Importance Due to the turbulence in geopolitical reality of the world economy and the Russian national economy, the issues related to effective budgeting in business projects are particularly important. Nowadays, effective budgeting is an exception rather than the rule, and the modern business environment in conditions of economic sanctions makes it vital. Objectives The aim of the study is to create an effective budgeting model for a low-budget business project. The objectives are to build a budgeting pattern, to optimize it based on efficiency criterion in order to ensure sustainable functioning of a business structure. Methods I used descriptive and econometric methods to analyze various aspects of budgeting in a business project by the efficiency criterion. I also applied the tools that are standard for large-scale economic studies. Results I have developed a budgeting model implementation in a low-budget business project on the basis of my work experience in the real sector of economy and used the latest Western technologies of budgeting. I adjusted the results of the research to the application level and tested them in a number of economic entities. Conclusions and Relevance I conclude that the budgeting technology in the context of current economic environment of Russia can be an effective tool for setting up and operating small businesses. The proposed budgeting model for a small business, which is viewed as a business project, is multifunctional and applicable in various sectors of economy.
Keywords: effectiveness, project, management, cost, budgeting, small business
References:
Burgess J., Steinhoff D. Osnovy upravleniya malym biznesom [Small Business Management Fundamentals]. Moscow, Binom Publ., 1997, 493 p.
Burtsev V.V. Cherez byudzhetirovanie k effektivnomu menedzhmentu [Through budgeting to effective management]. Finansovyi menedzhment – Financial management, 2005, no. 1.
Velikaya E.G. Indikatory otsenki effektivnosti promyshlennogo predpriyatiya [Indicators for assessing the effectiveness of an industrial enterprise]. Finansovaya ekonomika – Financial economy, 2014, no. 1, pp. 78–87.
Velikaya E.G. Strategicheskoe upravlenie zatratami [Strategic cost management]. Gosudarstvennyi universitet Minfina Rossii. Finansovyi zhurnal – State University of Ministry of Finance of Russia. Financial journal, 2012, no. 3, pp. 61–72.
Velikaya E.G. Strategicheskoe upravlenie zatratami na osnove byudzhetirovaniya [Strategic cost management based on budgeting]. Finansy i kredit – Finance and credit, 2012, no. 9, pp. 10–27.
Dobrovol'skii E. Byudzhetirovanie shag za shagom [Budgeting step by step]. St. Petersburg, Piter Publ., 2005, 289 p.
Dugel'skii A.P., Komarov V.F. Byudzhetnoe upravlenie predpriyatiem [Budget management of an enterprise]. Moscow, Delo Publ., 2004, 189 p.
Karpov A.E. 100% prakticheskogo byudzhetirovaniya [100% of practical budgeting]. Moscow, Rezul'tat i kachestvo Publ., 2007, 336 p.
Maslenchenkov Yu.S., Tronin Yu.N. Praktika byudzhetirovaniya na predpriyatiyakh Rossii: prakt. posobie [Budgeting practice at Russian enterprises: a practical guide]. Moscow, BDTs-press Publ., 2004, 392 p.
Hope J., Frazer R. Za gran'yu byudzhetirovaniya. Kak rukovoditelyam vyrvat'sya iz lovushki ezhegodnykh planov [Beyond Budgeting: How Managers can Break Free from the Annual Performance Trap]. Moscow, Vershina Publ., 2007, 272 p.
Khrutskii V.E., Khrutskii R.V. Sistema byudzhetirovaniya. Sem' shagov po effektivnoi postanovke byudzhetirovaniya [A budgeting system. Seven steps of effective arrangement of budgeting]. Moscow, Finansy i statistika Publ., 2007, 179 p.
Sheikin G. Organizatsiya byudzhetirovaniya [Organization of budgeting]. Spravochnik ekonomista – Economist’s guidebook, 2005, no. 4. Available at: Link. (In Russ.)
Shim J., Siegel J.G. Osnovy kommercheskogo byudzhetirovaniya: poshagovoe rukovodstvo [Budgeting Basics & Beyond: A Complete Step-by-Step Guide for Nonfinancial Managers]. Moscow, Pergament Publ., 2001, 496 p.
Shchiborshch K.V. Byudzhetirovanie deyatel'nosti promyshlennykh predpriyatii Rossii: uchebnik [Budgeting of industrial enterprises of Russia: a manual]. Moscow, Delo i servis Publ., 2004, 592 p.
Bhandari N.C. Flexible budgeting can save small businesses. Management Review, 1982, vol. 71, no. 6, p. 45.
Hayen R.L. Applying Decision Support Systems to Small Business Financial Planning. Journal of Small Business Management, 1982, vol. 20, no. 3, pp. 35–46.
Jänkälä S., Silvola H. Lagging effects of the use of activity-based costing on the financial performance of small firms. Journal of Small Business Management, 2012.
Mucha-Aydlott J. The Quick Guide to Small Business Budgeting. San Diego Business Accounting Solutions, 2005, 102 p.
Pilkington M., Crowther D. Budgeting and Control. Financial Management, 2007, March, pp. 29–30.
Robinson R., Littlejohn W. Important Contingencies in Small Firm Planning. Journal of Small Business Management, 1981, vol. 19, no. 3, pp. 45–48.
Shim J.K., Siegel J.G. Budgeting Basics & Beyond. Prentice Hall Press, 1994, 464 р.
Suver J., Hadley G. Budgeting – Key to Survival in the Small Business. Journal of Small Business Management, 1978, vol. 16, no. 2, pp. 46–52.
Tucker M.W. Flexible Budgeting as a Management Tool. American Journal of Small Business, 1982, vol. 6, no. 4, pp. 10–19.
Viscione J.A. Small company budgets: Targets are key. Harvard Business Review, 1984, vol. 62, no. 3, pp. 42–52.
Zongsheng L. Strategic Financial Management in Small and Medium-Sized Enterprises. International Journal of Business and Management, 2010, vol. 5, no. 2, pp. 132–136.
