Birch Index as an indicator of business competitiveness in the regional market segment of processing industry: a case of the market of juices in the Krasnodar Krai
Subject The article deals with the issues of development of small and medium-sized enterprises at the present stage of economic development of society in a competitive market environment. Objectives The aim of the study is to develop mechanisms for the development of entrepreneurial activity of companies, drivers of economic growth, using their competitive advantages. The study’s objectives are as follows: to define the theoretical aspects of the impact of market forces on the formation of companies’ business; to reveal and adapt foreign approaches to the formation of new methods of assessing the levels of economic growth of regional companies; to form a mechanism for creation and promotion of high-quality innovative products at the regional consumer markets; to identify competitive advantages and strategic initiatives of companies-driver in the regional market of juice industry. Methods The methodological basis of the study is based on the analysis and synthesis of scientific knowledge in the investigated field. The work uses techniques of systems analysis, market research, and research of system interconnections, induction and deduction, as well as a monographic method. Results We identified the positive role of market forces in the formation and realization of competitive advantages in developing and implementing the final product innovation, which has both consumer and added values. We show that the share of rapidly growing firms, termed "gazelles", in sectors of the economy is small, and most small businesses develop slowly. We prove that the use of the Birch Index in micro-and macroeconomics helps identify the most problematic and vulnerable points of the modern Russian enterprise system. We identify certain "gazelles" among the local juice-producing companies that have strong positive impulses for growth of the Russian economy. Conclusions Implementation of the proposed approaches and mechanisms of development of entrepreneurship of small and medium-sized enterprises is aimed at the realization of their competitive advantages. At the present stage of modernization and import substitution policy, the vector is shifting in the direction of development and further improvement of the public-private partnership mechanism.
Keywords: gazelles of business, small and medium-sized business, innovation, entrepreneurship, operating model agent, Birch Index
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