Development of Entrepreneurship in the Region: Drivers and Problems

Abstract

The paper examines drivers of entrepreneurship development in the region on the example of Ural Federal District regions. The goal of the research is to identify drivers of and problems in the development of entrepreneurship in the region. We use theoretical, logical, statistical, analytical, and index methods. Scientific novelty of the study lies in the fact that it considers global experience of research entrepreneurship as applied to the level of region, identifies sets of factors that promote the development of entrepreneurship in the Tyumen Oblast, and assesses their impact on the level of entrepreneurship development. The paper also considers problems in the development of entrepreneurship in the Tyumen Oblast. We propose indicators that assess implementation efficiency of regional (state) programs for entrepreneurship support. We carry out a comparative analysis of some aspects of governmental support provided to small business in some countries. By 2016, Russia has made a breakthrough and improved economic environment for doing business, but there has been a decline in institutional environment indicators. The Tyumen Oblast has been and remains among the leaders in small business development for several years. We make the following rating of the types of economic activities by number of small enterprises in the Tyumen Oblast (in descending order): trade, real estate transactions, construction, manufacturing, transport and communications, and scientific research and development. We note negative dynamics in the turnover of small businesses in administrative units of the Tyumen Oblast. In the south of the oblast, the maximum volumes of turnover are observed in the following sectors (in descending order): manufacturing, construction, real estate transactions, leasing and provision of services. State (regional) support is one of the factors promoting the development of entrepreneurship. The Sverdlovsk and Tyumen oblasts are main recipients of state subsidies for development of small and medium business in the Ural Federal District. Southern areas and Khanty-Mansi Autonomous Okrug are leaders by this indicator in the Tyumen Oblast. We note a direct dependence between the positive dynamics of small business and the volume of state subsidies. Correlation coefficient is 78.5%. We introduce a number of indicators that reflect the effectiveness of implementation of regional programs aimed to support entrepreneurs. The next driver is the quality of the market. The Tyumen Oblast is one of the leaders by level of effective demand and it ranks 11th in the rating of Russian regions by quality of life. The paper also points out problems in the development of entrepreneurship in the Tyumen Oblast, such as dependence of small businesses on state subsidies, high transaction costs, shortage of employees with necessary skills, and reduction of financial solvency of citizens. [ABSTRACT FROM AUTHOR] Copyright of Economic & Social Changes: Facts, Trends, Forecasts / Economicheskie i Sotcialnye Peremeny: Fakty, Tendencii, Prognoz is the property of Russian Academy of Sciences, Institute of Socio-Economic Development of Territories and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)