Academy of Entrepreneurship Journal (Print ISSN: 1087-9595; Online ISSN: 1528-2686)

Research Article: 2020 Vol: 26 Issue: 1S

Digitalization of Entrepreneurial Socioeconomic Management Systems

Leonid A. Zhigun, Plekhanov Russian University of Economics

Ivan V. Morozov, Plekhanov Russian University of Economics

Maxim S. Sokolov, Plekhanov Russian University of Economics

Ruslan A. Abramov, Plekhanov Russian University of Economics

Meir N. Surilov, Plekhanov Russian University of Economics

Abstract

Aim of the study: A network of small and medium-sized businesses operating in priority sectors will also contribute to the balanced development of individual regions and the creation of a positive image of the country, and consequently, economic growth. However, recently there has been a concentration of the largest number of small businesses in the field of trade. This is due to the fact that now only trade is able to provide an optimal combination of financial resources and business risk. Methodology: Therefore, from the point of view of the entrepreneur, this situation is justified: the need to invest funds is compensated by a guarantee of their return with the lowest risk for the business entity. For example, in the industrial sphere, it is possible to achieve priorities in the development of production sectors by attracting financial resources for scientific and technological purposes by these business structures, which will allow effective use of public funds by implementing regional development programs; produce high-tech innovative products using the advantages of the small business sector. Conclusion: The specifics of entrepreneurship determines the need to develop new types of products and forms of organization of production activities and sales markets. This simultaneously involves innovative solutions in the organization of production processes for the production of individual components for domestic industrial enterprises with a focus on innovation and systematic and targeted innovation activities of small businesses. In this case, innovation processes are an integral part of the production and economic activities of both types of business entities. They are focused on updating and improving their production capacities through improving organizational and economic relations.

Keywords

Entrepreneurship, Innovation System, Risk Management, Stock, Component, Formation.

Introduction

A stable balance in the market of goods and services for individual production enterprises is provided by a stable volume of sales, which indicates a positive financial result of such enterprises and, of course, affects the value of their profits (Eijdenberg, 2019). However, in General, the market potential of the business sector of the territory's SME economy, which will cooperate with large companies, will also depend on external factors of the PS market, which can include the saturation of the market with goods, works and services and the demand for them from customers (Almodóvar-González, 2020). The volume of intermediary services and the potential of the competitive environment also play an important role (Zhang, 2016).

When building a new model of economic development of the country, the processes of integration of economic structures into the global world economy are becoming increasingly important (Darley, 2020). Such progress is impossible without a competitive economic environment for the formation of a new model for organizing industrial activities (Angulo-Guerrero, 2017). Therefore, given the current priorities of industrial development of the state for the effective flow of business processes in the production sectors, it is necessary to create new and" revive " existing production facilities, which is a prerequisite for the successful functioning of economically strong industrial complexes of the administrative and territorial (Escandon-Barbosa, 2019). When forming the business environment, it is necessary to organize a network of business structures in priority industries, as well as provide them with a stable competitive integration-oriented business environment (Escandon-Barbosa, 2019).

The prospects for the development of the modern economy depend on the search for new mechanisms for effective use of the economic potential of industrial and administrative-territorial complexes (Beynon, 2020). That is why, at the current stage of market changes, it is crucial to build such an economic model of IOPS, which will outline the prospects for the development of the domestic economy in the direction of European integration processes (Díaz-Casero,2012).

Today, regional policy is considered as one of the activities of local authorities to ensure the dynamic socio-economic development of territories (Voda, 2020). The problem of optimizing the relationship between the Central government and local self-government is quite acute in the implementation of the system of regional policy measures. In particular, there is a need for a functionally justified distribution of their powers, taking into account the current conditions of development of the market economy (Escandón-Barbosa, 2019). An important role is played by the system of measures of local authorities aimed at creating a favorable business environment in the region to support enterprises in the production sectors of the economic complex, that is, the implementation of the tasks of the state regional policy (Escandón-Barbosa, 2019).

Results and Discussion

The importance of taking into account regional characteristics in developing policies to support "Production" MS-entrepreneurship is due to the fact that this structural element of the market economy is mainly focused on local product markets and helps to use the entrepreneurial potential as a significant resource for regional development (Ortega Álvarez, 2015). At the same time, its economic, social and environmental components are influenced, which contributes to the balanced development of the entire administrative-territorial complex and the formation of IOPS. In the future, this combination will ensure economic growth through the development of enterprises in the production sectors of the economy of the territories and social stability for their population thanks to additional revenues to the relevant local budgets and the direction of spending these funds to ensure priority social needs (Thornton, 2011). The use of various forms of integration interaction between large and small (medium) SPDS will help to increase the production potential of the region (Cebula, 2020).

Regional business development policy should be understood, on the one hand, as a well – developed legislative and practical activity of Central and local Executive authorities and local self-government bodies in all regions of the country, aimed at creating the necessary set of conditions for the development of entrepreneurship, and on the other, as socio-economic activities carried out within the framework of national policy, enshrined in legislation by the regions themselves to achieve specific regional and local goals and objectives (Damaraju, 2020).

