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Administrative obstacles to entrepreneurship development in the Republic of Komi: based on practical research

 

DOI: 10.34130/2070-4992-2019-4-54-63

Full article 

Bushueva L. I. – Doctor of Economics, Professor, Department of Management and Marketing, Pitirim Sorokin Syktyvkar State University, Syktyvkar, Russia; e-mail: This email address is being protected from spambots. You need JavaScript enabled to view it.

Popova Y. F. – Doctor of Economics, Professor, Head of Department of Management and Marketing, Pitirim Sorokin Syktyvkar State University, Syktyvkar, Russia; e-mail: This email address is being protected from spambots. You need JavaScript enabled to view it.

Musanova V. A. – Senior Specialist, Ministry of Investments, Industry and Transport of the Republic of Komi, Syktyvkar, Russia; e-mail: This email address is being protected from spambots. You need JavaScript enabled to view it.

In modern economics, competition is an essential condition for markets to function efficiently, and an important device facilitating area development. For this reason, Competition Development Standard in the subjects of the Russian Federation was introduced in Russia in 2015. The main purpose of the Standard is to facilitate improvements in the business environment by means of competition development in priority industries of Russian regions economies. The main tool to assess the competitive environment in the Russian market is business activity monitoring based on entrepreneur surveys. The article presents the results of assessing administrative obstacles and their effects on the development of competition in socially significant and high-priority goods and services markets within the Republic of Komi. Survey participants were primarily representatives of the small and medium-sized business (over 99%). The assessment carried out between 2015 and 2018 had those surveyed assess the administrative obstacles affecting business activities. In their opinion, the main obstacles for current operations or starting a new business in the Republic of Komi are high taxes (53.6%) and instability of legislation (26.8%) regulating business activities. Other factors having substantial effect on the business activity of regional companies are difficulties in accessing land lots, lengthy license procurement procedures, quality standards and requirements, necessity to establish relations with authorities, and corruption. The article studies differences in what the respondents assess to be primary obstacles to conducting and developing a business with consideration for the size and industry classification of their main business. The results of this research are recommended for use in developing measures to eliminate obstacles to competition development in the industrial markets of the Republic of Komi.

Keywords: administrative obstacles, competition, competitive environment, small and medium-sized business, monitoring, regional governance.

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For citation: Bushueva L. I., Popova Y. F., Musanova V. A. Administrative Obstacles to Entrepreneurship Development in the Republic of Komi: based on practical research // Corporate governance and innovative economic development of the North: Bulletin of the Research Center of Corporate Law, Management and Venture Capital of Syktyvkar State University. 2019. No. 4. Рр. 54–63. DOI: 10.34130/2070-4992-2019-4-54-63.