Reconsidering Long-term Trends in the Development of Small and Medium-Sized Enterprises in Russia and the Regions in the post-Soviet Period

Пересмотр долгосрочных трендов развития малого и среднего предпринимательства в России и регионах в постсоветский период

Vera Barinova, Stepan Zemtsov, Alexander A. Mikhaylov and Yulia V. Tsareva
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Alexander A. Mikhaylov: Russian Presidential Academy of National Economy and Public Administration
Yulia V. Tsareva: Russian Presidential Academy of National Economy and Public Administration

Russian Economic Development, 2022, issue 7, 29-44

Abstract: Traditionally, trends and patterns in the development of small and medium-sized enterprises (SMEs) in Russia are assessed without taking into account changes in statistical criteria and methodologies, which can distort the analysis. This article describes and briefly explains the long-term trends in the development of the SME sector over the past 20 years in Russia, including taking into account a single end-to-end methodology of data series construction. It was found that the number of SMEs in the country has been decreasing in recent years, but still exceeds the values of the 2000s due to the complication of the structure of the sector, the spread of various kinds of franchises and business fragmentation to avoid taxation. Actual employment in the SME sector, excluding the self-employed, has been declining for many years. Negative trends are associated with a decline in personal income and economic activity, especially during the pandemic. In recent years, the number of forced entrepreneurs, self-employed, and, accordingly, the involvement of the population in entrepreneurial activity has been growing. The SME sector’s productivity is lower than in the economy as a whole, and in the last few years this gap has been growing as the average size of an SME decreases. The study was carried out within the framework of the RANEPA state task in 2022.

Keywords: small and medium-sized businesses; entrepreneurial activity; labor productivity; employment; self-employed; Russian regions; pandemic (search for similar items in EconPapers)
JEL-codes: L26 P1 (search for similar items in EconPapers)
Date: 2022
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Citations: View citations in EconPapers (1)

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