Development of Small and Medium Enterprises in St. Petersburg

Abstract

This study examines the problems and difficulties faced by small and medium enterprises through the example of the St. Petersburg Union of Entrepreneurs. The bailout plan of the Russian government is aimed at supporting small and medium enterprises, providing measures to reduce administrative and tax burden, and protecting property rights. A radical change in the approach to import substitution policy is proposed, which would convert it into a modernization program. It is shown that the development of small and medium enterprises in St. Petersburg is rather sustainable despite adverse external effects. Aim. This study aims to propose a number of measures aimed at improving taxation practices and the relationship between small enterprises and local authorities through the example of St. Petersburg. Tasks. This study develops practical steps towards improving the sustainability of small and medium enterprises in the region, adjusting taxation, increasing personal responsibility of government officials and legislators for the possible consequences of their decisions. Results.It is necessary to introduce a principle of reasonable sufficiency, which implies that all innovations should be viewed through the lens of production efficiency, job creation, profit generation, development and, eventually, increase in tax revenues. Transparency of the authorities and the ability to discuss businessrelated decisions guarantees the adoption of reasonable action programs.