Crisis phenomena in Russia and cooperation of enterprises to improve the development of monotowns

I. N. Al’khimovich () and N. P. Zalyvskii ()

Russian Journal of Industrial Economics, 2015, issue 1

Abstract: This article discusses the crisis in Russia, provides suggestions for improving the interaction between the main participants of the socio-economic regional development processes. AS such members large and small enterprises are regarded Emphasis is placed on the promotion and creation of favorable conditions for small business development, a key factor in overcoming territorial problems enhancing the innovative development of the socio-economic system in monoprofile cities. The executive authorities are often inclined to oppose the large-scale enterprises to the small ones, the emerging conflicts are solved in favor of large enterprises. This situation proves that despite declared recognition of the small business importance in practice the small business is discriminated because they are believed to turn out the low efficiency. The involvement of the Russian economy into the global processes implements searching for and finding placeswhere the operation will allow to get the maximum benefit from participation. Such places are presented for instance by «niches» for the provision of resources, primarily oil, gas and partially recycled metal and wood. This situation does not allow the economy of single-industry towns to develop effectively, partially due to lack of developed small businesses interacting with a large enterprise. It becomes clear that today it is impossible to ensure balanced growth of the mono cities economy providing the parallel development of small and large enterprises. The emergence of favorable conditions for the successful solution of local problems is possible when authorities will directly participate in the small business establishment including concrete measures aimed to its development.

Date: 2015
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Persistent link: https://EconPapers.repec.org/RePEc:ach:journl:y:2015:id:251

DOI: 10.17073/2072-1633-2015-1-45-50

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