Small Business in Digital Economy

¹ Tambov State Technical University, Tambov, Russia
² Michurinsky State Agrarian University, Michurinsk, Russia

^* Corresponding author: khazanova@ya.ru

Abstract

Business plays a special role in the mechanism of sustainable economic development, since it provides not only the realization of innovative potential, but also the creation of decentralized jobs, as well as additional revenues to budgets of different levels.

Periods of economic instability for small business at the local level are a big challenge, because unlike large network structures, small business does not have the ability to diversify risks due to economies of scale. Changing the vector of the national economy development has a special impact on small business, which in developed countries is a driver of economic development. Thus, the digitalization of the economic system entails fundamental changes in the processes of value-added formation: industries are being modernized, trade and procurement procedures, related financial and logistics operations are changing, and consumption patterns are changing against the background of penetration of information technologies.

The article considers two key aspects: “small business”, “digitalization of the economic system”. The concept of “digital economy” is considered, its key elements, distinctive features, level of development in various countries are defined. The authors also clarify the distinctive features and structure of small business in the Russian Federation. A comparative analysis of the share of small business in some countries is given, and a model for the functioning of small business at the regional level is described.

The authors identify the problems and prospects for the development of small business in a digital economy. The article tackles the issues of the impact of the digital economy on the development of small business and the role of education in this process.

The article formulates the main trends of digital transformation that have a significant role for small business at the regional level; the essence of this influence is detailed, possible barriers, new challenges and prospects for the development of small business are indicated.