Stepan Zemtsov, Y. Tsareva, V. Barinova, M. Belitski, Alexander N. Krasnoselskikh
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Small business in Russia: institutions, market potential, taxes and digitalization
ABSTRACT In this paper we use an institutional approach and apply a regional perspective to explore how market potential, formal institutions, taxes, access to finance, regional policy instruments, and digitalization have affected small business activity in 83 Russian regions during 2008–2018. We use various regional data sources and official statistics to study the effects of regional business environments on entrepreneurship. Our results suggest that Russia’s business environment, including policy measures in taxation, is important in explaining small business activity, however digital transformation and the role of market potential can be better controlled by entrepreneurs in terms of what skills to learn and where to locate their businesses. In addition, we discuss the effect of exogenous shocks and changes in the business environment, along with dynamics, challenges, and perspectives of entrepreneurship in Russia.
期刊介绍:
Post-Communist Economies publishes key research and policy articles in the analysis of post-communist economies. The basic transformation in the past two decades through stabilisation, liberalisation and privatisation has been completed in virtually all of the former communist countries, but despite the dramatic changes that have taken place, the post-communist economies still form a clearly identifiable group, distinguished by the impact of the years of communist rule. Post-communist economies still present distinctive problems that make them a particular focus of research.