Proshkina Oksana Nikolaevna1, Korneva Mariia Aleksandrovna1
1Saint-Petersburg State University of Economics, Master student

Small business plays an important role in the development of any country. During the crisis, it helps the state get out of the difficult economic situation. This article raises the issue of the development of small business in Russia. Also in the paper there are factors hindering the development of the economy.

Keywords: administrative barriers, business development trend of small businesses, corruption, credit, small business, small entrepreneurship, the shadow economy

Category: 08.00.00 Economics

Article reference:
Problems of small business in Russia // Modern scientific researches and innovations. 2015. № 9. P. 1 [Electronic journal]. URL:

View this article in Russian

Currently, the problem of small business in Russia is important. During the financial crisis the country needs entrepreneurs who are actively involved in public life. Small business is fairly mobile in a market system. It also provides an atmosphere of competition and quickly pays for itself. Competing with each other, entrepreneurs are forced to continuously progress and develop. As a result, the quality of goods and services lift to the next level.

Despite the need for the development of small business in Russia, at this period, the state has not established mechanisms to ensure favorable conditions for small business. Therefore, the actual number of small businesses is low and, as a result, society is not able to use the full potential of the market. The main functions of a small business can be attributed to maintain a competitive environment, providing a large number of jobs, the formation of the middle class and creating innovation.

There are many factors that hinder the development of small business: limited resources; high rental of premises; low wage; racketeering; rising prices for raw materials; lack of working capital. However, the state has the greatest impact on small businesses. It introduces high taxes and sets the administrative barriers. For a small enterprise it is difficult to obtain credit, because the credit and financial institutions in Russia are insufficiently developed.

Also difficult economic situation in the country makes banks charge very high interest rate for borrowing. Small business lending is risky for the bank. Taxes and administrative barriers force businessmen to bribe. According to the statistics, Russia took the 136th place in the list of Corruption Perceptions Index (CPI) [4]. Frequently corruption enables larger players displace small and medium-sized enterprises from the market. Corruption also makes business go into the underground economy. This situation prevents the further economic development of the country.

The existing system in the country is not able to protect small businesses and direct it to the path of development and prosperity. Therefore, the government should develop some programs for the development of small businesses and generate concrete measures for combating administrative barriers and corruption.

  1. Goss D. Small Business and Society (Routledge Revivals). – Routledge, 2015.
  2. Carroll A., Buchholtz A. Business and society: Ethics, sustainability, and stakeholder management. – Cengage Learning, 2014.
  3. Transparency International [Электронный ресурс] . – Режим доступа : URL:, свободный. – Загл. с экрана

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