Activity of small enterprises and microenterprises modeling based on the entrepreneur capital

Abstract

The purpose of the study is to assess the three-factor production functions that describe dependence of small enterprises and microenterprises turnover on workers wages, investments in fixed capital and the current level of regional entrepreneurial capital development. The study is based on the empirical spatial data characterizing the activities of all small enterprises and microenterprises, as well as the number of large enterprises employees. Official statistical information for 2018 in 82 regions of Russia is used. Study determines factors that influence on turnover such enterprises located in all regions, it proves that there is a significant potential for development of the Russian regional economy using goods and services provided by small enterprises and microenterprises. Article shows that the regional entrepreneurial capital has a significant impact on the turnover of small enterprises and microenterprises. Number of workers employed in large enterprises of a given region can be used to estimate this capital. Results of the study have academic and practical importance, especially new data and tools for evaluating the production activities of small enterprises and microenterprises. They can be implemented in regional economies business sector research, monitoring the efficiency of resource use and entrepreneurial capital.