Small and medium-sized entrepreneurship in Russia and regions in 2019–2020

Vera Barinova, Stepan Zemtsov and Yulia Tsareva
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Yulia Tsareva: Gaidar Institute for Economic Policy

Published Papers from Gaidar Institute for Economic Policy

Abstract: Government funding of the respective activities of small and medium-sized enterprises (SME) under the national project "Small and medium-sized entrepreneurship and support of entrepreneurial initiatives" increased in 2018-2020. However, in 2019, the number of SMEs subjects decreased by 118 thousand compared to 2018, and the number of people employed in the sector fell to 18.8 million, i.e. decreased by almost half a million people (the goal of the national project for 2024 is 25 million people). The share of the SME sector in GDP decreased to 20 percent in 2018 (the goal of the national project for 2024 is 32.5 percent). Generally, negative trends in the development of the sector, associated with an increase in the VAT rate, the introduction of online cash registers and almost zero growth in household incomes were observed in Russia in 2019. In 2020, near-zero economic growth and the coronavirus pandemic, which has already led to a significant drop in demand, especially in the restaurant business, tourism and entertainment, will negatively affect the development of the SME sector. A more significant reduction in performance of the sector`s activity is expected compared to 2019. However, the conditions for the development of entrepreneurship and, accordingly, the indicated trends vary significantly across Russia`s regions.

Keywords: Russian economy; small businesses; medium-sized enterprises (search for similar items in EconPapers)
JEL-codes: C53 E37 L21 L52 (search for similar items in EconPapers)
Pages: 11 pages
Date: 2020, Revised 2020
New Economics Papers: this item is included in nep-cis, nep-ent, nep-mac, nep-sbm and nep-tra
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