Democratic and Business Development in the Regions of Russia

In Russia, entrepreneurship is not sufficiently developed. Free enterprise, since 1929, in the USSR was curtailed; there was a complete nationalization of the economy. The state not only did not create economic and legal conditions for entrepreneurship, but also suppressed it with economic, administrative and criminal methods. With the collapse of the USSR there were conditions for doing business. The purpose of this work is to investigate the influence of regional political institutions on the development of small business in the regions of Russia. As shown by the results of the conducted econometric analysis, the development of entrepreneurship really depends not only on economic institutions, but also on political institutions. As indicators of political institutions, democratic elections, political pluralism, the level of corruption, the independence of the media and other regional characteristics of power have emerged. This is explained by the fact that small business, in contrast to large business, is really influenced by political institutions. Thus, for the development of small business in the regions of Russia it is necessary, first of all, to create an appropriate institutional environment for this. Correctly oriented and clearly verified support program can serve as a good impetus for the development and effective functioning of small business, which in turn will undoubtedly favorably affect the economies of individual regions and the country as a whole.