Voronov V.V., Nikonov V.A. (2024). Small businesses in Moscow (part 1). Tyumen State University Herald. Social, Economic, and Law Research, 10(3),6–29. https: ...

Òåêñò ñòàòüè íà ñàéòå æóðíàëà URL: https://vestnik.utmn.ru/sociology/vypuski/2024-tom-10/-3-39/1253028/ (äàòà îáðàùåíèÿ 12.12.2024)

Abstract

In terms of social and technological risks, the development of small businesses is discussed as one of the important tools for the adaptation of the Russian economy in general and Moscow’s in particular, considering the rising political conflicts and the consequences of the coronavirus pandemic. Both the practitioners and researchers indicate that the decline of entrepreneurial activity might have negative long-term consequences. In the situation of weak development of small business institutions, not only their present contradictions may not be resolved, but new institutional “traps” may occur. Since the 1990s, when small businesses were “admitted” to the Russian economy, their biggest problems remain the same: high taxes (which will worsen due to the 2024 tax reform); difficulties with sales, working capital, hiring qualified personnel, and renting premises; legal insecurity and officials’ extortion; investment risks, failures of payments, and business-partners’ unreliability. Being the leader both in small business development and in government support, Moscow was chosen as a showcase of small business development. The literature review combines the results of small business research both from purely formal economic positions and within the contexts of small businesses’ social capital, values, and motivations. Additionally, this paper aims to verify the connection between entrepreneurs’ emancipative values and formal and informal types of social capital, highlighting businesses’ freedoms and equal opportunities. Having accounted for the limited planning horizons and weak social security from the standpoint of social justice, the results reveal that the state regulation and support of small businesses in Moscow require significant changes to increase the social responsibility of its actors, while the state management of social and economic processes of its development