Small and medium enterprise entities mechanisms research: background, analysis, suggestions

Abstract

Introduction. The article analyzes the current measures to support small and medium-sized businesses. The topic is relevant due to the fact that existing support mechanisms are not always effective in the current business environment. Therefore, the work focuses on public and private support tools, and identifies the factors that influenced the effectiveness of these mechanisms. The scientific novelty of the study lies in the fact that the author's methodology for analyzing small and medium-sized businesses is proposed, and basing on the systematization of existing approaches, a new model of innovative business support recommendations has been developed that will help small and medium-sized businesses in the Far North. The paper also provides an analysis of statistics on the work of small and medium-sized enterprises in the regions of the far North.

Materials and methods. The covered materials include a theoretical overview of the authors' approaches to the problem, as well as methods of analysis, statistics of data on the work of enterprises in the far North, and a method of generalization. The methodology is based on the study of Rosstat institution statistics, official reports on the work of small and medium-sized businesses, as well as on the basis of scientific articles and monographs, characterizing the existing support mechanisms. The theoretical review describes the concept and essence of small and medium-sized enterprises, as well as examines the prerequisites for the formation of new approaches.

Results and conclusions. The research contains a description of current problems in support mechanisms for small and medium-sized enterprises. The main problems in the Far North for such enterprises are: limited access to finance, lack of market information, and high administrative barriers. Basing on this information, a new support approach has been proposed, including tax incentives, educational programs, and consulting services. The conclusions contain the idea that support for small and medium-sized businesses now requires an integrated approach. This approach should include government initiatives, such as the active participation of the private sector. The effectiveness of the proposed measures will help to adapt and function in the new environment.

Discussion. Basing on the results of the study, further prospects and proposals are described in terms of updating support mechanisms. Adapting approaches to rapidly changing market conditions and external challenges are specifically underlined. For this purpose, close cooperation between government agencies, the business community and scientific institutions is advisable to create an effective ecosystem of entrepreneurship support. The active role of government support is the main component for the successful development of small and medium–sized businesses. This factor is especially important for stimulating economic progress and ensuring public welfare in the country and in the Far North particularly.