Problems of entrepreneurship development in the Russian Arctic Zone

Abstract

Due to its unique challenges, the Arctic region imposes the requirement of close cooperation in areas of private- and public-sector development. In the present work, the author aims to find the optimal ratio between state regulation and market mechanisms for the successful development of the energy sector Arctic region of the Russian Federation alongside improvements in the overall economic structure. Due to the complex impact on the system of interrelations between the Arctic unique set of regional resources, it makes sense to base the entire Arctic economy on the management of its natural resource potential. This will allow resources to be used more efficiently at the same time as satisfying resource-based needs and maintaining or even increasing the resource potential of the region. Since small and medium-sized enterprises (SMEs) react more quickly to various changes in the situation as well as being more resistant to sanctions and other external economic threats, focusing on their development is the most rational approach to the integrated socio-economic development of the Arctic region. A model of enterprises showing the dependence of production volumes on the factors that create them within municipal territories is proposed. This model is then used to as the basis for strategic tools for the development of the Arctic Zone of the Russian Federation.