Government Procurements as a Tool for the Development of Small and Medium Business in Russia

Abstract

The question of the development of small and medium business is relevant for several decades. This article considers questions regarding the support of small business through the government procurement system. In the framework of the present study, the author attempted to systematize data on the dynamics (since the adoption of the Federal Public Contracts Act), and the structure of government procurement in terms of participation of small businesses in the procurement process, which revealed certain trends. The main research methods were vertical and horizontal analysis of dynamic series, correlation and regression models of the panel data. Data on the participation of small businesses in government procurement are grouped according to various criteria depending on the purpose of analysis. Groups of data were analyzed by 83 subjects of the Russian Federation, which enabled a full-scale assessment of the effectiveness of procurement in terms of the economy. To assess the influence of procurement on the development of small businesses, three hypotheses were put forward: increasing the number of customers placing orders for small businesses, as well as the reduction in the share of customers who do not meet the requirements of the law on the 15-percent threshold; this leads to an increase in budgetary savings, the increase in the number of applications for small businesses leads to an increase in the number of data entities in the regions, the number of orders placed for small businesses affect the cash ow of small businesses. On the basis of panel data for the period 2011–2015 years, a uni ed information system of state and municipal procurement which built econometric models, have confirmed the hypothesis put forward.