Development of small business in Russia

The development of small business in Russia has a short history in the economic development of the country. Small business originates from 1990, when it began to be formed through the creation of limited liability companies, which became part of their receivers of previously created cooperatives.

Small business is a business that relies on the entrepreneurial activity of small enterprises and small firms that are not members of industrial and industrial associations and corporations. The subjects of entrepreneurial activity of small and medium business include commercial organizations with the formation of a legal entity, as well as individuals engaged in commercial activities without the formation of legal entities, but with the inclusion in the unified state register of individual entrepreneurs, as well as peasant and farm economies.

In the first half of the nineties, the development of small business in Russia received a new round due to the mass process of privatization of state-owned enterprises. The redistribution of state property further promoted the development of entrepreneurship. In 1995, the federal law "On State Support of Small Business in the Russian Federation" was adopted, which regulated general issues and the development of small business in Russia. Also, organizational and legal standards, criteria of small enterprises, including aspects of state support of small business, taxation issues and many others were determined.

The development of any form of entrepreneurial activity depends on two conditions - from the economic situation in the country and the ability of the business entity itself to use the rights granted to it for the further realization of economic goals and profit. These factors act on the development of small business, which is very sensitive to the conditions created by it.

The history of Russian business in a short time has gone through all stages of evolutionary development. As a result, certain capitals were formed, which contributed to the expansion of investment in all spheres of the national economy.

At present, the development of small business in Russia is included in the program of demonopolization of all structures of the country's economy. At this stage, it is envisaged to unbundle large-scale monopoly productions, by allocating production units to independent small organizations, as well as creating subsidiaries. The state program also developed a small business support infrastructure represented by the network of the largest Russian banks that have been working in the lending market for many years, including small and medium-sized businesses. Among the banks that will give preferential loans to small businesses - Sberbank, Rosselkhozbank, Bank Uralsib and others.

To date, a group of world experts identified a number of reasons that hamper the development of small business in Russia:

1. Difficult economic and financial situation in the country, a decline in production, weak legal protection of entrepreneurs, the severance of economic ties.
2. Low level of legal and economic knowledge of entrepreneurs themselves, bad business ethics, both in business and in the public sector.
3. Negative attitude towards entrepreneurs of the population.
4. Weak actions of state support in the sphere of small business.
5. Decrease in the purchasing power of the population for mass production.

However, as world experience shows, small business knows no equal in its ability to revive the economy and bring it out of the crisis.