Therefore, in order to ensure balance in the markets of strategically important products and create a competitive business environment, the tasks of implementing anti-crisis measures and measures that ensure the country's transition to sustainable socio-economic development at the subsequent stage of market transformations are at the forefront of the state's financial and economic policy(Peterson, 2020). Market conditions of business provide for the implementation of state policy aimed at such conditions of the business environment (Goodale, 2011):

1. Achieving Macroeconomic Stability And Restoring Economic Growth;

2. Providing Favorable Conditions For The Development Of Entrepreneurship, Support For Export Activities Of Small And Medium-Sized Businesses;

3. Assistance In Budget Support And Modernization Of Industrial Enterprises, Introduction Of New Models For The Development Of Modern Production And Market Infrastructures, Support For The Real Sector Of The Economy (Providing Preferences And State Support To Enterprises In Priority Sectors Of The Industrial Sector Of The Economy).

It is advisable to consider the scope of activation of the transformations that are currently taking place in almost all spheres of economic life of the country due to the development of small (medium) businesses, because the formation of market relations in the business environment involves the development of this specific socio-economic form of production. However, when considering this structural element of a market-type economy, it is necessary to take into account the need for a balanced state regional policy in relation to development priorities and program support for business processes in the relevant region, taking into account changes in the business environment. At the same time, it is economically expedient to direct expenditures of local budgets to program measures to support high-tech production enterprises (Pablo-Martí, 2014).

In view of the need to implement the basic principles Of the concept of regional policy in order to strengthen the competitive conditions of the business environment and reduce the disparities in the socio-economic development of administrative-territorial units, the necessary attention should be paid to the introduction of new models and management mechanisms for leading production complexes that include SPDS of one or related industries (Hechavarría, 2018).

Today, regional policy is considered as one of the activities of local governments to ensure the dynamic socio-economic development of territories. The problem of optimizing the relationship between the Central government and local self-government is quite acute when implementing a system of regional policy measures. In particular, there is a need for a functionally justified distribution of their powers, taking into account the current conditions of development of the market economy. The important role played by measures of local authorities, aimed at creating a favorable business environment in the region to support the productive sectors, that is, to implement the tasks of state regional policy (Santos, 2017).

The importance of taking into account regional characteristics in developing policies to support "production" MS-entrepreneurship is due to the fact that this structural element of the market economy is mainly focused on local commodity markets and contributes to the use of entrepreneurial potential as a significant resource for regional development. At the same time, there is an impact on its economic, social and environmental components, which contributes to the balanced development of the entire administrative-territorial complex and the formation of IOP. In the future, this combination will ensure economic growth through the development of enterprises in the production sectors of the economy of the territories and social stability for their population – through additional revenues to the relevant local budgets and the direction of spending these funds to ensure priority social needs. The use of various forms of integration interaction between large and small (medium) SPDS will increase the production potential of the region (Pernía, 2009).

Among the measures that are already being implemented at the regional levels and are designed to promote the development of small (medium) businesses in our country, we can highlight: the creation of urban business incubators; the development and approval of a list of programs and projects that will be implemented jointly with the entrepreneurship support Fund for small businesses; the creation of working groups to review the adopted regulatory acts of local councils for entrepreneurship; the entry into force of the Law "on the basics of state regulatory policy in the field of economic activity"; the creation of informative publications to attract investment for the implementation of investment projects proposed by local governments for the development of territories; the creation of consulting and information centers within the departments of industry and entrepreneurship of local councils that provide free assistance to business entities in the framework of measures to promote the development of industry and small business in the territories. Such assistance mainly concerns: signing contracts with state centers of scientific, technical and economic information for the implementation of works on the creation and constant support of information resources "Science, innovation – production" on the Internet; maintaining information digests "New technologies for production, innovation and investment", Internet pages of local councils; creating advertising and informational sites, conducting seminars and meetings. It is appropriate to specify these measures for the relevant industries, which will ensure that they are likely to be used effectively by enterprises. To implement priority investment projects in industry, along with ministries and other Central Executive bodies that implement state industrial policy, regional government bodies should also work actively in this direction. Thanks to the established cooperation and new forms and methods of regional cooperation, the efficiency of budget resources aimed at investment support of industrial enterprises will increase. Opportunities for regional cooperation contribute to investment support for regional programs, the implementation of which is mutually beneficial for individual administrative divisions. The ability to combine budget resources allows you to financially ensure the implementation of large-scale projects. This approach also allows the implementation of pilot projects for enterprises of the industry, the development of which would be a priority on the territory of several administrative divisions.

Conclusion

Institutional support for sustainable regional development should include cooperation between public and private entities. Coordination of their activities will be carried out taking into account the specifics of the functioning of enterprises in production sectors and the establishment of new forms of regional cooperation. Thus, territorial communities can not only combine budget funds on a contractual basis for the implementation of joint projects, but also create appropriate bodies and services for this purpose. Thus, cooperation of local authorities provides for the establishment of new institutional structures in the governance of enterprise development at the regional level that will help to stimulate business activity of economic entities in the sphere of industrial production.

Institutionalization of regional policy by improving the organizational structure of regional development management will contribute to the development of investment support projects for enterprises in priority sectors of the industrial complex and the selection of public institutions that are able to meet their implementation and offer financing options and investors.

Acknowledgement

This study was financed by a grant from the Plekhanov Russian University of Economics

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