Financial aspects of ensuring sustainable development of small and medium-sized businesses in the face of new challenges

Nadezhda S. Piontkevich and Ekaterina G. Sheina
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Nadezhda S. Piontkevich: Ural State University of Economics, Ekaterinburg, Russia
Ekaterina G. Sheina: Ural State University of Economics, Ekaterinburg, Russia

Journal of New Economy, 2021, vol. 22, issue 1, 105-130

Abstract: The special economic circumstances of 2019–2020 have formed new conditions for doing business, increased the role of the state in ensuring stable financial conditions for functioning of small and medium-sized businesses and helping them with adapting to the new situation. The article aims to assess the urgent measures of financial support for small and medium-sized businesses implemented by the Government of the Russian Federation from March 31, 2020 up to the present. The methodological basis of the research includes neoclassical finance and the capital structure theory. Methods of dialectical, cause-and-effect, structural, logical and statistical analysis are used. The findings reveal that the Government provided financial support for small and medium-sized business in the amount of 14 billion rubles in 2020 exclusively in the form of borrowed financial resources, while in a state of almost suspended operation the business needs first and foremost non-repayable financial resources. The analysis confirms that the ongoing measures of financial support for small and medium-sized businesses are highly sought after. Theoretical and practical significance of the research results is that the federal, regional, and local authorities can use them while offering financial support to businesses; in addition, business owners and managers can benefit from them while considering the funding of the activities.

Keywords: financial sustainability; state support; financial support; borrowed funds; sureties; microloans; challenges; pandemic (search for similar items in EconPapers)
JEL-codes: G32 G38 O43 (search for similar items in EconPapers)
Date: 2021
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Persistent link: https://EconPapers.repec.org/RePEc:url:izvest:v:22:y:2021:i:1:p:105-130

DOI: 10.29141/2658-5081-2020-22-1-6

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