INDIVIDUAL STORAGE SERVICES MARKET DEVELOPMENT AS AN ECONOMY GROWTH FACTOR IN MUNICIPALITIES

Abstract

Introduction. The publication examines the main characteristics of a new type of economic activity in Russia, Self Storage (individual storage), as a part of the analysis of the organizational and economic opportunities for this type of business in order to develop the economy of municipal entities.

The economic issues of organizing a Self Storage business have been examined basing on the experience of iPantry, which is one of the leaders in the individual storage market in Ekaterinburg.

The scientific novelty of the study lies in the fact that, basing on the methodology proposed by the authors, the prospects of the Self Storage business have been shown, and specific recommendations have been formulated for local governments to support them as a new tool for the socio-economic development of the territories.

Materials and methods. In the theoretical part of the publication, the definition of Self Storage has been provided, and the specifics of the functioning of this format in modern conditions have been shown. The dynamics of the development of the Self Storage market have been demonstrated through the analysis of statistical data.

From a methodological perspective, the opening of new individual storage warehouses involves the use of special methods and approaches that can be used to determine the efficiency of using storage facilities and identify problem areas. The article proposes an author's methodology for calculating the efficiency coefficient of using storage areas to determine the overall efficiency of a warehouse.

Results and conclusions. In the article, basing on the calculation of the economic payback period of Self Storage business projects, their prospects as a new source of income for municipal entities have been substantiated. In addition, the application of the author's methodology for calculating the utilization rate of the available warehouse space has shown how effectively the available space is being used. The calculations performed clearly demonstrate that the Self Storage business is a new and promising direction in the warehouse management segment.

The results obtained have made it possible to conclude that the Self Storage business is economically efficient and that it should be supported by municipal authorities.

Discussion. Currently, the work is underway on a new draft of the «Fundamentals of State Policy for the Development of Local Self-Government until 2030,» which includes provisions for the development of the economic potential of municipal entities. Therefore, informing local self-government bodies about the prospects for Self Storage business as a new source of economic development for municipal entities is in line with modern requirements for the reform of local self-government.

An important task in this regard is to find effective mechanisms for cooperation between local authorities and business representatives to ensure a thriving economy for municipal entities. Therefore, municipal authorities should implement such business support measures as providing loans, consulting on regional and federal measures to support entrepreneurship, training, and support for investment projects, etc.