia N. Naidenova

    (HSE University, Perm, Russia)

  • Petr A. Parshakov

    (HSE University, Perm, Russia)

  • Aleksey O. Smirnov

    (HSE University, Perm, Russia)

Abstract

Government support measures help companies overcome various restrictions impeding their growth and develop ment, which is of special relevance for small and medium-sized enterprises (SMEs). These measures, therefore, must reach the target companies and ensure efficient allocation of resources. The article reveals key characteristics of SMEs in Russia that increase the probability of them receiving government support. The research methodology is based on public interest theory, public choice theory and the concept of economic freedom. The research method is a two-step regression analysis, in which the binary choice model is first evaluated, and then the LASSO model is used to assess the impact of the textual content of the companies’ websites. The dataset of the study is represented by data on 2,176 Russian metallurgical enterprises for 2020–2023, of which 57% were receiving government support. The results of the first step of evaluation showed that the organization’s age and size meas ured by revenue were the key factors associated with the probability of receiving government support. At the second step, we found that the mention of certain goods or materials on the websites, the enterprise’s location and orientation towards foreign stakeholders were significantly related to the likelihood of getting state support. The study offers tools for analyzing the determi nants of government support for SMEs and highlights the importance of this analysis for more efficient allocation of government resources.

Suggested Citation

  • Iuliia N. Naidenova & Petr A. Parshakov & Aleksey O. Smirnov, 2024. "Determinants of receiving government support by small and medium-sized enterprises in Russia," Upravlenets, Ural State University of Economics, vol. 15(5), pages 22-37, November.
    • Handle: RePEc:url:upravl:v:15:y:2024:i:5:p:22-37
    DOI: 10.29141/2218-5003-2024-15-5-2
    as

