Institutional factor in the system of Russian small business development

The research results on Russian small business development in terms of “Institutions - Resources” are presented in the article. The study object is small business in Russia and small business in the industry. The extensive growth of small business is measured by a number of small enterprises in Russia, a number of small enterprises in the industry, a density of small enterprises in Russia, a density of small industrial enterprises. The quality of institutional changes is assessed by international ratings for: doing business, economic freedom, global competitiveness, corruption perceptions, government effectiveness, regulatory quality. The resource factor of the small business development is evaluated using macroeconomic indicators, indices of economic sentiment and confidence in the industry. The research period includes the pre-crisis (2003-2007) and post-crisis (2008-2014). It is shown that the low quality of the institutional environment in the pre-crisis period is leveled by the growth of the economy. In the post-crisis period institutional factors have become the support for an increase of small firms against the background of the economic growth slowdown: a significant reduction in transaction costs of opening a new business, changes in the criteria for rating as small business entities. The author concludes that the positive institutional changes can also provoke the quasi-growth of small companies, as well as negative ones. The quasi-growth is conditioned by the increase of not real market participants, but new “pseudo” small enterprises. This fact is explained by the desire of large companies to reduce their transaction costs of obedience to the law through the formal division of its business into several small firms. The determined effect of institutional changes on the small business development should be considered when designing the legal innovations in this sector.