Improvement in the Efficiency of Investment Activity Management of Small Businesses in the Russian Federation


  •  Alexander M. Adamchuk    
  •  Denis E. Barkin    

Abstract

Based on a comparative analysis of the Russian small business operating in the Russian Federation and economically developed countries, the present article reveals an insufficient level of small business development while it is highly important for the Russian economy’s efficiency. This article justifies the value of investment activities for the operation of small businesses in the Russian Federation. It determines the tendencies of growth among unprofitable small businesses for the period between 2010 and 2013. Based on the analysis and consolidation of financial performance indicators of small businesses in the Russian Federation, we identified the main factors during the analyzed period, which constrained the investment activity of these entities in the current circumstances of the Russian economy development. The factors revealed include the following tendencies: lack of equity capital, low rate of return on the capital invested, and high value of debt capital. The article determines the main directions of investment activities within small businesses, which are characterized by the poor differentiation and subordinated nature of the economic and industrial activity of commercial entities. Taking into account the argumentation of inefficiency in the investment activity development of small businesses in Russia, the feasibility of using the J. Franshon and I. Romane’s matrix of financial strategies is reasoned in order to form an optimal investment strategy on the example of the Vector-Plast company. The system of conceptual recommendations on improving the efficiency of the company’s investment activity is suggested.



This work is licensed under a Creative Commons Attribution 4.0 License.
  • ISSN(Print): 1918-7173
  • ISSN(Online): 1918-7181
  • Started: 2009
  • Frequency: quarterly

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