    Download full text from publisher

    File URL: https://upravlenets.usue.ru/images/111/2.pdf
    Download Restriction: no
    File URL: https://upravlenets.usue.ru/en/issues-2024/1707
    Download Restriction: no
    File URL: https://libkey.io/10.29141/2218-5003-2024-15-5-2?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Berggren, Niclas, 2003. "The Benefits of Economic Freedom: A Survey," Ratio Working Papers 4, The Ratio Institute.
    2. Hessami, Zohal, 2014. "Political corruption, public procurement, and budget composition: Theory and evidence from OECD countries," European Journal of Political Economy, Elsevier, vol. 34(C), pages 372-389.
    3. Aminullah Assagaf & Hapzi Ali, 2017. "Determinants of Financial Performance of State-owned Enterprises with Government Subsidy as Moderator," International Journal of Economics and Financial Issues, Econjournals, vol. 7(4), pages 330-342.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. repec:jpe:journl:124 is not listed on IDEAS
    2. Cohen, Joseph N, 2010. "Neoliberalism’s relationship with economic growth in the developing world: Was it the power of the market or the resolution of financial crisis?," MPRA Paper 24527, University Library of Munich, Germany.
    3. Deerfield, Amanda & Elert, Niklas, 2022. "Entrepreneurship and Regulatory Voids: The Case of Ridesharing," Working Paper Series 1426, Research Institute of Industrial Economics.
    4. Whitney Buser, 2011. "The impact of fiscal decentralization on economics performance in high-income OECD nations: an institutional approach," Public Choice, Springer, vol. 149(1), pages 31-48, October.
    5. Harouna Sedgo & Luc Désiré Omgba, 2023. "Corruption and distortion of public expenditures: evidence from Africa," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 30(2), pages 419-452, April.
    6. Sulaiman, Saidu & Masih, Mansur, 2017. "Is liberalizing finance the game in town for Nigeria ?," MPRA Paper 95569, University Library of Munich, Germany.
    7. Arye L. Hillman & Niklas Potrafke, 2018. "Economic Freedom and Religion," Public Finance Review, , vol. 46(2), pages 249-275, March.
    8. Axel Dreher & Martin Gassebner & Lars-H. R. Siemers, 2012. "Globalization, Economic Freedom, and Human Rights," Journal of Conflict Resolution, Peace Science Society (International), vol. 56(3), pages 516-546, June.
    9. Watkins, Tate & Yandle, Bruce, 2010. "Can Freedom and Knowledge Economy Indexes Explain Go-Getter Migration Patterns?," Journal of Regional Analysis and Policy, Mid-Continent Regional Science Association, vol. 40(2), pages 1-12.
    10. Jeffery S. McMullen & D. Ray Bagby & Leslie E. Palich, 2008. "Economic Freedom and the Motivation to Engage in Entrepreneurial Action," Entrepreneurship Theory and Practice, , vol. 32(5), pages 875-895, September.
    11. Radu Ioan Åžimandan, 2015. "Free to Enterprise : Economic Freedom and Entrepreneurship In Romania," Romanian Economic Journal, Department of International Business and Economics from the Academy of Economic Studies Bucharest, vol. 18(56), pages 87-100, June,.
    12. Chauffour, Jean-Pierre, 2011. "On the relevance of freedom and entitlement in development : new empirical evidence (1975-2007)," Policy Research Working Paper Series 5660, The World Bank.
    13. José Manuel Cabello & Francisco Ruiz & Blanca Pérez-Gladish, 2021. "An Alternative Aggregation Process for Composite Indexes: An Application to the Heritage Foundation Economic Freedom Index," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 153(2), pages 443-467, January.
    14. Xiaohang Ren & Wenqi Li & Xu Cheng & Xinwei Zheng, 2024. "Economic freedom and corporate carbon emissions: International evidence," Business Strategy and the Environment, Wiley Blackwell, vol. 33(8), pages 8388-8412, December.
    15. Bernur Acikgoz & Anthony Amoah Author-Email: a.amoah@uea.ac.uk & Mine Yılmazer, 2016. "Economic Freedom and Growth: A Panel Cointegration Approach," Panoeconomicus, Savez ekonomista Vojvodine, Novi Sad, Serbia, vol. 63(5), pages 541-562, December.
    16. Feng, Qun & Shi, Xuejun & Zhang, Jianghua, 2019. "Influence of rent-seeking on safety supervision in Chinese construction: Based on a simulation technology," Technological Forecasting and Social Change, Elsevier, vol. 138(C), pages 1-9.
    17. Dowon Kim & Dongwon Lee, 2021. "Immigration and the pattern of public spending: evidence from OECD countries," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 28(4), pages 1014-1034, August.
    18. Mwangi S. Kimenyi, 2007. "Markets, Institutions And Millennium Development Goals," Economic Affairs, Wiley Blackwell, vol. 27(2), pages 14-19, June.
    19. Malgorzata Zielenkiewicz, 2014. "Institutional Environment In The Context Of Development Of Sustainable Society In The European Union Countries," Equilibrium. Quarterly Journal of Economics and Economic Policy, Institute of Economic Research, vol. 9(1), pages 21-37, March.
    20. Galletta, Sergio, 2017. "Law enforcement, municipal budgets and spillover effects: Evidence from a quasi-experiment in Italy," Journal of Urban Economics, Elsevier, vol. 101(C), pages 90-105.
    21. Jackson, Jeremy & Beaulier, Scott, 2023. "Economic freedom and philanthropy," Journal of Economic Behavior & Organization, Elsevier, vol. 214(C), pages 148-183.

    More about this item

    Keywords

    small and medium-sized enterprises; government support; company website; advisory support; financial support; educational support;
    All these keywords.

    JEL classification:

    • G38 - Financial Economics - - Corporate Finance and Governance - - - Government Policy and Regulation
    • H50 - Public Economics - - National Government Expenditures and Related Policies - - - General

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:url:upravl:v:15:y:2024:i:5:p:22-37. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Victor Blaginin (email available below). General contact details of provider: https://edirc.repec.org/data/usueeru.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.