SMALL BUSINESS AS A FACTOR OF MODERNIZATION OF AN OLD INDUSTRY MONO-TOWN


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Abstract

In the current Russian context, small business is considered as a factor contributing to the modernization of single-industry cities. The creation of the most favorable conditions for the development of business initiative taking into account regional and local features is an integral part of the state policy with regard to the single-industry municipalities. Special aspects of entrepreneurship in individual municipalities are determined by the various degrees of economic development and innovative activity of the territories of their dislocation, originality, and variability of the ways of mono-towns transformation. The purpose of this work is to study special aspects of the development of entrepreneurship as a factor of modernization and to clarify the directions of state support of private initiative in an old industry mono-town, which is a part of a large agglomeration. The paper systematizes the scientific conceptions of the innovative role of entrepreneurship in the modernization of the old industry cities and the network form of the small business organization supported in the economically and innovatively active regions by the agglomeration processes. The paper gives the analysis of the demographic, socio-economic and ecological indicators of Chapaevsk in comparison with the indicators of Samara region, analyzes the condition and the dynamics, industry specialization, volumes and directions of state support of small business in the urban district of Chapaevsk. The author studies the main factors inhibiting private initiative and investigates the influence of agglomeration on the growth of small business in a mono-town. The paper suggests the directions of business initiative support in the old industry mono-towns: the formation and saving of human capital, the development of local community’s creativity, the transformation and improvement of the municipal space comfort, the improvement of quality of living and the organization of effective network interaction providing the flexible specialization of a single-industry economy.

About the authors

Elena Olegovna Dmitrieva

Samara State University of Economics, Samara

Author for correspondence.
Email: dmitr-el@mail.ru

PhD (Economics), assistant professor of Chair of Regional Economy and Management

Russian Federation

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