Importance The article deals with the importance of small business and its core, i.e. small manufacturing enterprises (SME) as the main source of GDP and innovative development drivers, and illustrates cases of developed economies. The research focuses on issues of financing small business, other aspects and possible solutions. Objectives The research substantiates the importance of management quality in terms of SME growth and successful development, studies issues of managing SME during various stages of the life cycle, determines critical managerial issues that affect the performance of SME and prepare recommendations for improving the small business management system. Methods The article reviews data on economic and innovative activities of the Russian and foreign small businesses. The research applies methods of evaluating the efficiency of finance for innovative activity in Russia. Results As a result of the research, we found that Russia has a weakness in the institutional environment that impedes the development of SME. We demonstrate that the low management level is the most critical internal constraint. Conclusions and Relevance To make SME more important actors in the Russian economy, it is reasonable to improve the small business financing system and make it more accessible. As their key objective, executives of SME should improve the management quality. For this, we started the research into the Management Issues in Small Industrial Enterprises during Various Stages of the Corporate Life Cycle, which will result in recommendations for improving the management system of SME.
Keywords: small manufacturing enterprise, technological start-up, corporate life cycle, finance
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