State support as a tool to development of small business

Theoretical bases of economics and management

Developed small business is an indispensable condition for a stable economy of the country, as well as for individual regions. The most important condition for realizing the potential of small business is an effective system of state support for the business entities. The level of development of small business in different regions of the Russian Federation varies significantly, it depends on many factors. Thus, the Krasnodar Territory is characterized by fairly developed small and medium-sized businesses. The article discusses the main indicators of the activities of small businesses in the Krasnodar Territory by type of economic activity for 2019, while revealing a clear predominance of wholesale and retail trade. In this regard, it was noted that the entrepreneurs should be advised to turn their attention to other sectors of the economy of the Krasnodar Territory fit for small and medium-sized businesses. The state should provide small business entities with full informational, consulting, property, financial and educational support. The paper contains a list of organizations that make up the infrastructure for supporting small and medium-sized enterprises of the Krasnodar Territory. We identify factors that have a negative impact on the development of the state infrastructure for supporting small businesses and analyze the main indicators of the activity of small businesses of the Krasnodar Territory in dynamics over 10 years. We indicate negative aspects in the activities of small businesses that inhibit their development and consider measures taken in the Krasnodar Territory in order to implement Article 11 of the Federal Law of July 21, 2007 No. 209-FZ “On the Development of Medium and Small Enterprises in the Russian Federation”. We conclude that small business is in difficult competitive conditions and, despite the seemingly significant number of existing support systems for small businesses, is currently in need for development and implementation of a more effective system of state support.