Production Functions Small Enterprises and Microenterprises: Russian Regions Data for 2018

Abstract

The entrepreneurship started in Russia during the process transformation of state economy into market economy, beginning from 1992. The aim of the study was to assess the production functions that describe the volume of production small enterprises in all Russian regions. This functions explain dependence of the amount of release of small enterprises and microenterprises on the salary of their workers and investments in fixed capital. During the research was made assess of two-factor degree production functions that describe the dependence of the volume of production small enterprises on the wages of their employees and investments in fixed assets. Evaluation of functions was made on methods of regression analysis and linearization. The research was based on official empirical territorial data describing the work of small enterprises and microenterprises. In the paper we used statistical information on 82 regions, territories, areas of Russian Federation for 2018. We proved the high quality of approximation of the initial data by the two-factor production functions. Evaluated production functions have increasing return to scale. Proved that economy of Russian regions has not reached saturation with products of small enterprises and microenterprises. They have significant reserves for further development. That is, in all regions there are opportunities to increase the number of enterprises and the number of employees in them. Results of the study and tools for evaluation production functions can be applied in the studying of Russian entrepreneurship, in explanation of the development plans for this economic sector. Such information can be used by governments, regional authorities and municipal management. The methodic and software that were applied in the study process can be used in making analogous studies in various countries with a considerable amount of territories.