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Small business in modern Russia: problem with funding sources


Shavaleeva L.S.
(about the author)

Shavaleeva Lena Salavatovna – (The Russian Presidential Academy of National Economy and Public Administration)

Published in:
Russian Journal of Entrepreneurship
– Volume 18, Number 4 (February 2017)

JEL classification: D92, K20, L25

Keywords: funding sources, investment, small business, venture capital


Citation:
Shavaleeva L.S. (2017). Small business in modern Russia: problem with funding sources. Russian Journal of Entrepreneurship, 18(4), 551-560. doi: 10.18334/rp.18.4.37549


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Abstract:

Small business is one of the most important reserves of the economic development of modern Russia. However, its development, along with other reasons, is seriously impeded by the lack of funding sources. The use of equity capital, budgetary funds, loan capital and investments is strongly limited by the negative impact of a number of factors, such as: financial, economic, organizational, legal, human resource, administrative and other factors. In recent years, stricter requirements of the banks' for borrowers encourage small businesses to establish business contacts with the venture capital funds. But not all entrepreneurs are willing to work under specific conditions dictated by this business segment. A major role in solving current issues of investments in small business in Russian should play the state. Its policy in this area should take into account the interests of both parts, such as subjects and objects of investment relations.








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