Small business as a factor and condition for reduction of territorial regional differences and contradictions in the level and quality of development

The article studies the problems of territorial differences in the context of small business. The authors clarified some provisions of existing statement that small business is an important tool for reduction of territorial differences. In particular, it is proved that the value of small business consists in reduction of the poverty level rather than increase of the wealth level in the region through increasing employment in the territory. Calculations of dependence of dynamics of basic parameters of the regional economies on the number, size and dynamics of small enterprises activity are provided. Logic justification is given to obtained results (factors of correlation, dispersion, etc.). It is found out that small business affects reduction of social and other differentiation within the region rather than the total growth of regional economies. Proposals for small businesses development are formulated based on the conclusion.

territorial differences, regional differences, growth development, small business, employment, poverty, wealth, growth of GRP, level of life, quality of life