Small entrepreneurs of the region-contributor of labor as actors of human capital development (the case of the Volga Region)

Abstract

This article, based on empirical material obtained in October-December 2018, examines the potential and current state of the human capital of the Povolzhye, which includes six districts of the Saratov Region. The Saratov Region is a typical example of a labor-contributing region. The outflow of workers (including highly skilled professionals) and the ageing population only exacerbate the economic problems of the region and deepen the territorial inequality of the Russian Federation. Raising human capital is the best solution to the problem of labor emigration. However, on the one hand, the difficulties in the development of human capital lie in the high demands of workers for wages and in their reluctance to engage in heavy physical labor. Employers, on the other hand, often seek to hire workers who do not require additional training. This empirical study provides recommendations to the regional authorities and the strategy for the development of human capital. The novelty of the approach lies in considering the local entrepreneurs as the main subjects of raising human capital. Interviews with businessmen in six districts of Saratov region showed the lack of opportunities for successful entrepreneurs to expand the business, increase staff, and invest resources and efforts in the development of human capital of local communities. Reflection of expert opinions and assessments of executive authorities and employers allows formulating practical recommendations and identifying factors for the development of human capital, focusing on the business potential of the region and social integration of the population. The positive factors for the development of human capital should be the following: creating an enabling environment for local business development; developing human capital of rural and regional businessmen; and increasing the cohesion of the municipal community.