Changing the investment activity of small business entities in terms of corruption network

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The article concentrates on the economic aspects of corruption in the activities of small business enterprises. In these days the authorities of the Russian Federation at various levels pay special attention to the fight against corruption. The reduction of corruption in the country is one of the priorities of state-building in modern times. One of the most frequent manifestations of corruption in relation to business is the constraint on businessmen to bribe officials at various levels. It is shown that there is a decline in efficiency of investment in small business entities due to the high level of corruption of the Russian economic space. It’s proved that not only the need to attract debt capital, but also the presence of a corrupt environment may lead, in general, to the decrease in business value and the loss of business stability of a small business enterprise. Currently in the field of investment interests of small business a special emphasis is on commodity markets, where the payback period of investment is less than three, maximum five years. At the same time, the competitiveness of a new product remains roughly in the same time span taking into consideration a quick pace of renewing the assortment of imported consumer goods. Therefore, the success of a new product entering the market, characterized by a high speed to maximize sales depends on the rate of product appearance in the market after the occurrence of an appropriate consumer request. Consequently, the investor’s decision to start investing in new production must be based on the probability of occurrence in the market competing substitute products, increasing directly proportional to the commodity attractiveness of a business idea and inversely proportional to the cost of required investments.

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Small enterprise, manufacturing, economic environment, corruption, investment activity, efficiency of investments, payback period of investments, competitiveness of products,

Короткий адрес: https://sciup.org/147156442

IDR: 147156442

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