Modeling of small and medium enterprises activities taking into consideration the entrepreneurial capital of a region

There is an urgent need for accelerated development of small and medium enterprises in the context of transformation of Russian economy. The development of business sector of regional economies of Russia puts forward the most acute problem of the definition of reserves of its sustainable increase. The aim of the study is to assess the three-factor production functions that describe the dependence of the turnover of small and medium enterprises on wages of employees, investments in fixed capital and the level of development of entrepreneurial capital in a region. The indicator characterizing the level of development of the enterprise capital of a region - the number of employees of large enterprises located in a corresponding region has been suggested. The study is based on empirical spatial data characterizing the activities of small and medium-sized enterprises, as well as the number of employees of large enterprises. Official statistical information has been used for continuous monitoring of business activity in 80 regions of Russia for 2015. The novelty of the study is to consider the impact of existing business capital on the turnover of small and medium enterprises. The study has allowed to determine the factors influencing the turnover of these enterprises located in all regions of the Russian Federation, to justify the high quality of approximation of the initial data by three-factor production functions, to prove that there is a significant potential for saturation of the economy of the Russian regions with goods, works and services of small and medium businesses. It has been proved that the accumulated entrepreneurial capital in the regions of the Russian Federation has a significant impact on the turnover of small and medium enterprises. It has been shown that the number of workers employed at large enterprises of a corresponding region can be used for its assessment. The developed production functions are effective management tools that allow us to assess the level of investment in fixed capital and labor resources of small and medium enterprises operating in the regions of Russia. The results of the study, namely new knowledge and tools for assessing the production activities of small and medium enterprises, are of scientific and practical importance. They can be used in studies of the entrepreneurial sector of the regional economy, monitoring the efficiency of the use of resources and entrepreneurial capital, substantiation of plans and programs for the development of small and medium businesses. Further research will be related to the development of similar functions in Russian industries and municipalities.