WHY THE INSTITUTIONAL MECHANISMS OF SUPPORT OF SMALL AND MEDIUM ENTREPRENEURSHIP IN THE CONTEXT OF PANDEMIC (CORONAVIRUSES INFECTION) DO NOT WORK

The main goal of this work is to determine the correlation between the level of development of institutional environment and level of development of SMEs, understanding why institutional mechanisms of support of small and medium entrepreneurship in the context of pandemic (coronavirus infection) do not work, as well as characteristics of the objects of the institutional environment, which have a decisive incentive and institutional impacts on the development of small and medium-sized businesses. As research methods, the article used systematization and generalization, while studying the works of previous researchers and determining the scientific problem, the methods of analysis and synthesis were used. Today, the entrepreneurial potential in Russia is rather poorly disclosed, which is due to the inconsistency or inefficiency of the components of the institutional environment, the unreasonableness of certain transformations, and the ineffective system of institutional conditions for conducting legal activities. The crisis that arose as a result of the pandemic has exacerbated all the existing problems of Russian small businesses and revealed the imperfection of the institutional framework, which currently cannot provide an acceptable and sufficient level of support for small and medium-sized businesses in the context of the pandemic. To get out of this situation, it is necessary to ensure the effective work of institutions that constantly search for and implement new opportunities for business entities, ensure their cooperation and interaction, as well as the ability to exchange innovative ideas. It is proved that institutional changes should take place in Russia, focused on supporting SMEs, which will lead to structural adjustment and create a favorable business environment, and as a result — will enable the implementation of priority socio-economic goals.

government support, loans, financing, institutional environment, small business, institutions, COVID-19, incentive mechanisms, business environment, investment, policy.

Stepanov N. S. Why the institutional mechanisms of support of small and medium entrepreneurship in the context of pandemic (coronaviruses infection) do not work. Business. Education. Law, 2020, no. 3, pp. 243–248. DOI: 10.25683/VOLBI.2020.52.349.