Journal of Applied Economic Research
ISSN 2712-7435
Regional Activity Concentration of Small Enterprises in Conditions of Inflati
Ruban D.A.
Abstract
Small businesses play a big role in the modern economy, but efficient fulfillment of their functions depends on external conditions, and, particularly, on inflation. The question of a possible link between the latter and small business development at a regional level is discussed only in a limited number of works by foreign and Russian experts. An objective of the present work is to study a possible relationship between regional activity concentration of small enterprises and manifestations of inflation. The situation in the Russian South is evaluated as a case study. The available literature is summarized and the issue is conceptually investigated. Statistical data on the number of small enterprises in the regions of the Russian south per 10,000 persons of population and in the consumer price index for 2005–14 are analyzed. The activity concentration of small enterprises depends on the nature of consumer price changes in a region. It should be noted that expectations of high inflation in the business community spur price growth in case of small business expansion. An inverse relation between the regional activity concentration of small enterprises and growing consumer prices occurs in the Russian south. If inflation influences negatively the sphere of small business, the Stavropol Region, the republics of Ingushetia and <st1:place w:st="on">North Osetia</st1:place> (Alania) and the Volgograd Region have the best conditions for the activity concentration of small enterprises. It is possible that inflation is a factor of the spatial dynamics of regional activity concentration of small enterprises that intensifies at a time of economic crises. Generally, lower acceleration of consumer prices appears to be favourable for an increase in regional activity concentration of small enterprises. Small business development requires efforts aimed at the minimization of the negative influence of consumer prices acceleration, as well as explanatory work for curtailing expectations of inflation growth in entrepreneurial community.
Keywords
small business; customer prices; inflation attitudes; regional economy; state programs.
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About Authors
Ruban Dmitry Aleksandrovitch – Philosophiae Doctor, Candidate of Geological-Mineralogical Sciences, Associate Professor, Higher School of Business, Southern Federal University, Rostov-on-Don, Russia (344019, Rostov-on-Don, 23-ja linija Street 43); e-mail: ruban-d@mail.ru.
For citation
Ruban D.A. Regional Activity Concentration of Small Enterprises in Conditions of Inflation. Bulletin of Ural <st1:place w:st="on"><st1:placename w:st="on">Federal</st1:placename> <st1:placetype w:st="on">University</st1:placetype></st1:place>. Series Economics and Management, 2018, Vol. 17, No. 1, 52-70. DOI: 10.15826/vestnik.2018.17.1.003.
Article info
Received October 23, 2017; Accepted November 27, 2017.
DOI: http://dx.doi.org/10.15826/vestnik.2018.17.1.003
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