Small entrepreneurship: The role in the social-economic system

Abstract

Optimizing the structure of the economy and ensuring the stable employment are the most important components in the policy of developing a flexible and competitive economy. The economic development strategies of the EAEU countries emphasize the need to increase the share of small and medium-sized enterprises (SMEs) in GDP and the share of the employed in this sector. However, the planned development parameters have never been achieved, which is determined not only by a long period of economic instability and insufficient government support for SMEs, but also by the social perception of entrepreneurship. The article considers the role of entrepreneurship, primarily small business, in the social-economic system. Based on the generalization of the entrepreneurship interpretations, the authors show that it has both economic and social significance, especially in the countries with developing markets. Small business performs numerous functions and has such features as mass character, innovations, riskiness and responsibility; it is an institution of social development, and a factor of economic growth and political stability. The analysis of the activities of small business in the EAEU countries (Belarus, Kazakhstan and Russia) in 2015-2019 shows their significant lag behind the developed countries. However, in recent years, the social role of SMEs has increased for they take into account the needs of local consumers and the possibilities of local markets, which is due both to the number of employees and their qualifications, and to the introduction of science-intensive technologies. The sociological data prove a change in the social perception of entrepreneurship: it is recognized as a successful career option and social status, but also as facing challenges that hinder its development. The article is based on the statistical data of the EAEU countries and the Eurasian Economic Commission, analytical materials of rating agencies and research centers.