Government support of small and medium-sized enterprises
Entrepreneurial process is a major factor in economic development and entrepreneurs are the key to economic growth. Government support of small and medium sized enterprises (SME) plays a very important role in the development of entrepreneurial activities in the economy.
The government of the Russian Federation has included the development of SME's into the list of top-priority measures for the next decade. In order to promote entrepreneurial activity, regional governments have launched numerous programs to support local businessmen and SMEs. The federal government has also been active and supportive of the regional initiatives.
Unfortunately, the government programs do not seem to bring the expected results. Therefore, it is necessary to conduct a specific research to evaluate the efficiency of the existing system of government support. Such research has already been conducted in one of the regions of Russia.
Prior to the research several hypothesis were announced:
Government support facilitates business development.
The recipients demonstrate increase in revenues, additional investments in capital assets, creation of new jobs.
Government support helps SMEs to become more stable: companies increase their market share, develop export activities, create subsidiaries, and conduct socially-oriented programs.
Due to the changes in an economic situation, SME's require different types of state support every year. Those companies that already receive various subsidies, require yet new forms of support. For example, startups need lax credits and information about specific state and regional business development programs. Working SMEs are in need of consulting and marketing services.
Many small innovative companies were participating in the survey. They are all increasing the amounts of patents and they need assistance in patenting procedures.
Opinions of different SMEs about the factors influencing entrepreneurship depend on a company's business experience. Young companies and experienced companies have different views on those...