Regulation of small and medium-sized business development in Russia: problems and solutions

The authors prove that despite the active state policy carried out since the second half of the 2000s and aimed at supporting small and medium-sized business in the Russian Federation, the current level of development of this economic sector is insufficient. The present paper characterizes the modern structure of small and medium-sized business. The authors show that the main problems hindering its growth are conditioned by low market demand, large tax deductions, numerous administrative barriers, lack of funding and state support. On the basis of the official data of Russian Federal State Statistics Service on theresults of annual surveys of entrepreneurs, the authors revealed the factors that prevented innovation activity in 2010-2013. The deficiency of effective demand and the ambiguity of economic situation in the country have stable negative impact on MSB, while the impact of such factors as imperfect legal and regulatory framework, investment risks, low profitability and inadequate state of technological infrastructure is relatively nonsignificant. The authors describe system-wide and resource measures of state regulation of small and medium-sized business. The system-wide measures include preferential access to production facilities and equipment, special tax regimes, administrative control. The measures of resource support to entrepreneurs consist in subsidizing the lease payments and interest rates on loans for the modernization of production; grant support, the establishment of microfinance organizations and guarantee funds, the development of business support infrastructure. The authors describe the forms of these measures implementation in 2013 and the main directions of improving the state regulation of small and medium-sized business, including the reduction of tax burden and facilitation of taxation procedures, the reduction of administrative barriers and ensuring access of small and medium-sized enterprises to government orders and technological infrastructure.