Practices and Effects of Municipal Support for Small and Medium-Sized Businesses in the Rural District

Abstract

The article presents the results of research of the support practices of local governments for small and medium-sized businesses in a rural municipal district — the Tyumentsevsky District in the Altai Territory. Based on the analysis of the target indicators of the municipal program for the development and support for small and medium-sized businesses in 2014-2019, of the data from the reports of the Tyumentsevsky District Administration on its implementation and the expert survey results, the effects of the entrepreneurship development and its municipal support are shown. A weak correlation is found between the implementation of the target indicators plan and the actual municipal support practices. According to the results of a survey of local entrepreneurs, the level and dynamics of the development of small and medium-sized businesses and the practices of the local government for their support are assessed. Institutional barriers to the development of small and medium-sized businesses, a low level of their self-organization, insufficient information and consulting business support, and a number of other problems are identified.
 Conclusions are drawn about the relatively low effects of the implemented practices of municipal support for small and medium-sized businesses. Low quality of planning the targets, small opportunities and results financial security of the municipal program are shown. Proposals are made to improve the quality of planning in the development and implementation of municipal programs to support small and medium-sized businesses in rural areas, and to improve the municipal practices for their support, including distance learning and information support, businesses self-organization stimulating and development of their integration connections.