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Small Business Determinants

Student: Zotova Olga

Supervisor: Andrey Aistov

Faculty: Faculty of Economics

Educational Programme: Economics (Bachelor)

Year of Graduation: 2019

In the context of the crisis and the current sanctions regime, the development of the real sector of the Russian economy is the main task of increasing the country's competitiveness on the world stage. Special attention should be paid to improving the business environment, in particular, for small and medium enterprises. The reasons for the underdevelopment of entrepreneurial activity are not only a lack of government support, but also a low level of motivation. In this paper, on the basis of GEM data, some factors, which affects the index of entrepreneurs' motivation, were analyzed, this index represents the percentage of those involved in TEA that are improvement-driven opportunity motivated, divided by the percentage of TEA that is necessity-motivated. During the analysis the hypotheses about the positive impact of the availability of funding, the absence of corruption as well as the effective protection of property rights were confirmed. Factors, such as the education of entrepreneurs, the tax burden, as well as the country's individual culture and traditions, do not affect the structure of early entrepreneurial activity.

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