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TERRA ECONOMICUS

SMALL BUSINESS AND STRUCTURAL CHANGES IN INDUSTRY

TERRA ECONOMICUS, , Vol. 17 (no. 4),

The choice of priorities of state structural policy is most often linked to the definition of proportions between industry markets. At the same time, analysis of intra-industrial structural changes can provide additional information about the sources and factors of economic growth. As the authors suggest, small business in Russia is not a driver for economic development. The research method is based on a comparative analysis of the mass, index and rate of structural changes of small businesses compared to the industry as a whole. The assessment was carried out in the context of three groups of indicators: revenue, the average number of employees and investments in fixed capital of enterprises. The information base of the study consisted of data on enterprises of ten sectors of industry from 2005 to 2017. The research findings confirm the industry heterogeneity between small and other industrial enterprises. First, the rate of change in revenue for the period under study for small businesses is significantly different from the General trends in industry. Second, structural changes in the number of employees and investment in fixed assets confirm the fact that small business is growing much slower than the industry as a whole. Third, Pearson’s assessment of the correlation between the structural change index and profitability of sales showed that the increase in output (revenue) and investment in fixed assets leads to a decrease in the efficiency of small industrial enterprises. The proposed work provides grounds for further research in the field of assessing the effectiveness of structural industrial policy and behavior of small enterprises in Russia.
Citation: Orekhova, S. V., Kislitsyn, E. V. (2019). Small business and structural changes in industry. Terra Economicus, 17(4), 129–147. DOI: 10.23683/2073-6606-2019-17-4-129-147


Keywords: small enterprises; industry; structural policy; structural chfnges; profitability of sales; intra-industry analysis

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Publisher: Southern Federal University
Founder: Southern Federal University
ISSN: 2073-6606