Survival Factors of Small and Medium-sized Companies in Russia

Small and medium-sized enterprises (SMEs) are essential for economic development and sustainability. However, according to Razumovskaia et al. (2020), the number of SMEs in Russia has been decreasing by 6-10% every year since 2016. The thesis investigates the factors that influence the survival of Russian Small and Medium-sized Enterprises. Of particular importance for SMEs survival are various forms of governmental support, which have not been extensively studied. The impact of these programs is measured through financial performance indicators. The primary objective of the research is to evaluate the impact of government support on the performance of Russian SMEs. It also aims to examine the diverse effects of unique to the Russian context types of government assistance, such as property, informational and educational support. To conduct the study, a dataset was utilized that included panel data from the HSE International Laboratory for World Order Studies and New Regionalism, comprising information from Spark Interfax and Rosstat on 154,776 SMEs over a period of ten years. In order to analyze the data, a fixed and random effects model was employed. The regression analysis findings revealed that the coefficient with the most significant impact on the role of government assistance was financial support. However, informational, consulting, property and innovation support showed lower results, while educational support had no significant impact. The thesis contributes by elucidating the overarching benefits of government support for SMEs, thereby potentially increasing their interest in and engagement with government programs. Additionally, it provides a valuable resource for policymakers, aiding in formulating strategic decisions regarding the allocation of resources.