+7 925 966 4690, 9am6pm (GMT+3), Monday – Friday
ИД «Финансы и кредит»

JOURNALS

  

FOR AUTHORS

  

SUBSCRIBE

    
Finance and Credit
 

The impact of public procurement on the development of small business in Russia

Vol. 23, Iss. 35, SEPTEMBER 2017

PDF  Article PDF Version

Received: 18 July 2017

Received in revised form: 2 August 2017

Accepted: 28 August 2017

Available online: 29 September 2017

Subject Heading: BUDGET REGULATION

JEL Classification: H57, L26

Pages: 2107–2122

https://doi.org/10.24891/fc.23.35.2107

Tumanyants K.A. Volgograd State University, Volgograd, Russian Federation
tka210@gmail.com

Sinitsyna E.D. Technosport Ltd, Volgograd, Russian Federation
lizaliza-1992@mail.ru

Intykbaeva S.Zh. Narxoz University, Almaty, Republic of Kazakhstan
saule_54@mail.ru

Importance Public procurement is one of the tools of small business support in many countries including Russia.
Objectives The paper is devoted to quantitative evaluation of the impact of this tool on small business development in Russia.
Methods The research compares the data on the small businesses engaging in public procurement and the indicators of small business development in Russia in 2010–2014. The analysis is based on fixed and random effects models of linear and logarithmic regressions.
Results We have discovered a positive relation only between the share of small enterprises in public procurement and the number of small enterprises at the regional level. The research has shown no evidence of the size of public procurement affecting turnover and profit of small business.
Conclusions and Relevance The findings of the study can be used to develop government policy regarding small business support in Russia, as well as the regulation of public procurement procedures. The paper concludes that there is no need in introducing a special regime of small business' access to public procurement.

Keywords: public procurement, small business, budget, fixed effects model, random effects model

References:

  1. Pin'kovetskaya Yu.S. [Analysis of Participation Small Entrepreneurship in Public Purchasing in the Regions of Russia]. Izvestiya Tul'skogo gosudarstvennogo universiteta. Ekonomicheskie i yuridicheskie nauki = Proceedings of TSU, 2014, no. 1-1, pp. 205–214. (In Russ.) URL: Link
  2. Nicholas C., Fruhmann M. Small and Medium-Sized Enterprises Policies in Public Procurement: Time for a Rethink? Journal of Public Procurement, 2014, vol. 14, iss. 3, pp. 328–360. URL: Link
  3. Arrowsmith S. Public Procurement as an Instrument of Public Policy and the Impact of Market Liberalisation. Law Quarterly Review, 1995, no. 111, pp. 235–284.
  4. Schiavo-Campo S., Sundaram P. To Serve and Preserve: Improving Public Administration in a Competitive World. Philippines, Manila, Asian Development Bank, 2000, 836 p. URL: Link
  5. Edler J., Georghiou L. Public Procurement and Innovation: Resurrecting the Demand Side. Research Policy, 2007, vol. 36, iss. 7, pp. 949–963. doi: 10.1016/j.respol.2007.03.003
  6. Walker H., Preuss L. Fostering Sustainability through Sourcing from Small Businesses: Public Sector Perspectives. Journal of Cleaner Production, 2008, vol. 16, iss. 15, pp. 1600–1609. URL: Link
  7. Feldman M.P. The Entrepreneurial Event Revisited: Firm Formation in a Regional Context. Industrial and Corporate Change, 2001, vol. 10, no. 4, pp. 861–891. URL: Link
  8. Frederking L.C. A Cross-National Study of Culture, Organization and Entrepreneurship in Three Neighborhoods. Entrepreneurship and Regional Development, 2004, vol. 16, iss. 3, pp. 197–215.
  9. Audretsch D.B. Sustaining Innovation and Growth: Public Policy Support for Entrepreneurship. Industry and Innovation, 2004, vol. 11, iss. 3, pp. 167–191. URL: Link
  10. Parker R. Governance and the Entrepreneurial Economy: A Comparative Analysis of Three Regions. Entrepreneurship: Theory and Practice, 2008, vol. 32, iss. 5, pp. 833–854. doi: 10.1111/j.1540-6520.2008.00258.x
  11. Kidalov M.V., Snider K.F. US and European Public Procurement Policies for Small and Medium-Sized Enterprises (SME): A Comparative Perspective. Business and Politics, 2011, vol. 13, iss. 4, pp. 1–41. URL: Link
  12. Preuss L. On the Contribution of Public Procurement to Entrepreneurship and Small Business Policy. Entrepreneurship & Regional Development, 2011, vol. 23, iss. 9–10, pp. 787–814. URL: Link
  13. Loader K., Norton S. SME Access to Public Procurement: An Analysis of the Experiences of SMEs Supplying the Publicly Funded UK Heritage Sector. Journal of Purchasing & Supply Management, 2015, vol. 21, iss. 4, pp. 241–250.
  14. Loader K. SME Suppliers and the Challenge of Public Procurement: Evidence Revealed by a UK Government Online Feedback Facility. Journal of Purchasing & Supply Management, 2015, vol. 21, pp. 103–112. URL: Link
  15. Umnova M.G. [The problems of participation of small business in government procurement in Russia]. Rossiiskoe predprinimatel'stvo = The Russian Journal of Entrepreneurship, 2014, no. 15, pp. 13–23. (In Russ.) URL: Link
  16. Loader K. The Challenge of Competitive Procurement: Value for Money Versus Small Business Support. Public Money & Management, 2007, vol. 27, iss. 5, pp. 307–314. URL: Link
  17. Nakabayashi J. Small Business Set-asides in Procurement Auctions: An Empirical Analysis. Journal of Public Economics, 2013, vol. 100, pp. 28–44. URL: Link
  18. Loader K. Is Local Authority Procurement Supporting SMEs? An Analysis of Practice in English Local Authorities. Local Government Studies, 2016, vol. 42, iss. 3, pp. 464–484. URL: Link
  19. Storey D. Six Steps to Heaven: Evaluating the Impact of Public Policies to Support Small Businesses in Developed Economies. In: Sexton D.L., Landstrom H. (Eds). Handbook of Entrepreneurship. URL: Link
  20. Curran J. What Is Small Business Policy in the UK for? Evaluation and Assessing Small Business Policies. International Small Business Journal, 2000, vol. 18, iss. 3, pp. 36–50. URL: Link
  21. Davila R.L., Ha I., Myers S.L.Jr. Affirmative Action Retrenchment in Public Procurement and Contracting. Applied Economics Letters, 2012, vol. 19, iss. 18, pp. 1857–1860. URL: Link
  22. Gafurova G.T., Notfullina G.N., Fukina S.P. [Public Procurement as an Instrument for the Development of Small and Medium-Sized Business in Russia]. Ekonomika regiona = Economy of Region, 2016, vol. 12, iss. 4, pp. 1233–1243. (In Russ.) URL: Link doi: 10.17059/2016–4–23
  23. Karjalainen K., Kemppainen K. The Involvement of Small- and Medium-Sized Enterprises in Public Procurement: Impact of Resource Perceptions, Electronic Systems and Enterprise Size. Journal of Purchasing and Supply Management, 2008, vol. 14, iss. 4, pp. 230–240. doi: 10.1016/j.pursup.2008.08.003

View all articles of issue

 

ISSN 2311-8709 (Online)
ISSN 2071-4688 (Print)

Journal current issue

Vol. 30, Iss. 3
March 2024

Archive