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The role of small business in regional economic development: The Volga Federal District case

Mirolyubova T.V. Perm State National Research University, Perm, Russian Federation ( mirolubov@list.ru )

Baranov M.A. Ministry of Finance of Perm Krai, Perm, Perm Krai, Russian Federation ( mark.baranow@gmail.com )

Journal: Regional Economics: Theory and Practice, #5, 2019

Subject The study addresses the totality of economic and administrative relations associated with assessing the role of small business in the regional economy.
Objectives The purpose is to investigate the importance of small business in the regional economy, unveil and describe the nature of GRP dependence of the Volga Federal District on economic performance indicators of small business, using regression models.
Methods The study draws on data aggregation, analysis of statistical data, correlation analysis, induction, deduction, synthesis, and the abstraction technique.
Results We formulate a definition of small business, describe its functions in the regional economy, evaluate the relationship between the small business’ economic performance indicators and regional GRP in the Volga Federal District.
Conclusions The small business development will contribute to creating a socially oriented model of market economy thus increasing the consumer surplus. The economic performance indicators of small business have strong positive relationship with the GRP of regions in the Volga Federal District. The findings may be useful for government institutions involved in small business development.


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