Effects of Lending on the Development of Smalland Medium-Sized Enterprises in Russia

Abstract

Despite government support over several decades, small- and medium-sized enterprises are not developing at the rate expected by the government. Standardization of lending products for these enterprises, and the lending process in general, significantly simplifies the procedure of assessing the borrower’s creditworthiness, lowers lending expenses, and serves as a solution to the existing problem. Aim. This study aims to examine the problems - and standards of lending - with regard to small- and medium-sized enterprises and develop a set of measures for increasing the availability of loans for these enterprises. Methods. This study uses general methods of scientific cognition, results of foreign studies and evaluation data provided by the Russian Federal State Statistics Service, and the All-Russian Public Organization of Small- and Medium-Sized Enterprises. Results. Lending standards for small- and medium-sized enterprises have the potential to solve the problems of borrowing for the subjects of small- and medium-sized businesses, which would in turn facilitate the transition of the entire banking system towards efficient approaches and tools for regulating the lending system. This study presents the results of examining the problem of lending to small- and mediumsized enterprises. A qualitative dependence between the lending policy with regard to these enterprises and their financial autonomy is established. Measures aimed at increasing the availability of loans accessible to these enterprises are proposed.